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Who doesn’t want more money? You may think that billionaires like Jeff Bezos, Warren Buffet, and Bill Gates have enough money, but they don’t. These guys are at another level. They no longer see money as we do — spending potential. They see money as capital for investments. It is how they made their fortune.
So, there you have it. If you want to increase your wealth, start investing. Easy, right? Surely not. Investing requires some financial education, some capital, and lots of patience. A lot of us don’t have these qualities, but we can earn them.
Financial education
Financial education teaches us about money and how to earn it smartly. I recommend reading “Rich Dad, Poor Dad,” written by Robert Kiyosaki and “The Richest Man In Babylon,” written by George Clason. The biggest lesson I learned from these books is the value of making money work for you.
Yes, we are taught in school to work for money, but these books teach us to make money work for us. It is how top Forbes successful people did it and continue to do it. It is straightforward for them, but not for us.
You must be asking now: how can I make money work for me if I don’t have any? Shouldn’t I work for money first to earn them? It depends on your character. Many successful investors invest money which isn’t theirs. You can do it too if you have the guts.
For example, you can borrow money, invest, make some profit, payback, and reinvest your profit.
Others start their own business and then invest, but this is still the same concept: make money work for you.
The first step is to educate yourself on finances. Learn everything you can about how money works. You can start with the two books mentioned above and with “The Rich Dad Channel” on Youtube.
Personal finance management
It is the point of this article and the first step in making money: cash-flow. Where does your money go? Do you buy more liabilities (cars, clothes, parties) than assets (real estate, commodities, businesses)? Do you save money every month, or do you spend mindlessly?
Taking control of your finances is the first step in making money work for you. If every month you remain with 0 and you depend on the next salary, then you are not doing something right. You are consuming too much. I advise you to lower your consumption or increase your income so that every month you save at least 10% of your income.
Saving 10% every month is not that big a deal, but makes a big difference in the long run as you increase your capital. Having capital is the initial step in investing and making money work for you.
Investments
Now that you have a capital, you must make it work for you. If you keep on saving money without investing, it will depreciate as inflation increases every year. This year will be the worst in the last two centuries as the pandemic affects the global economy, especially the US economy and dollar.
An important question is where to invest?
I started taking a look at the stock market, commodities, and ETFs. I lost a pretty lot of money before I educated myself enough. I advise you to be prudent and learn from my mistakes. Don’t invest in something you don’t understand. You can also make a bank savings deposit that pays annual interest rates.
Do your research and choose something with minimum risk and in which you feel confident.
Summary
- save 10% of your income every month;
- start reading financial education books;
- invest smartly.
There you have it! I hope you enjoyed it and be sure to share it with your friends and stay tuned for upcoming quality posts. Take care!
Originally posted on Lifestyle Maniacs!
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