Quote of the Week:"Wealth is the ability to fully experience life."~ Henry David Thoreau.
We have all read an article or book about wealth and there is enough material about getting rich out there. In fact, you may have read or heard some of the things on this blog or somewhere else. However, we think the following advice will be worth your time as it is a collection of what may seem like common sense, dismissed as cliché or just generic,yet people just don’t follow it. Actually implementing itis what separates the wealthy from the rest. So, what is it that they don’t tell us about wealth (or that they keep telling us, but we don’t listen?)
1. Make Money. Save Money. Invest money. Spend. Repeat.
This is a loop most wealthy people follow. They do not spend money they have not made. They save the money they make and then invest, and spend what remains. They save the money not only for emergencies and the future but also to invest later. To them, spending is also a form of investing. They spend to make more money. They invest to make more money. These four are related to each other. This is a loop you need to follow yourself to become wealthy. Ensure spending is always the last item on your list, not the first.
2. Use Cash. Avoid Credit!
You need to avoid the trap of personal credit to become wealthy. There is no problem with debt as long as it is used to make you more money, many wealthy people rely on loans to scale or start their businesses. Very rarely will you find them taking a loan to finance their lifestyle. Avoid personal loans as much as you possibly can. If you have to take a loan ensure it is to build your business, and if possible, use your registered company to apply for it. Avoid spending money you have not made yet. Switch that credit card with a debit card.
3. It is Never About How Smart You Are
Well, if you can think of the next big tech idea, you will be a multimillionaire. But even then, you will need more than your brilliant idea to become wealthy. When it comes to wealth, there are other core values that make all the difference.
Wealthy individuals do not wait for the ‘right time’ to do something for example. They take advantage of time, not timing. Whether it’s saving for retirement, investing or starting a business, they understand that the earlier you start, the more successful you will become. When you start early, you will also have the time to make mistakes and learn from them.
Rich people do not think of cost either; They think about the value and mostly the value in the long term. Something might be cheap, but it doesn’t add any value to you in the long term. Similarly, something might seem expensive today, but its value is immense in the future.
Lastly, but perhaps more importantly, is discipline and patience. You will most likely not be rich overnight, it will take your time. Along the way, you will experience a lot of challenges; you will even fail a couple of times. You will therefore need a lot of discipline to stay on the right path in the face of all this. If you persevere, you will make it. Take action today, go forth and be wealthy.