Spend less than you earn – invest the difference.
This is the only way you can accumulate the money for your investment fund. Your money can’t work for you if you don’t have any money to put to work.
Consider this. It’s almost impossible to become rich by spending more than you earn. Most people spend more than they earn. Most people aren’t rich.
Consider this. It’s almost impossible to become rich by spending more than you earn. Most people spend more than they earn. Most people aren’t rich.
Use a part-time job or a part-time business to add more money to your investment account.
Use people leverage to add more money to your investment account.
You can turbocharge your journey to wealth by employing other people in your part-time business or by taking advantage of network marketing.
You can turbocharge your journey to wealth by employing other people in your part-time business or by taking advantage of network marketing.
Buy things that appreciate.
Don’t buy things that depreciate.
Stocks, mutual funds, and real estate appreciate over time. That means your money is working for you. Stereos, fancy clothes, automobiles, and big screen televisions depreciate over time. That means you are going backwards – that you are losing money. That’s not the way to get rich.
Stocks, mutual funds, and real estate appreciate over time. That means your money is working for you. Stereos, fancy clothes, automobiles, and big screen televisions depreciate over time. That means you are going backwards – that you are losing money. That’s not the way to get rich.
Own your own home.
Renters and homeowners both make the payments every month. You won’t get rich collecting rent re- ceipts. You get rich by owning real estate.
Avoid debt.
Some types of debt are good. An example would be the mortgage on your home (assuming you’ve bought a home within your means). This is debt on an appreciating asset.
Most debts are bad because you are paying inter- est on that debt. Paying interest is having your money work against you. It is robbing your invest- ment fund of valuable capital that could be used to work for you.
Worst of all is paying interest on a depreciating asset such as an automobile. Not only are you losing money by paying interest, but the item you are paying for is also losing value at the same time. That is what’s called a “double whammy.”
Most debts are bad because you are paying inter- est on that debt. Paying interest is having your money work against you. It is robbing your invest- ment fund of valuable capital that could be used to work for you.
Worst of all is paying interest on a depreciating asset such as an automobile. Not only are you losing money by paying interest, but the item you are paying for is also losing value at the same time. That is what’s called a “double whammy.”
Start young – or as young as you can.
That means start now. Let time work for you, not against you. The longer your investment fund grows the more money you’ll have. Even if you invest very conservatively, time and the magic of compound in- terest will serve you well.
The choice of what you’ll say ten years from now depends on what you do today.
Protect your investment fund by reducing risk.
What good is it to save your money, only to lose it later on a speculative risk? It’s better to have a lower return and all of your investment fund than a higher return and sleepless nights worrying about your money.
Have patience.
Your investment fund won’t grow rapidly over- night. Consistent investing will give your good re- turns in the long term. Investors who have become rich in stocks have in- vested over a long period of time.
Handle your finances like an adult.
If you handle your money like a four-year-old, you’ll have the savings account of a four-year-old.
Don’t worry about inflation.
Inflation will occur whether you save money or not. So why not save money? You’ll like inflation a lot better when you have a large savings account.
Can’t seem to find any money to start your investment program?
Try this. Now I’m not asking you to budget. I’m only going to ask you to keep track of where your money goes for 30 days. Here is what you do.
Take a blank paper. Simply record every expense you spend for one entire month. Write down when you buy a pack of gum, a pack of cigarettes, a soda, when you buy that sandwich or movie ticket.
At the end of the month, review your register. Look at all the miscellaneous expenditures you made that could have been turned into investments. Will you do this? Only if you are serious about be- coming rich.
At the end of the month, review your register. Look at all the miscellaneous expenditures you made that could have been turned into investments. Will you do this? Only if you are serious about be- coming rich.
I’ve seen people who earn P20,000 make regular contributions to their investment fund. I’ve also seen people earning P60,000 a year spend P70,000 a month and go bankrupt.
Saving money has nothing to do with how much money you make. It has everything to do with
personal commitment.
And now it’s up to you.
Now that you know the rules, your personal wealth is not dependent on chance. You can make the choice to be rich, to retire wealthy, and to have the time of your life!
