You need to remember the following “Golden Rules” of Wealth Growth:
- Never lose money (be alert and exercise prudence to stay safe)
- Never spend more than you receive (if you “have dug yourself in a hole”–stop digging!)
- Become a little richer every day (develop a “wealth growth” pattern)
- Don’t take risk that makes you lose sleep (don’t rush into any “get rich quick” scheme)
You may perceive these rules symbolic, obvious or unrealistic. I would like to suggest that you don’t analyze these rules but instead internalize and apply them.
Imagine that your income is located deep in the ground, in a “money mine”, and you need to extract it (a.k.a. apply efforts to earn it) and then divide it into the following three jars:
- Spending—money that you need to spend to enjoy the life you want to have
- Saving—money that you positively cannot lose
- Investment—money you intend to use to grow your wealth
The objective is to fill all three jars, which is an equivalent of you achieving your goal of financial freedom. Although this goal may seem unrealistic at first for those with a modest single income source, it is up to you when to start. You may wait until you marry, have a better paying job or even until you retire. My advice is to start as soon as possible because it takes time to accumulate wealth without taking too much risk. Also, when I talk about different “money jars” I refer to physically separate locations (e.g. different bank accounts, brokerage accounts, etc.)
This “Wealth Growth and Wealth Management system” is neither complex nor sophisticated and it works. It requires your desire to win the “money game”, a bit of common sense and a commitment to “stay the course.” This system will interrupt your “money drama” and allow you to live well now and in the future.
Read more details on this topic next week.
You can also contact me with any questions on my website or FB page “Dare to Change Life”
To Your Health, Wealth and Happiness,