Many of us would love to be an Elon Mask, or a Mark Zucherburg, Bill Gates or Steve Jobs.
However, the chances of that happening are very slim – not impossible but very slim. You may not be the next Billionaire, but that should not stop you from striving to be the next millionaire, in your lifetime.
Money is the measure of many of our successes. It is the seed of many of our potentials and possibilities. If you wish to ensure a secure and wealthy life for yourself and your immediate future generation there are a couple of things you should be doing with your money to set you clear into the future.
Many of us do not come from generational wealth, but that should not stop you from starting your own generation of wealth. Apart from leaving a legacy of your first and last name, how about you leave behind a legacy of wealth such that your children and your children’s children will never have to worry about the need for money nor to have to learn the hard way of making money. It all begins with these simple principles.
There are three things you should be doing with money that will start you on a journey towards a legacy of wealth
ONE: You Need to Earn Money
There two ways of earning money is:
- Get employed by someone with a job that pays – if you get one that pays well, even better,
- Employ yourself – the business of selling your skills and services – if you have plumbing skill, employ those skills, if you have accounting and bookkeeping skill earn an income employing those skills.
Earning money shouldn’t be too much of a problem for many people. Despite the high levels of unemployment, there are many other opportunities that will help you earn money.
To begin with, start with the most obvious, getting a JOB.
Jobs are to careers what money is to wealth. A lot of the time we confuse the two. Your job is all the activities that you do to earn an income, a career is the path to which you travel whilst earning and income.
A lot of people think just because they are qualified as accountant, they need to get an accounting job – not necessarily.
Start your careers by getting a job that will earn you an income. Once you are earning an income you position yourself to move into the path of your desired career. If finding a job is not a so possible, apply your skills to the many needs of the people around you to start a business so that you can earn an income.
TWO: You Should be Saving Money
Now that you are earning it, it’s time you start keeping most of it. If you thought earning money was hard, try saving it.
Not to say it is impossible – but when you take into account the cost of living, and the many other financial responsibilities that come with surviving from day to day, saving can be a challenging task – but it shouldn’t be. My philosophy is that everything becomes easy when you know how.
Pay yourself First
In order to start saving it, you need to know how to save. The principle of saving is about paying yourself first. A little selfish to some, but it is the one thing that we all forget to do. When you work hard to earn your money, the least you can do for yourself is pay yourself first.
I know you might be thinking, does this mean I need to spoil yourself with a gift, a day at the spa or a shopping spree – not at all. All you would be doing there is paying other people but yourself.
Save 10% of all your earning in the form of a saving account. Make this a monthly habit and have the discipline of saving. My accounting teacher used to say, save a cent to buy a farm. Start small and grow your savings pot, daily, weekly monthly and yearly.
THREE: You Should Invest Money
If you can tell the difference between gambling and betting then the concept of investing shouldn’t be a hard one to grasp. But just in case you are indifferent to these words, gambling is based on the hope to win; betting is a calculated chance of winning or losing. To clarify the two, buying lottery tickets with the hope of winning is
To clarify the two, buying lottery tickets with the hope of winning is gambling while betting that on a team that’s had a winning streak in the season games is more calculated.
The Simple Principle of Investing
Investing is about placing your bets on the winning team – where the chances of loss are minimum. When investing start with the lowest risk of loss. Simple or compounded interest is a good start. Invest your money in a saving plan that earns you interest. Compounded interest is the best because you are earning interest on interest.
Simple or compounded interest is a good start. Invest your money in a saving plan that earns you interest. Compounded interest is the best because you are earning interest on interest.
Invest Where Your Money Gets The Best Returns
Once you have mastered the art of investing in simple or compounded interest, move one level up to capital growth investment, this would be investing in things like stocks and property. Let’s face it not everyone may have the large capital outlay required for stock or property investment but there are means and ways of minimising the chances of loss
Let’s face it not everyone may have the large capital outlay required for stock or property investment but there are means and ways of minimising the chances of loss through Exchange Traded Funds or Unit Trust, or Listed property stocks and shares.
Avoid the Temptation to fast-track your wealth
The temptation to fast-track the simple steps to wealth creation is always there. With the desire to speed up the process of wealth, a lot of people lose a lot of their money because they want to take short cuts in their jobs, try to save in get-rich-quick schemes or invest in untested solutions. Tread carefully with your money, it is the bread
Tread carefully with your money, it’s the bread crumbs on the journey to your legacy of wealth.