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How many of you consider yourself to be rich? I'm sure alot of
you have at one point made alot of cash. What did you do with it?
Did you invest it? Did you blow it on hookers and drugs? Or is it
secretly working for you everyday making cash while you sleep? I
am not rich, and I never really aspired to be filthy rich, although
it would be nice, I always just wanted to live comfortable and not
worry about money.....on second thought maybe I need to be rich!
There is an article thats been around for awhile that I think is
a great read. I look at it from time to time. It's a great guide
to help put you on track to becoming wealthy one day!
Change the Way You Think About Money
The general population has a love / hate relationship with wealth.
They resent those who have it, but spend their entire lives attempting
to get it for themselves. The reason a vast majority of people never
accumulate a substantial nest egg is because they don't understand
the nature of money or how it works.
Cash, like a person, is a living thing. When you wake up in the
morning and go to work, you are selling a product - yourself (or
more specifically, your labor). When you realize that every morning
your assets wake up and have the same potential to work as you do,
you unlock a powerful key in your life. Each dollar you save is
like an employee. Over the course of time, the goal is to make your
employees work hard, and eventually, they will make enough money
to hire more workers (cash). When you have become truly successful,
you no longer have to sell your own labor, but can live off of the
labor of your assets.
Develop an Understanding of the Power of Small Amounts
The biggest mistake most people make is that they think they have
to start with an entire Napoleon-like army. They suffer from the
"not enough" mentality; namely that if they aren't making
$1,000 or $5,000 investments at a time, they will never become rich.
What these people don't realize is that entire armies are built
one soldier at a time; so too is their financial arsenal.
With Each Dollar You Save, You Are Buying Yourself Freedom
When you put it in these terms, you see how spending $20 here and
$40 there can make a huge difference in the long run. Since money
has the ability to work in your place, the more of it you employ,
the faster and larger it will grow. Along with more money comes
more freedom - the freedom to stay home with your kids, the freedom
to retire and travel around the world, or the freedom to quit your
job. If you have any source of income, it is possible for you to
start building wealth today. It may only be $5 or $10 at a time,
but each of those investments is a stone in the foundation of your
financial freedom.
You Are Responsible for Where You Are in Your Life
Years ago, a friend told me she didn't want to invest in stocks
because she "didn't want to wait ten years to be rich..."
she would rather enjoy her money now. The folly with this school
of thinking is that the odds are, you are going to be alive in ten
years. The question is whether or not you will be better off when
you arrive there. Where you are right now is the sum total of the
decisions you have made in the past. Why not set the stage for your
life in the future right now?
Instead of Buying the Product... Buy the Stock!
Someone once asked me why they weren't wealthy. They always felt
like they were putting money aside, yet never seemed to get any
further ahead. The answer is simple. I told them to stop buying
the products companies sell and start buying the company itself!
A survey of America's affluent (those who make over $225,000 a year
or own $3,000,000 in assets) revealed that 27-30% of all the income
the wealthy earned went into investments and savings. That isn't
a result of being rich, that is why they are rich. When the pain
of getting out of the bondage of financial slavery is greater than
the pain of changing your spending habits, you will become rich.
Either change, or be content to live as you are.
Study Success and Those Who Have Achieved It... Then Emulate
It
A very wise investor once said to pick the traits you admire and
dislike the most about your heroes, then do everything in your power
to develop the traits you like and reject the ones you don't. Mold
yourself into who you want to become. You'll find that by investing
in yourself first, money will begin to flow into your life. Success
and wealth beget success and wealth. You have to purchase your way
into that cycle, and you do so by building your army one soldier
at a time and putting your money to work for you.
Realize that More Money is Not the Answer
More money is not going to solve your problem. Money is a magnifying
glass; it will accelerate and bring to light your true habits. If
you are not capable of handling a job paying $18,000 a year, the
worst possible thing that could happen to you is for you to earn
six figures. It would destroy you. I have met too many people earning
$100,000 a year who are living from paycheck to paycheck and don't
understand why it is happening. The problem isn't the size of their
checkbook, it is the way in which they were taught to use money.
Unless Your Parents Were Wealthy, Don't Do What They Did
The definition of insanity is doing the same thing over and over
again and expecting a different result. If your parents were not
living the life you want to live then don't do what they did! You
must break away from the mentality of past generations if you want
to have a different lifestyle than they had.
To achieve the financial freedom and success that your family may
or may not have had, you have to do two things. First, make a firm
commitment to get out of debt. To find out which debts should be
paid off before you invest and those that are acceptable, read Pay
Off Your Debt or Invest?. Second, make saving and investing the
highest financial priority in your life; one technique is to pay
yourself first.
Purchasing equity is vital to your financial success as an individual
whether you are in need of cash income or desire long-term appreciation
in stock value. Nowhere else can your money do as much for you as
when you use it to invest in a business that has wonderful long-term
prospects.
Don't Worry
The miracle of life is that it doesn't matter so much where you
are, it matters where you are going. Once you have made the choice
to take control back of your life by building up your net worth,
don't give a second thought to the "what ifs". Every moment
that goes by, you are growing closer and closer to your ultimate
goal - control and freedom.
Every dollar that passes through your hands is a seed to your financial
future. Rest assured, if you are diligent and responsible, financial
prosperity is an inevitability. The day will come when you make
your last payment on your car, your house, or whatever else it is
you owe. Until then, enjoy the process.
Article worked up through About.com
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