There’s one thing about being successful – it’s best learnt from those who have already done it. In the last few years, I have read tons of internet articles and books on making money. Well, I guess it’s something anyone wants to learn. If you feel that your life is moving forward and your wealth isn’t surging accordingly, you’ll be keenly picking multiple sources to see what you can do to improve your situation.
In this article, I have highlighted all lessons I have learnt on the subject of making money. You can also benefit greatly from these insights as I believe they have enriched my life in a significant way.
1. Money is Freedom
Make no mistake – money equals freedom. One of the best books I ever read on the subject of wealth taught me that without enough of it, it’s impossible for most people to live life to the fullest. Of course, there are a lot of people who’ll disagree with this notion, but it certainly makes great sense. The rich know it. I’m not trying to say that money can buy freedom. What I’m trying to say is that having enough money gives you the freedom to choose what you want to do, and when you want to do it. So rather than committing all your time to the 9-5 office job so that you can be able to pay your bills, you’ll have the freedom to think beyond that. Think about it! If you really had a lot of money right now, would you still be doing that job? And what if you get sick. Could you be able to afford the best doctors medical practice has to offer?
2. Invest Daily
Yes, at this stage, you’ve already learnt that money is freedom. But how do you actually start making that money so you can enjoy this freedom? The time is right now. If there’s one thing I have learnt from the rich, it’s that every day is the time to make investments. Opportunities are always there, you just need to open your eyes to be able to see them. That conversation you had with your friend, parent or colleague the other day could be the unique opportunity you’re waiting for. Think about Mark Cuban, internet billionaire and a ‘shark’ on the popular TV program ‘Shark Tank’. The guy used to sell beer, alcohol and that kind of stuff in a bar. But then he got an idea about starting a video site. The idea became really successful and eventually he sold it for billions of dollars! So never say that there are no opportunities anymore. Just look very closely and you’ll definitely see them.
3. Don’t Spend
I have learnt that not spending is the same as making money! But this doesn’t mean that you have to become a penny pincher. It just means that you need to sacrifice in some areas so that you can make enough money to invest elsewhere. For instance, if you’re flying from one city to another and a plane ticket costs more than $3000, why don’t you take a seat in business class and save $1,000. Somehow, you’ll have earned a thousand bucks, which you can channel to an investment somewhere. Money working for itself is money you don’t have to earn again!
4. Invest in Assets
And not just assets. I have learnt this from a number of articles written by some of the most successful entrepreneurs today. There’s the middle-class syndrome, and I guess that’s where I belong. We are the guys who earn a substantive amount of money, and then squander all of it on ‘lifestyle’. We buy expensive clothing, accessories, cars, etc. Instead, we should be investing in appreciating assets! It’s that simple!
5. It’s About the Skills
If you’re still employed and earning a decent sum of money, have it in mind that it could all go away in a snap. So never take comfort in your paycheck. Rather, focus on the skills. You’d rather get a low paying job in your 20s, and then become a multi-millionaire in your 40s. So if there’s anything you can do to increase your skills when you’re young, bank on it.
6. Don’t Put All your Eggs in the Same Basket
Don’t make this mistake that a lot of people still make. The wealthiest people will never put all their money in one or two stocks. They will diversify it to include a variety of investments, bonds, stocks, mutual funds, etc. Think about Sir. Richard Branson. His company, Virgin Group, owns over 400 other companies. So if one sector of the economy gets hit really hard, Mr. Branson can always afford to smile. Because he made the smart decision not to put all his eggs in one basket. Instead, he put them in so many baskets!
Well, I’m not a self-declared tutor, but those are some of the important things I have learnt about money, making it and keeping it. So try to see whether you can borrow a leaf!