I am sure you are like most that you dream about becoming wealthy. With that comes the feeling of being financially secure. You probably imagine what it feels like to never worry about money again as well as indulging in a few perks like a dream vacation.
You might equate being wealthy with making money or having a nice house and a great car…
Making lots of money doesn’t make you wealthy. And…if that bank actually owns that fancy house and car then you are not wealthy… you are just another person in debt and living beyond your means.
Depressing thought no?
Being wealthy means you accumulate money…or grow your money. You actually own your assets rather than actually having bank owned assets of which you are trying to make payments month after month.
That is probably the type of weathy you want and here are three keys to obtaining it. They are simple but that is the key… do not ignore them.
Key 1 is making money.
Told you…simple…very obvious even. But it important that you have some type of regular income coming in. The most important part of this regular income is that you need to be making more than what you need to cover your basic living expenses. This is the first key which brings us to the second…
Key 2 is saving money.
A lot of folks who start bringing in the cash start acting like they hit the lottery. Spending it left and right and even nickel and diming themselves out of everything.
For example…from personal experience I was going out to eat for lunch everyday. I realized that I was spending almost 3 grand a year on food for just myself…for lunch. Keeping that in mind, I bought my own lunch and only went out to eat for lunch once a week saving close to $2500 for the year.
Think of where you might be able to save. Cable bills are a big area. If you are paying rent for a cable modem, you are getting fleeced. Buy your own compatible router and kick that payment to the wayside. How about those 100’s of channels? Do you really need all of them?
These are the low hanging fruit of which you can scale back and not feel like you are making huge sacrifices.
Sacrificing brings up an interesting point…how much do you need to sacrifice?
It is going to depend on how wealthy you want to be, how much money you are making and how much you are saving.
In short…it is about balance.
I am not suggesting that you should be eating 10 cent ramen noodle packets for every meal you make. or even selling your car or truck so you can take the bus everywhere.
Guess what? The future is not guaranteed so sacrificing your whole life to only die and leave a few million dollars in the bank is just sad.
You have to be smarter than that and you do that by establishing some goals.
First of all, emergency money should be socked away. Conventional wisdom is about six month’s worth of living expenses into a savings account. That way you can weather losing your job (of course, in this current pandemic environment it is easier said than done.)
Second… short term savings goals… figure out how much money you need to be saving for a vacation or some other activity and set a date. That way you know exactly how much to pull out every month. Services like Digit are excellent at helping you do things like this.
But…don’t forget about retirement and other long-term savings goals… that money should not be in a savings account. It needs to be invested so you can grow it. That is the third key.
Key 3 is investing your money.
You need to put that money to work for you…
The cool thing is there are plenty of ways to this so you need to find something that suits your needs.
Popular ways include:
Investing directly in business (your own business or someone else’s business).
Artwork, antiques, precious metals.
Turns out there are two ways to figure out the correct investment for yourself.
The first way is figuring out your risk tolerance. That is going to take into account factors like how long do you want to save for a goal as well as how much do you want to get back from it.
For example, if you are young and are saving for retirement, you may opt for a portfolio with riskier stocks, simply because you have decades to recover if one of your risky stocks suffers. On the other hand, if you are near retirement age, you will put your money into much safer investments. Naturally, you should never put all your money into one investment type so this leads to the next point…
You should diversify…
This spreads out your money into different earning vehicles that allow you to absorb losses in any one particular area. For example, if you decide to invest in stocks then invest in a mix of companies across different industries, some of which are well-established.
Secondly, you need to diversify. Diversifying is a natural way to spread out the risk. You can diversify by putting money into a variety of investments, such as stocks, real estate, business investments and so on. You can also diversify within each specific type of investment. For example, if you’re investing in stocks, then invest in a mix of companies across different industries, some of which are well-established.
There you go, three keys to growing your money. They are making, saving, and growing your money.
They look simple on paper but putting into practice is another matter. You may struggle. You may have problems bringing in enough extra money to save. Once you do, you may just spend it all rather than save it. I know so many folks that have never even given a proper thought as to how to invest.
So there you have it, the three simple keys to growing your money:
• Make money.
• Save money.
• Grow your money.
Now while these keys seem simple on paper, putting them into practice is a bit trickier. Most people struggle. They have problems bringing in enough extra money to save. Then once they do bring in extra money, they tend to spend it rather than save it. A lot of folks never even give a proper thought to investing.
If you have read this far then I know something about you. You are wanting to learn more about making, saving, and investing your money. You are looking for financial security and want the peace of mind that comes with growing a big nest egg.
Why don’t you take a big step towards that right now? All you have to do is join The Marketing Colossus Freebies membership site today to discover what the world’s best investors know about making, saving and investing money. Inside I have a completely free course on building your wealth you will not want to miss.