As the world goes round and round the almighty dollar is what makes it turn. No matter how you feel about money it’s an essential part of our everyday lives. Without it we would not be able to survive in the modern world. It’s the reason why everyone gets up for work in the morning and what drives the world’s economy.
Knowing this, we must find ways to increase our wealth if we ever wish to get out of the rat race. Ultimately we all want to be able to do what we want when we want, whenever we want, and the only way to do that is to become financially free from the traditional burdens of society.
Unfortunately, the valuable lessons of money aren’t taught in school and probably never will be, so we must learn on our own. So here we go.
Making money is a game and the more you play, the better you’ll become. And just like every other game, the money game has some rules. Once you know them, you’ll be better suited to not only win but thrive in the process.
1. Profits are better than wages
Opening a business is the best way you can secure your finances while also increasing your cash flow. Business is an asset than when leveraged correctly can provide passive income for years to come allowing you to better leverage your time.
Although starting a business can be risky so is depending on a job. Nothing is secure nowadays, and the worst thing you can do is rely on your occupation as the sole means of income.
2. Invest and Re-invest
When it comes to accumulating wealth investing your money is the best way to create more. By making your money work for you, it can help add to your bottom line instead of sitting idly in a bank or worst being spent.
Once you invest, you can then re-invest your profits and continue to build on this snowball effect making it bigger and bigger. This tactic has been used by many making them wealthy in the process.
Expanding your cash flow into multiple income streams can take some time, but it will reduce your dependency on any one method. This will allow you to expand into different areas as you continue to build your nest egg.
In this volatile world relying too heavily on one source of income can be dangerous because of the ever changing economy. Take steps to spread money about to help mitigate risk as you work towards securing your future.
4. Buy Assets
Purchasing things that gain value over time is the smartest move you can make. Things like houses, property, stocks, and commodities will all rise in value which will negate the rate of inflation.
Once you manage to own multiple of these assets, you will be able to live off their cash flow or sell them for profit later.
5. Pay Yourself First
Before any money gets divvied up for bills and expenses, you should always pay yourself at least 10% first. Doing this will free up some capital for later and ensure that you always have something left over.
If at the end of the day you have no money after you pay the bills did you really make any money? Doing this will counter act this effect making it that much easier to stack your cash.
6. Commit to Mastery
As humans, we don’t have that long of an attention span and with that comes many ideas. These ideas flow through our minds daily, which it makes it incredibly easy to become side tracked from our financial goals.
Whether it’s jumping on a get rich quick scheme or bouncing around from business to business learn to slow down and become an expert at one idea before jumping to the next.
7. Live like a Minimalist
It’s easy to get caught up in the consumerism of today’s world. Advertisements are everywhere begging you to spend cash in every conceivable way. Being able to spend your money wisely and on things you truly need and stuff you actually want is the best thing you can do to solidify your financial future.
In short, there are plenty of ways, but there are more ways of losing it. Watch your cash flow and always be in tune with the ever changing market place. Doing so will solidify your wealth while protecting your losses.