Investing in your most important asset: Your mind Do well in school and get an education. Choose a high-paying profession such as doctor, lawyer, economist, banker, etc. This will give you a head-start and a safer economic position. Unless you very much enjoy living in a big city and having gone to a school with great name recognition, consider jobs that do not require these often very expensive things but simply good skillful work for good pay. Otherwise you may end up with only a high gross income. Learn about basic economics. Its important to have an understanding of such basics as compound interest and investment strategies. Be intuitive.This means having a broad base of knowledge including that which seems somehow practical but not necessarily usable at the time. A broader understanding of the world helps you to work with a range of problem solving methods. Develop yourself all your life. Increase your professional skills, leadership skills, financial skills, social skills and general life skills. Making––and keeping–– yourself valuable will increase your chances regardless of your path to riches, Ongoing self-development will enable you to derive more utility from any given amount of riches. Develop a vision as to why should you become wealthy . Based on this vision youve selected for yourself, set your goals. You will not rise up unless you are able to build and focus your ambition. Stay healthy and maintain a healthy weight . Theres a saying that health is wealth. It is very important to stay healthy in your endeavor to become rich. This will enable you to work hard and also increase your life span increasing your earning and pension- drawing period. On the other hand, you will be able to reduce the cost on health care. You will also have more time to enjoy your money including perhaps through philanthropy in retirement. Its a reality that not everyone can afford good medical care as they attempt to save and improve their lot in the world. That said, you can pay attention to absolute foundational requirements for health, such as daily teeth cleaning, avoiding junk food, eating plenty of vegetables and fruits, exercising regularly and practicing mental self-care, such as through meditation, writing out your feelings and dealing with stress constructively. Try hard to not blame other people or your circumstances for the situations you find yourself in––where the blame lies is not the issue, its about how you react and what you do that counts most. Investing Start investing as early as possible. Learn through your small minimum investments so that you can progress to larger investments. Consider the cost of the funds lost from not working while in college, as well as, tuition and interest. Do not wait until you have enough money to invest. You will end up with a larger account in the end if you start investing a small amount early and keep adding more regularly. Make smart investments. This will come with learning but can also be improved by reading about investment strategies and learning from those who invest wisely, such as Warren Buffett. Borrow books from the library to learn more. If you dont understand what you are investing in, invest small or not at all. Start with something easy like index funds. They have fewer ups and downs than individual stocks, and you will not have all your eggs in one basket. Put all your eggs in one basket, and watch the basket. W Buffett. Stay as debt free as possible. This is your safety net. A paid-for education and a paid-off house will enable you to invest more money in the stock market or your own business. Only gear up low-risk investments with loans. Start now. Whatever the amount you can spare, getting started is better than never starting. The power of compound interest can make anyone wealthy. Example: Investing only $10 every year at 15 % annual profit will give you over $1.3 million after 70 years. Starting your own business Seek to be in charge. It is always better to be an employer than an employee. If you are disciplined and able to devote time and money, consider starting your own business and reaping the rewards for your hard work and leadership. Learn all you can about running a business. Take a class. Ask an experienced business owner for advice. Be careful, though. Many businesses fail, especially in their first year. You could end up with considerable debt, no savings, and no benefits. Get help! You dont need to be the only person in your business to avoid having someone siphon off the profits from the contacts and goodwill you generate. If you can work efficiently with someone with complementary skills who is very honest and reliable, you could start a business as co-owners. Businesses do fail but the reasons behind the failure can often be avoided. For example, do thorough research before starting, to ensure youre not putting more of the same on the market. If you want to do something generic, think hard about what makes your offerings better or different from existing ones. Or, find something unique. Second, hard work is essential, along with dedication. This doesnt mean making work to look busy––it means being focused, connecting with the right people, managing your time properly and being on top of all the business incomings, outgoings and issues. Use your own business as the best shot at big wealth . Entrepreneurs make up the majority of millionaires, it is high risk, but it is also the most likely way to become truly wealthy. Few people amass great wealth through other means. Less than 1 percent become a millionaire through other means such as being a rock star, winning the lottery, etc. So unless you inherit wealth your best shot is doing this. Note that you can start your own business part-time . For example, real estate, tax sale investing, purchasing, renovating and selling homes are various common ways to build wealth gradually for people without money to invest. Be Smart Learn about budgeting, credit, and debt. Learn how credit cards work (or dont work for you)! If you get into debt early, it can sabotage your progress. Put an amount of money in the Credit Union monthly . Ten, 20, 30 dollars is good - $100 is better. By the time you get old, retirement will be easy. (See above for compound interest.) Buy a house early. If you are in college and cant afford an apartment and dont like those nasty dorms, then gather with 3 or 4 people, and buy a good sized house while splitting the payment. Itd probably cost less than a apartment. Better yet, buy yourself a home using a mortgage and pay yourself instead someone! Listen to your instincts and dont be afraid to go against the flow . If someone tells you that they have found a sure-fire opportunity to make you rich, it usually means that they have found a sure-fire opportunity to make themselves rich by convincing you to buy their product. So stop and think––there are millions of great opportunities out there. You just have to filter out all the background noise to find those opportunities because, in the real world, no one else is going to find them for you. Above all commit your ways in the Lords hand. God bless and have great day ahead
Posted on: Wed, 05 Mar 2014 05:48:44 +0000
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