Guys, let’s see this, and to be honest we all know that there are certain people who are rich beyond our imagination. Usually, there is a 90-10 rule in this world, which means that 10% of the population earns 90% of the wealth, and out of that 10% only 1% is ultra-rich. If anyone makes it to that 10%, that person can be a millionaire or a multimillionaire which is not a bad deal.
ONLY 10% ARE RICH
THIS IS HOW YOU CAN GET STUCK
But how do you get your first million or even your first $100k? Well, we must see that most of the people who have become millionaires were self-made. Some got it in inheritance. But most people who got an inheritance lose it cause they fail to follow certain rules about money and wealth, which is crucial for them to keep those riches. Ordinarily, 90% of the population has no clue about what it takes to generate wealth and they continue to live their whole life paycheck to paycheck. And, when special occasions or emergencies come into their life, they borrow money from friends or relatives or get a high-interest-charging loan or get into credit card debt. This way the poor or middle-class people get caught up in a loop and that makes it difficult for them to break free. However, in saying this there are simple things we can do with the money that can get us out of this mess with these 5 simple rules.
WHY 5 SIMPLE RULES TO GET OUT OF THIS MESS?
Well here is the thing, if you are happy with a 9 to 5 job where your boss tells you what to do, and when to do plus you have to deal with office politics every day Monday to Friday and you cannot take a vacation without your boss’s permission, you either rent or own an average house to get by, and you deal with all of that and get only 2 days to rest and recover in order to pursue your dreams, hobbies, and interests, however, that too gets filled up with house chores, etc, so alcohol and junk food becomes an easy escape to forget about the whole week and 2 days later come Monday you struggle to get out of bed to go back to the same job and have same things happen over and over again. Not to mention that all that stress takes a heavy toll on one’s mental and physical we being. And, then you realize that you are just stuck in a rut and It’s just like going to a roundabout and keep circling the roundabout over and over again. This is called going nowhere, why because you keep circling around the same roundabout. So if you want to go somewhere you need to exit the roundabout and start driving in a straight line. Unfortunately, we understand this a simple thing while driving a car but we fail to understand this when we are living our lives from paycheck to paycheck.
So if you want to get somewhere in your life and start doing what you really care for, like going on a vacation whenever you want, wherever you want, living in your dream house, never asking for money again, pursuing your hobbies and interests, living a healthy & fulfilling lifestyle and living a life of your dreams, than you are going to have to STOP going around in circles and take an exit and start going straight towards your destination.
WE THOUGHT THAT A JOB IS A SOLUTION FOR EVERYTHING!
Now, this all sounds really good on paper but how do we really break this cycle, and go in a straight line toward where we are meant to be going?
Let’s just be honest here, we got into this rut because of a promise we made to ourselves that when we get a job, we can live our lives and do whatever we want. This happened because we got out of high school or college and started making enough money to pay rent and party hard, we were no longer required to live with our parents and their rules anymore and that felt amazing also because we were able to do whatever we wanted to do without any restrictions or boundaries. So, until in our early to late 20s, we are in this party mode thinking we have truly made it in life until we started getting closer to 30 years of age and started realizing where am I going with all of this? For some people, their mid-life crisis starts in their early 30s for some it takes longer.
WHY START SOONER THAN LATER?
Well, it’s good that reality hits you sooner than later because the later you realise the more difficult it becomes, I am not saying that it’s impossible to be financially independent in the 30s or 40s, what I am saying though is that in the early to late 20s, you are still a powerhouse of energy and if you learn how to use that along with 5 simple rules than it becomes easier compared to when you are in your 30s as you will not have the same energy like in your 20s, and it will become a bit more difficult in your 40s as you will not have the same energy as in your 30s and so on. That’s why staying healthy in body and mind is not just important but it’s also non-negotiable, however, we won’t talk about health and fitness here as it is another topic for another day, but nevertheless a very crucial and non-negotiable topic. And to be honest whenever you realise it’s time for change and when you truly want change then you change, however, you would need a strong enough desire, and then age will become just a number.
So, if this makes sense then let’s look at those 5 simple things that we can implement sooner than later in order to start the process to break through the rut we might have created for ourselves.
RULE # 1 – DO NOT OVERSPEND
This is the simplest yet the most difficult one at the same time. As you know overspending simply means you are spending money above your means. So if your salary is say $3000 a month and you are spending about $4000 a month then you are overspending. This is the easiest trap for young adults, especially in their 20s. As they can easily get a loan, a credit card, and purchases on buy now pay later that makes them think they can afford pretty much anything. Then it starts getting worse after a while. These people will take more loan to pay off the old loan called debt consolidation loans, they will seek to increase the limit on their credit cards and their credit cards gets maxed out, then they start borrowing money from friends and family. So the easiest way to stop this is to make sure you keep track of your income and expenses every week or every month and simply do not spend more than what you earn after taking 10 to 15% of your income into a savings account.
RULE # 2 – DON’T STOP LEARNING
Imagine a successful businessman who grew up in the 70s still using fax machines and traditional landlines to communicate. He doesn’t know how to send emails or use a mobile phone. Well, he won’t be successful for long then, isn’t it? Technological change is just one aspect of it, however, over time the laws change, the markets change, consumer behavior changes, and pretty much everything changes as change is inevitable. The business to fails to innovate and adapt to change just simply fails. Look at Elon Musk for an example he is the one who invented PayPal, and so many other things when the internet was still in its infancy, today he is known for producing world-class electric cars called Tesla and most people would love to buy a Tesla. Another example is Jeff Bezos, he invented online bookstores back in the 90s when people were still learning how to send an email, today he is one of the richest men in the world, and history is filled with many many more examples like this. Therefore, the entrepreneurs who are constantly learning, evolving, adopting, and implementing changes usually are also the most successful ones as well. But, how would you apply this to yourself to get rich? First, you need to decide what you want to do.
This means that you are going to have to choose if you want to be a Blogger, Vlogger, Share Investor, Crypto Investor, Property Investor, Dropshipper, Website Maker, YouTuber, and the list goes on and on. Once you have decided your niche say you want to be a Share Investor, then you have to constantly read and research for existing and upcoming companies, keep your portfolio in check, attend meetings and conferences of Share Investors, have a circle of friends and contacts who are in the same field, be up to date with latest magazines, trends, news about your field and that will increase your chances of success!
RULE # 3 – Invest to Grow
Basically, there are two types of investing – One is investing in Shares, Cryptos, assets, properties, machines, gold, etc and the other one is investing in oneself. The purpose of both of these two kinds of investing is to grow. Let’s just talk about investing in things first. See you can invest your money in buying the latest gadget or an expensive gaming system, a really expensive phone, furniture, clothes, etc. Say you spend $1000 a month extra because you always want the latest gadget with the best brand, what I mean by that is for example Nike is selling the latest model Jordan shoe for $400 and two months later a new Jordan shoe comes out making the other $400 shoe obsolete which is now selling for say $250 as they want to clear the stock. In reality, a shoe that was in fashion two months ago will still look fashionable even though a new model has entered the market so if you buy that shoe for $250 you saved up $150 and now you do the same with your groceries, clothes, fuel, etc. After a month say you have saved up $1000 and you invested in XYZ shares. Note that all the money you would’ve spent even on that $400 shoe would have made that shoe obsolete and its value will keep going down until it’s worth ZERO dollars, however, all the money that you saved on shoes, groceries, clothes and invested the $1000 in shares, or gold or silver, etc, that investment will keep growing by say about 8% market average approximately every year. So after a year, your $400 shoe has come down to ZERO dollars but your $1000 investment has gone up to $1080. Now imagine you do this every month then every year you invest $12,000 and make an additional $960 on top. And the best part is that your investment grows with compound interest year to year so in this example, in the next 10 years if you keep investing that $12,000 a year with approximately 8% avg market return then you would be sitting on $199,798 or around $200,000 which in 20 years becomes $600,000. Simply because you decided to invest your money in assets that grow over a period of time instead of investing in assets like the latest shoes, cars, music systems, gadgets, etc. That too without working extra hours but by smart saving tactics and not overspending on things that go down in value over time. So, the conclusion is to find investments in assets that grow over a period of time like real estate, stocks & shares, gold & silver, certain cryptocurrencies, etc. Spend some time researching these assets, understand them, and start investing, because investing in the right kind of assets makes your money grow.
AND ALSO INVEST IN YOUR HOBBIES OR INTEREST
The point is that you would need to be wise with money by-
1. Stopping unnecessary expenditures,
2. Getting into a habit of saving,
3. Doing extra gigs here and there to get additional money.
You will be surprised how much extra money you could end up having this way. In the end, you pour that money into your carefully selected, well-researched assets pool which makes your money grow. We will show you how you can find out more about such wealth generating assets pool. The second most important, or some people will say it should be the first most important investment is in yourself. For example, see what is your hobby or interest, you might be into writing then become a copywriter, or you might be into self-help or motivation then become a motivational speaker, you might be into herbal medicine then become a herbal medical practitioner, and the same with astrology become an astrologer, into guitar become a guitar teacher, into software become a programmer and so on. The point is that acquire a second skill that is different from your profession and in line with your hobby or interest and master that field so that even if you have to leave your job or you get fired and you are already making endless amounts of money from your hobby then no one can retire you or fire you or stop you from making money from your hobbies and interests and you can keep pouring that money into your investments so your passive keeps growing as well.
Rule # 4 – Learn to Ride the Wave
Do you know where in the world we get the highest surf waves? You must be wondering what has that got to do with finance or making money or passive income. Well here is a thing. Surfing and making money have a lot in common. In fact, any sports for that matter, and making money have a lot in common. You know that a skilled seasoned surfer who has had a good amount of experience surfing will always go to the best places in the world to find the highest waves – why, because that surfer knows the importance of timing. In surfing catching the wave at the right time is everything, you don’t catch a wave – you don’t ride, period. The same is very true in the world of finance and investing to create a passive income.
The most popular examples in the world of investing would be when Amazon became public and when people were able to buy their shares back in the day and the same thing with Apple, Google, Tesla, and so on. Investors who were constantly learning and growing and keeping themselves up to date would have caught that Apple, Amazon, Google, and Tesla wave and would’ve made fortunes by now, and the same thing goes with Bitcoin, Ethereum, and other cryptocurrencies. And the good news is that this trend continues even today. You can still find companies and technologies that are new and emerging which will keep scaring most people but seasoned investors would jump at the opportunity. Another thing about timing and riding the wave is risk. It’s risky to catch a big wave if you have no experience riding small waves, it’s more like gambling in that case and many people will fall straight on their faces. Therefore, start by taking small calculated risks when you see an opportunity and don’t think of becoming an overnight millionaire. Once you are able to learn how to take small risks with the right timing than opportunities won’t scare you as you would have learned to take calculated risks. The best strategy is to risk as much as you can afford to lose. Many people go all in for the greed of making money quickly. So, it’s all about timing and risk-taking, whether you are looking to make passive income through Shares & stocks or whether you want to make passive income through online side hustles. Because you can imagine people who started creating a website, email marketing or making YouTube videos, or Drop Shipping in the mid to late 2000s would have had it far easier compared to now. Therefore, the conclusion is to choose your passive income strategy and then stay in that market and engage yourself to learn and grow every day so that when the right wave comes, you would know what you’re doing and if you time it right, you could be riding that wave.
Rule # 5 – The Right Company
What would you do if you want to be good at tennis, soccer, painting, singing, dancing, etc? You will join a tennis club, soccer club, dance club, etc – right? At the same time, what would you do if you want to be an alcoholic, procrastinator, gambler, etc, well the chances of finding other alcoholics and gamblers would be far greater in places like bars and casinos isn’t it? You can also go to bars and casinos and be really careful not to get influenced by such people. The point is whatever you want to achieve in life you want to surround yourself with that kind of people because there is no point in joining a soccer club if you want to be an amazing hockey player. The same goes for generating passive income. By now if you have been reading this post from the beginning you would have realised that there are a multitude of different ways of generating income online both active and passive, so if you want to generate passive income from YouTube, you wouldn’t hang out with groups who are into drop shipping right? Or if you are into Drop Shipping it won’t make much sense in learning how to write eBooks right?
So, by now hopefully, you got my point. Therefore, to ensure you are on the right path make sure you make friends and associate with people who are also on the same path. For example, say you have chosen email marketing as your money-making strategy then ideally, you would hang out in communities relating to email marketing on Facebook, Reddit, Quora, and other online forums where you can learn and meet people with similar interests, and offline you would attend email marketing workshops, seminars, and events. The goal is to be in the zone and more so the right zone! and make friends and associates with people who are also in the same zone. This way you will learn and progress exponentially rather than try to learn and excel by figuring it all out by yourself, imagine how much difficult and painstakingly slow your growth would be.
Conclusion:- As with everything there are no guarantees in life. Do what makes sense and stick to it. If you think the rules for making money explained above are not right then don’t do it, as you are responsible for the actions you take. At the same time if you think it makes sense to have the right company of people, to not overspend, to save and invest, to continuously learn and grow, and to invest in assets that grow over time, then by all means do what makes sense to you. Making passive income online or creating wealth is not as difficult as it might sound. The majority of the people who have no direction in life and are wondering aimlessly from paycheck to paycheck are stuck in the same 9 to 5 job making the same amount of money many years into the job and would of course find it difficult to get out of the rut and do something different instead of complaining about life and finances. However, those who truly desire or those who want to break free and have a strong desire to do so, will be able to succeed provided they put in the effort and create the right kind of environment and circumstances for themselves simply by developing new and better habits. These days it’s easier than ever to find different methods to be financially independent. And more importantly, once you find your niche then apply the 5 rules above and keep learning and working every day until you get there.