We spend fortunes to gain an education but sadly, money is not taught in schools. Schools focus on professional skills and not on financial skills. This explains why professionals and high achievers still struggle financially all their lives. Majority of these people are in the middle-class category hence my focus in this specific group. The main reason people fail to grow financially is that they continuously acquire liabilities thinking they are assets, and that is why it is important to identify a liability from an asset.
The middle class find themselves in a constant state of financial struggle because their expenditure rises to meet the income. To them, a pay rise equals buying a better car, dress, house or spending more.This behavior trend is the cause of today’s rat-race situation.With little to invest, they opt to play safe and avoid risk.They have a number of liabilities to take care of and no real assets that generate income.The only source of income is the monthly salary.
The rich on the other hand have assets that generate more than enough income to cover their expenses and re-invest. The assets continue to grow, making them even richer. We, therefore, need to concentrate on buying income generating assets, and grow them so that we can afford to look at high-risk investments. The following are just but a few measures that can help;
When you are ignorant about the way you handle your money, you will soon part ways. Search for information on how to manage your finances. You can find this anywhere, from books, attending seminars and workshops, taking short courses, and even from reading online.
Reading the book, ‘Rich Dad, Poor Dad’ by Robert T. Kiyosaki opened my mind. I recommend the book to anyone interested in getting rich.
2.Have a Budget.
Failure to plan is actually planning to fail. It is really important to have a budget and avoid impulsive buying. If you don’t budget, you will live for others, especially if you have a compassionate heart. Also, remember to budget what you have and not what you wish you had.
3.Delay your gratification.
There is always pressure to buy a new car, phone etc. Avoid peer pressure and work with a plan. Invest in places where the money will come to you instead. You can gift yourself later.
It is important to save.Many people pay the government through taxes, banks through loans ,personal expenses through rent, food, transport and security. They have nothing left for saving. It is important to have savings. All riches have their origin in the mind, therefore save according to your vision.
If employed, always find an extra source to make money and increase your savings.
5.Make honest money.
If employed, serve your company diligently. Don’t steal from your source of income because law has a way of catching up with you. If self employed, engage in legal businesses and serve your customers well. Avoid gambling and any other quick money making schemes.
It’s been proven that when you give, it comes back to you sometimes even better. Give when you can but don’t be too generous that you are left with nothing. Give to your parents, church, the needy in the society and to projects that are meant to improve mankind’s existence in this world.
Thank you for reading.