Tuesday, February 25, 2020

How The Rich Manage, Grow And Multiply Money (2), By Godfrey Okuigbedi

"When you speak to a man in a language that he understands, it goes into his head. But when you speak to him in his mother's tongue, it goes into his heart"---Nelson Mandela
When it comes to finance, it has a mother's tongue that only the rich and wealthy have been able to fully grasp. If you want to find yourself in that clique then you have to learn to speak in the mother's tongue of the rich.

Unless you were born into a rich family, building wealth can be very hard depending on the path you choose.

Many people look at multi-millionaires and desperately want to know: What is their secret? How did they get there? What does it take?

These are but a few paths to trend to financial freedom;

READ ALSO: How The Rich Manage, Grow And Multiply Money (1), By Godfrey Okuigbedi

1. Invest in financial education

This is very important. As a matter of fact, money does not make you rich per say but financial information. Every now and then you see financial opportunities beckoning on you but you seem reluctant to act upon them meanwhile the financially informed does so without hesitation.
Read financial books, articles, materials. Understand how the economy works and become a natural monopolist. Financial exposure is a key factor.
 In this 21 century, information is a pivot catalyst which has made even teenagers multi-millionaires in United States dollars. Be well informed and take action.

2. The Saver-Investors path
Tom Corley submits that less than 22% of the millionaires in his study chose to take the Saver-Investors path. Not only is it the easiest way to build wealth, but if you start early, it almost always guarantees a lot of money.
The Saver-Investors in his group reached their first $1 million around their mid-to-late 30s, and accumulated an average net worth of $3.3 million by their mid-50s. They also had four things in common:

They typically had a middle-class income (many reached a six-figure salary early in their career, and if they didn't, they lived very frugally.) They had a low cost of living and preferred to save, rather than spend lavishly.

They saved 20% or more of their income; they started investing their savings early in life and continued to do so prudently for many years.
No matter what their day job was, this group made saving and investing part of their routine; they were constantly thinking about smart ways to grow their wealth.
The Savers-Investors path is not for everyone. It requires enormous financial discipline and long-term commitment.

If you save a $1,000 everyday, it will take you about 3,000 years to save up a billion dollars. You can't literally save to financial freedom, you must learn to save and invest concurrently. "You can't change the beginning but you can start from where you are and change the future." -C.S Lewis

3. The Dreamers path
This is perhaps the hardest path to building wealth because it requires the pursuit of a dream such as starting a business, becoming a successful actor, musician, author, et al.
Those who trend this path happen to be the richest because pursuing their dreams are one of the most rewarding things they had done in their lives. They love what they do for a living, and their passion shows up in their bank accounts.

However, they are willing to work long hours and able to handle financial stress. Study shows Dreamers work more than 61 hours per week before finally achieving their dreams. Weekends and vacations were almost non-existent.

Trying to make ends meet was not easy. At first, getting a steady paycheck was "nearly impossible," one Dreamer said. It was even harder for those who had families to support. To finance their dreams, some decided to put off buying a home, while others dipped into their retirement savings.

If you are risk-averse, this path may not be for you.

Many a people want to be financially free but only a few are willing to take risks. Investing is not as risky as poverty is. Poverty is the greatest risk.

Godfrey Okuigbedi, Entrepreneur, Writer and Influencer writes from Delta State,

To place your article for publication, interviews, event coverage, advert and publicity, email us via topflyersmagazine@gmail.com or call us via 08030808671, 07038864995.

No comments:

Post a Comment