Ways to get rich! Wow is it that easy? I just needed to change my money mind set. By the way, God does not hate the rich! If we have faith and obey His commands, God blesses our labor.
I was fortunate to have attended a Go Negosyo seminar organized by the Department of Trade and Industry in Cagayan de Oro City. I learned tons of insights on financial planning and entrepreneurship but one if the lectures that struck was on financial planning basics given by Randell Tiongson, a Registered Financial Planner and then Director of Registered Financial Planning Institute. It was a rare opportunity. It was not open to everyone.
The information he provided was full packed but what intrigued me most was on the secrets to getting rich.It was not a secret after all. He just presented the three ways to get rich:
For many of us, the first two options are out of the question. The third option is most achievable under the following conditions:
The steps on how to get started was very general. But these ideas toying my mind, I concocted my own steps which you could possibly adopt:
Step 1: Track expenses
A mini notebook came in handy. It was difficult at first, but later on it became a habit. The historical data recorded in my notes gave me a clearer picture where my money goes. In another article, I'll show expense items which are seemingly small could add up to something significant drain of your cash flow. These are items you can live without or you can live with less.
Step 2: Set a savings goal
After you have examined your expenses and tracked down the culprits, convert what you have to give up into a saving goal and some more. Automatically set aside the amount into a savings account. You can start with at least 10% of your income after tax.
Step 3: Make a budget incorporating your savings goal:
My new cash flow formula: Income (after tithes) - Savings = Expenses
Step 4: Learn how money works
Learned a lot on this from IMG Wealth Academy seminars. Make the rule of 72 work for you.
Step 5: Start investing what you save
Investing here I come: mutual funds and stocks
We have mentioned the three ways to get rich, but there is only one way which is realistic. For emphasis, it is to spend less that what you earn and invest the difference. Overtime, you will be reaping the gains of your sacrifice by earning passive income which will allow you to enjoy what you want to do in life. Maybe a passion which you wouldn't want to retire to.
I now clearly understood the difference between the two sources of income:
1. man at work (active income)
2. money at work (passive income)
Aside from stocks and mutual fund investing, I am now into building this website which with proper implementation of Solo Build It tools can become another source of passive income when I retire.