![]() Banks don’t store your money in the vault. When you save $1,000 in the bank, you are simply giving your $1,000 to the bank to put it to use until you need it. You see, currency, which is what we call money, is not designed to be kept. If you are able to master the skill to make money and are good at keeping much of what you make, this is where you move unto the grand master of wealth creation skill making your money work for you by investing it. ![]() You must develop the skill to grow money. Not that smart right? This is why being able to keep money, while important, is not enough. If you also consider the naira to dollar exchange rate over this period, man, you have lost big time. That may seem like a smart way to handle your money but when you factor in the average inflation rate of 12 percent, you’ll discover that you actually lost 9 percent of your money every year. In 2020, you would have saved a total of N12,000,000 and gained a total interest of about N4,506,000. For instance, if you live in Nigeria and saved N50,000 every month from the year 2000 to 2020 in a bank with 3 percent interest. In fact, just saving money is the easiest way to lose money. Basically, you keep your expenses below your income.īut you cannot get wealthy from saving money. This may be 10%, 25% or 35% depending on how much you earn and your personal responsibilities. You have to take the responsibility to keep a percentage of the money you earn. Robert Kiyosaki in Rich Dad Poor Dad calls this ‘pay ing yourself first’. It is about your ability to say no to social pressure to choose to live below your means so that you can keep more of your money to yourself. In fact, it’s a dangerous trap to earn a lot of money if you lack the ability to keep it because once something happens to your money source, it becomes impossible to keep up with your lifestyle.Įarning money is about your ability to prepare, position and take advantage of opportunities but keeping money is more about mental strength and ability to defer gratification. It doesn’t matter how much you earn per month if your income is almost equal to your expenses, you are not financially intelligent. But it’s common to hear about high earners who went broke as soon as they lost their ability to earn. It’s admirable to be able to earn a lot of money. ![]() “It’s not how much you make but how much you keep?” This is where the second level of money skill comes in. The problem is that it doesn’t matter how much you earn if you cannot keep it. They adjust their lifestyle as their income increases. Unfortunately, earning money is where most people’s financial intelligence stops. And if you stop working, you stop earning. It’s easy to feel wealthy when your earning ability grows but being highly paid is not the same as being wealthy. The more you learn in your field and the more exposed you get, the more money you can earn. The point is that if you want to earn more money you have to increase your options and the value you bring to the table. ![]() If you are good with music, you can create soundtracks and edit audio files for people. If you want to sell tangible products, you can register with ecommerce websites and start listing products to sell. If you have compelling writing skill, for example, you can offer freelance writing service. If you have a job, you have to develop your current skill, find a higher paying job or start a side hustle to earn more money. To earn more money, you have to keep improving your value in the market place and finding out profitable opportunities. We all want to earn enough money so that we can stop worrying about paying bills and other financial obligations. It is also why many people become self-employed or start a business. You want to earn money so that you can make a living. This is the reason 99 percent of people went to school to earn more money. ![]()
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