Category: Saving Money

Financial Independence – Making your money work hard.

 

March 2018 Money Trainers – what is it you have to do in order to become wealthy?

 

Try sitting down in front of a financial advisor let them make a plan for you and sit back and wait for the riches to arrive.  If that was how it worked, we’d all will be doing it.

 

Of course that’s not the case, that is now how it works.  There is no way that a simple meeting or many meetings with any financial advisor can either make you wealthy.  

 

Sure they may add some value over the longer term but the reality is you need to be better at money than the adviser. Look, who cares  more about your money them or you.

 

There is a whole science that goes on around money and it’s a science that most financial advisors just don’t understand.  See if you know how to make money based on your own knowledge, your own skills – your own ability it’s possible for you to effectively own a  money making machine that you switch on and off whenever you want. Or as the wealthy do, keep it running.

 

Of course it’s not that easy, if it was we’d all be doing it but with a few skills and the use of modern tools it’s possible for you to get your money working for you today and tomorrow and the day after. That’s what rich people do, in order to become wealthy or as I like to say financially independent they get their money working for them and then it starts to become a fully working,  money machine.

 

People become wealthy because no matter what they do with their lives – their  money is working for them in the background. What happens with most people is they trade their time for money – you give your time up to a business or do to a job in order to get money. You then take some surplus cash – savings and then put it in a bank or a building society.

 

Your money then works hard for the bank and does little for you.

 

If you want to know how hard it’s working for them, take a look at these recent rates.

Deposit interest rates of .15%

Loan rate – lending your money to their customers.

In this short article, you now now know that Santander are making more than 22 x times more lending your money, than they are paying you.  Let me know how that feels.

Of course, you can do something about it.  Get in touch today and I’ll send you a couple of my recent reports. No obligation, your information is not shared.

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Why the rich are rich?

 

 

 

You will need to do things differently – if you want a different result from your money!

Over the last couple of years I’ve looked at exactly what it is that makes the difference between
those that are incredibly wealthy and those just getting by, the J-A-M’s as Theresa May called them.

Whilst there are considerable differences in the overall wealth the are some fundamental differences between their approaches to money. I’ve been studying these for a number of years and the conclusions I’ve arrived at are interesting. There is no right or wrong answer in this short article but it does seem to concur with a lot of the research that’s already out ‘there’.

When talking to and commenting on those very wealthy people I’ve had contact with I have only included those that are self made, ignoring those lucky enough to have inherited wealth.

Mindset, money and the medium term future.

Two aspects of modern life will change a lot in the coming years, one is the death of the high street as we know it and the second part is technology. These changes will be profound, yet with some effort and a little knowledge it should be possible for everyone to have a share in the future, to have a seat at the big table, where the party’s at.

No matter how far back in time you want to look, you’ll note that the system of capitalism favours those with the available money and those that can move fast – in 2018 everything is moving faster, which is why there are so many millionaires and billionaires. I suspect that the pace of change will be even faster in the coming years.

The changes have always made the rich richer and the poor, poorer. The evidence for this is all round us and I don’t for one minute think it’s going to get better without a nudge. I do accept that there is enough money to go round, enough for everyone.

But I don’t believe that it should be taken from the rich and given to the poor – that does nothing for them long term, except make them dependent.

It’s all about the process.

Wealthy individuals broadly accept that becoming wealthy is a process that can be learned by anyone, whereas poor people make the assumption that the rich have a secret that no one else knows.

Understanding that a pound spent never comes back. Wealthy people spend their money more slowly than the poor, they don’t buy stuff unless it’s really needed and then they often look for value.

Either way they take a longer time to  buy. No money is ever spent on impulse and they always shop with a list and never ever buy things that aren’t already on their radar as something that’s needed.

Making your money work hard.

By understanding about money and how it really works it’s possible to make it deliver for you. Most of us that work for money (sell our valuable time) end up having to wait until we are half dead (retired) before we can slow down or start to enjoy our hard earned cash. Yet, there is a class of people (let’s call them the rich) that seem to enjoy their investments, or at least the returns on their investments well before being half dead.

They do this by investing on smarter basis than the poor, obviously. The rich, use models of ‘asset allocation’ or spreading their risk and invest for income not capital growth – they also take a lot less risk with their money.

The poorest amongst us tend to think that ‘they’ll be lucky’ so speculate more on lottery tickets and other forms of gambling. Whereas the wealthier tend to avoid this kind of investment as being far to risky.

No matter how much money you have/don’t have you should never take a risk with all of your money. That’s the  quickest way to the poorhouse.

Spending less than you earn – therefore making sure that you don’t need to borrow.

No matter how little you borrow – you are mortgaging your future income. Cash that you are trading your life for is being soaked up by a third party – the lender. If you are borrowing to purchase something that goes up in value – like a house or precious stones it makes sense to borrow.

However borrowing to fund day to day spending or to buy stuff is a guaranteed way to future unhappiness.

Having a focus on a money education will help

What you don’t know, you don’t know.

By design we are not able to manage money, it’s not something we are born with. You will need to get  educated about money if you are to make it work for you. Your parents probably don’t know how it works.

The better educated you are about money, the more you’ll understand it; the more you’ll make it work for you.

By following these basic steps it seems that whatever happens in the short to medium term your financial independence is  assured at some point in your lifetime. It really is.

Understand, that having a steady income from assets allows freedom from work. Even if it’s only a small amount.  You’ll get time freedom to use as you want, could go be used to deliver a better political system, to allow time to clean up the environment.

It’s obvious that the current system is not working, not delivering for all. And with the rich in charge of the systems – and they are in charge we will only get more of what got us here.

For more helpful insights in this area of your life, get in touch, the more you know
the more you’ll make.

Richard – Chief MoneyTrainer aka The Pitbull of Personal Finance.

If you’re a JAM then read this.

Money seems to be a problem all over the world, and despite the fact that it’s a problem for many, a lot of people seem to do very well with it.

This is something that has driven me on for many years, just trying to find answers to the big question – – why do some people live on the edge of the money thing – Theresa May called them JAM(s) just about managing- and others end up growing a pile so big they could never spend in several lifetimes let alone one.

For me, I believe there is enough for everyone, enough money to go around. But at the moment the money that belongs to the JAMS is in the hands of someone else, solving this conunmdum is what Moneytrainers is all about.

We all work a similar number of hours in a week in order to obtain an amount of money that’s enough to survive on, this is then taxed and spent with whatever is left going towards keeping us alive.

Those lucky enough to have some money spare end up saving it for use at some stage in the future and if you understand a few basic rules can actually start to make this money work for you.

Once you can make it work for you ( leverage) the more leverage you can get the more freedom you’ll end up with. Financial Freedom – FI.

I call this leverage principles. Once you know what they are, and start to make them work for you — money won’t be a thing for you, it’ll be something that gets you the life you want, importantly the life you deserve.

I’ve dedicated my future to making sure everyone that want’s to know these principles, can.

For the moment do this this simple excercise. Take a pound out of your pocket, look at it.

Understand how it arrived with you, how you earned it.

Think about how much of your life you traded to get it, how much tax was paid before you got your hands on it, understand that £1 in your pocket means you would have actually traded some £1.30 of your life to get it. If you have travel costs you’ll actually be spending somewhere in the region of £1.50 – £1.60 to get that pound.

You have traded time in your life in order to earn £1.60 but actually because of the system you only get £1. That’s why leveraging your money is so important.

This rule applies if you are employed or self employed. If you don’t apply leverage and simple principles of money to your life, you’ll never have financial freedom.

Next time – what are the rules.

Richard Smith – Financial Guru to the Stars of Stage and City and Business Development God.

https://www.moneytrainers.co.uk https://www.therichardsmith.com

Saving Money Made Easy

Often we sit back and ask where is the money I’ve earned? Has it really slipped through my fingers and disappeared into the ether?

Of course it will if you don’t manage it. Which is why saving cash is so important. The only sure way to really know that you’ll have money in the future is to make sure you save some. Problem is saving money is a bit boring, just a little bit pants.

So here is an easy hack, a tool to help you with that.

Today I want you to no spend £1 – either purchase a reduced price similar item or don’t buy it at all.

Tommorow  do the same for £2 and then the day after for £3, carry on all week. Once you get upto £7, start again on the £1.

The idea is to make this a habit and to do it consistently.

Save the money in a jar or use a micropayment app to move the cash.