For most of us, there is an endless chase for money. To get enough, to have enough invested, to provide ourselves with the financial security – so that we don’t have to work again, or don’t have to struggle again.
Your finances are no different from the rest of your life. Get your car serviced, so it holds its value and is as reliable as it can be. Don’t drink huge quantities of alcohol and eat shit food – eventually, something inside your body will break because of it and you’ll be left with health problems that will stay with your until death – which of course will arrive sooner because of your health.
Everything in your life is about responding to potential events that may or may not happen. You are either doing something to prevent an even happening – proactive action. Or you are not. The passive no action, zen like people will be forced into action at some point because that is how life is. You can only be in the moment inside your own head, outside of that a whole world of stuff is moving, and it’s rarely neutral. Stuff happens and we all need to react or accept the consequences.
Of course, I am not saying that we should be on the offensive all of the time, that we should be like the proverbial coiled spring – ready to react at a moments notice – but you will need to aware of change and preparation for what is coming.
With that in mind, there are two things you’ll will need to adhere to. A couple of fundamentals, cornerstones to this whole thing.
One I’ve said before – spend less than you earn and invest the rest. This simply means making sure that your income is greater than your spending. You will either need to earn more than you spend or spend less than you earn. Read that again, let it sink in.
The second fundamental is always invest in/work towards sources of income.
The more sources of income you have the more secure your financial future will be (might as well say financial and mental future – it’s not possible to have good mental health, living in poverty, really it’s not).
If you have a business, then investing in stock – provides a future income return, you’ll sell the stock at a profit, future income is assured. If you are investing conventionally, then investing in income funds or income-producing assets (low charge ones preferably) means that income is paid to you on a regular basis, once this income is paid, like once your stock is sold. Means you have something useable given back to you, you have hoovered real money from the market place.
In the case of a sale of stock – profit.nd the case of an investment product, income paid cannot be taken away. It’s yours, value has passed from one to another and now you have control of it. No matter what happens to the investment markets, the income paid is in your bank and can now be used to work hard once again for you and no one else. It should be working for you until you spend it.
The more money you have working for you – the sooner you will be able to claim independence from the work/pay/spend existence.
Provided you get these two things right then you make your money work for you and then you can start to move to becoming the independent person you need to be, you can start to live and work on your terms.
Get in touch when you are ready to get a wriggle on with some of this.