The Laws that Govern Personal Finance and Wealth Creation
Riches is one thing that a lot of people dream off, work for, and live for, maybe only a few will deny this. There is a saying that “I prefer to die trying to be rich than die poor”. The impressive thing about the economy of money is only a few can save it, it is always bent around earning and spending as the economy encourages spending, so you spend it as you earn it but a lot of people are looking into how they can invest their money and make the best out of it and I will be showing you a few money tricks not as a magician but from the financial world.
Simple disclaimer: Do not take anything I say here as a financial advice, I am not a financial advisor. Communicate with your financial advisor and attorney for financial advices and financial laws.
The Best Time to Make Money is in a Crisis
The different between the rich and the poor is that the rich utilize every opportunity they see, and a crisis is the best time to invest at a cheap rate. Warren Buffett says that being greedy when others are fearful and being fearful when others are greedy is one way to make riches. When there is a crises, businesses shut down, there is massive retrenchment, salaries are slashed, stocks tanks, and a lot of things go wrong, this is the time when the rich start to pull their strings and gather around to get things cheap while they wait for the economy to balance itself.
Money is about Buy and Sell
You are either selling one thing or you are buying one thing, but in both cases, money is exchanged. So many people earn money by selling time and intellect, others make money by selling products and selling what people need but, in both cases, money is made. As an employee, you are selling something to get paid after, as a business owner, you are selling something to get paid. Money is a game of buy and sell.
Money Invested attracts Money
When you make your first million and decide to invest into a business that will fetch you another million, then your money will attract more money but money sitting in the bank is of no use as it adds little value which will either equate to the current inflation rate or lower than the current inflation rate. Investing isn’t magic and it isn’t a sure way to make billions at once, it is a gradual process and you should see a financial adviser for help.
Getting Money is not the problem, maintaining it is
Just like it does not take much effort to buy a car it takes it to maintain it so is it for money. Growing money is maintaining money. Making a million does not mean you have a million in cash or in investment. The fact that a person earns $1 million yearly does not mean they will not go into debt. It is how much being made but how much being invested and generated.
The Higher the Risk the More you can Make Money
If you are willing to make money, then you must be willing to take risk. Investing is taking risk. There is no guarantee that you will get your capital back less your profit. Investing is working on time bomb which will either blow to become large profit or large loss and that is what money loves. I do not mean you should invest in unreasonably risky businesses; you are to take calculated risks and make good use of them.
Final Thought
Money is one topic that a lot of us keep learning everyday and the better we understand and work it, the better. Money will not stay with a spendthrift.
Money lessons cannot be overemphasized, a lot of people make money but they lose it very fast to the absence of knowledge to spend.
Money + knowledge will result in a long time of enjoying the wealth attained.
Money spent is gone with no hope of returning to us but that is not the case with money invested, there is still hope that it might come back to us.
Very true, once the money is spent it cannot be gotten back except in the value of what the money is been spent on.
I agree with you, I also want to say that who thinks he is poor will always remain poor, a matter of mentality.
Asides money, wealth is also a thing of the mind. Some people have so much money but their mentality has kept them at the back.