WHY THE RICH GET RICHER?

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THEY DON’T WASTE ANY MONEY

The idea of saving money is a boring idea of becoming rich.

Honestly speaking, this is the only way to do it – unless you have something up your sleeve (rich family), then you are at the wrong place.

It’s the only way because it does not matter how much money you make, but if you’re someone who does not spend or invest wisely, you’re not gonna end up becoming rich.

Look at some of the rich and famous people who made millions (or billions) worth of dollars, but ended up bankrupt. How is that?

It doesn’t matter how much money you make as long as you don’t know how to keep it.

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THEY LOOK AT THEIR NUMBERS DAILY

I personally know entrepreneurs who rarely look at numbers daily.

This is a bad habit.

Numbers don’t lie. It gives you a quick insight on where does your business (or personal finance) will end up heading.

This may sound trivial to some – reality is, knowing the figures gives you better understanding of your financial situation so you can make better decisions; short and long term-wise.

If your sales increases, look at expenses you did that made sales go up.

If your sales hit rock bottom, look at ways to cut your expenses that don’t seem to support sales.

And so on. You get the idea.

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THEY WORK SMARTER, NOT HARDER

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The idea hard work equals results no longer applicable these days. And the rich know this too well.

Yes, you still need to put in the effort – but it needs to be smart effort.

If you’ve been doing the same thing over again without much results, the answer is not to do more of the same thing.

Instead, you should start finding alternatives.

This is why successful people often continue to learn and be adaptable; so they can easily adopt new ideas or methods to get results.

THEY MAKE THEIR MONEY WORK FOR THEM

People often like to say rich people are lazy. It’s far from the truth.

Rich people know that they don’t always want to work and not to enjoy the success they have accomplished.

So, they are always on the move to make their money to do the work such investing in companies, stocks and so on.

This is how most rich people stays rich despite of always looking like they don’t work at all.

There’s nothing wrong with that. Who wants to work for their entire life?

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THEY VALUE MONEY MORE THAN OTHERS

There’s nothing wrong about valuing money more than everything else.

You worked hard for it. Of course you’re going to value it more than most other things.

If this doesn’t sound like you, then you’re going to have a hard time to get rich – or to stay rich.

Most people like to spend money every time they get paid. They like to spend on things that don’t make much sense.

They don’t save and invest. How can they?

This spending habit will leave them constantly living paycheque to paycheque; ends up having to work for their entire lives.

Rich people, on the other hand, knows how money works. They don’t spend their earned income.

Instead, they save a portion of it to invest. Once that investment bears fruit, only then they’ll start spending.

This is why rich people value money more than others.

THEY BENEFIT FROM HAVING GOOD CREDIT

I don’t think it’s necessary for me to talk in depth about having good credit, do I?

In short, good credit means easy access to financial loans, government grants and so on.

Access to such financial support is crucial if you wish to own a house, start a business et cetera.

Let’s move on. 

THEY DON’T KEEP UP WITH JONES

There is a saying that “Poor people like to talk about others, while rich people like to talk about ideas.”

No. I did not say it.

But I can support by talking from my experience itself.

If you pay enough attention, people who are doing well (or well on their way) rarely talk about others. We rarely gossip.

On the other hand, when I talk to average folks, they seem to prefer talking about things that don’t benefit.

Sometimes, I can even sense envy or hate (or both) in these conversations – which is another tell-tell sign of a person who will struggle in life. No offense.

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THEY PRIORITIZE SUCCESS OVER LEISURE

This does not necessarily means you should enjoy less leisure time. Nobody wants that.

Instead, create tasks and schedule them where you will only work around specific time and day(s).

Then, use the remaining time (or days) to enjoy some leisure activities ONLY AFTER YOU’VE COMPLETED YOUR TASKS.

This is what I mean by prioritizing success over leisure.

CONCLUSION

For closing, the most important thing is to, quote Nike ‘Just Do It’.

People tend to read and think a lot. We like to, sometimes, even over-complicate things. DON’T.

Just do it. Full stop.

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Why I Disagree With 50/30/20 Rule In Budgeting

What’s up future millionaires? I’m gonna share with you the reasons why I don’t like the 50/30/20 Rule.

For those who are not familiar with it, the 50/30/20 rule represents how much you need to spend based on needs, wants & savings respectively.

While it is good that people are finally taking more care of their personal finances with this rule, I feel there needs to be more adjustment.

Create 40/10/50 Budget

I personally don’t like the idea of the 50/30/20 Rule.

The ’50’ needs should be reduced, for example, try staying in a cheaper apartment, or rent out a room in your house to reduce your monthly installment.

My personal view is that the 30 wants also needs to be reduced. Avoid from spending on luxury goods – or try to reduce spending at least. Sacrifice today so you can leave a better life tomorrow.

Instead, add more into the savings/investment. This increases from 20 to 50 giving you a lot of cushion for investment and money for emergency.

Therefore, I feel the 50/30/20 rule should be re-introduced as 40/10/50 instead.

When I was in my mid-20s, I worked while doing my studies. Even then, I managed to save up to 80% or sometimes more from my income. Most of that savings are put into investment. I could do this back then since I didn’t have much commitments. That was about 10 years ago.

The reason I’m sharing this is demonstrate to you that the Rule is also time dependent. If you’re a single bachelor, it’s always the best idea to put more money into savings/investment since there aren’t much monthly commitments for you to make.

My Final Two Cent

My final two cent? Don’t get too caught up with the 50/30/20 Rule. Use it as your guideline. My rule of thumb, try your best to have higher percentage for savings/investment.

I know not able to spend money on your wants sounds terrifying after hard days of work.

But this is only temporarily till you can live on dividends alone – which you can loosen up the strict spending then.

Let me know in the comment section below if you feel otherwise. Cheers.

One Secret Quality to Become RICH – Honest Truth

In today’s article, I’m going to share with you the one skill which is important in order to become RICH.

Becoming RICH is a subjective matter as there are hundreds, if not thousands of ways to achieve it in these modern days. However, many would agree every success comes down to one important quality which is ‘Sacrifice’.

TO SACRIFICE

To put it simply, without ‘sacrifice’, ‘nothing’ can be ‘achieved’.

Without ‘sacrifice’, no ‘budget plan succeeds’.

Every ‘budget’ plan requires you to ‘cut down spending’.

So , say goodbye to those ‘expensive Starbucks’ drinks. Or to that delicious and healthy ‘Avocado toasts’.

Without ‘sacrifice’, no ‘investment’ can bear ‘profits’.

Every ‘investment’ begins with you having to ‘put aside money’ which you ‘don’t have access’ over a period of time.

Without ‘sacrifice’, no ‘self-discipline’ can be achieved too.

Every ‘self-discipline artist’ knows what it takes to achieve a ‘higher state’ of being able to ‘control’ self from ‘spending’ unnecessarily.

So, you’re probably wondering “How can one achieve a higher level of ‘sacrifice’?”

My short answer is to ‘Travel’.

When I say travel, not jet setting in ‘first class’ seats, or staying in a ‘5 star hotel’.

What I mean is to travel to isolated or remote areas where access to modern world is limited.

You see, the problem with human beings these days is not because we can’t live without technology.

That’s completely untrue.

Human beings have been living without much technology for most of our history. We have strive in wilderness back then, so why not today?

By exposing ourselves to such difficult conditions, we can learn to rely none other than ourselves. We learn that it takes some level of sacrifices to go through the day.

We start gather wood for fire & cooking. We gather water early in the morning to stay hydrated throughout the day. We even begin to forget the access to internet.

Guess what happens when you return? You’ll no longer see the benefits of owning things which are no longer essential to your survival. You’ve become accustom to it.

Personally, this is the best way to learn.

MY TWO CENT

While some argue this method is unnecessary. I argue, unless you’re a natural frugal person, I believe practical experience matters most and that some times, drastic actions are necessary to achieve higher level.

Once you’re accustom to a higher level of sacrifice, you’ll start living differently. You spend on things you only need & skip unnecessary spending without hesitation.

With such quality, any budget plan becomes easy to follow. And any investment becomes easier too as you are able to put more money into it.

That’s it from me. I hope you guys learn something from this. Let me know what you think in the comment below so we can start a healthy conversation about the topic.

Happy Weekend.

 

 

 

How The Rich Spend Their Money And Why You Should Start Doing It Too

Is it true that the rich spends differently than poor people?

The answer is Yes.

Today, I’m gonna share with you how the rich people spend their money and why you should do it too.

Poor People

Lets start with how poor people spends their money.

For poor people, when they receive their paycheque, lets say at $10,000 for demonstration purpose, they’ll immediately use the money to pay off their monthly bills.

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$5,000 into paying things which are necessary.

$4,000 into buying things they want.

$1,000 into savings (if lucky).

So whats wrong with this?

At the end of every month, poor people often ends with networth of about $1,000 if lucky.

This is what the line ‘Live paycheque to paycheque’ means.

Successful People

Successful people, on the other hand, when they receive their paycheque, spends differently.

Firstly, successful people have different philosophy when it comes to money management.

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They’ll put aside 30% for monthly commitments such as mortgages, car loans, etc.

And the remaining 70%, they’ll put aside for investment. Some successful people are even rumored to be able to invest up to 90% of their earned income.

0% will be put aside on things they want such as luxury goods or eating in restaurants

Once the money invested bears profits, they’ll use 10% from the dividends to buy luxury goods and so on.

In this way, their total networth remains between $6,000 – 7,000 plus dividends.

Now imagine they repeat this spending habit for years to come – this is the secret to true wealth.

My Two Cent

It’s clear, successful people spend with a long term plan in mind.

They continue to add more money into investment to be able to grow their net worth and also able to live off dividends alone

They know earned income is not permanent, therefore, don’t rely on it completely. In case of economic downturn, they’ll always have cash to rely; such as their other sources of income and savings.

On the other hand, the poor relies completely on their earned income. If they lose their jobs, they have nothing else to rely on.

Let me know what you think about the article in comment section below. I’d really like to know what you think about it

Keep grinding and hustling. Don’t forget to execute!

3 Signs That You Will Become Rich One Day

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Ever wondered if you’re going to be a millionaire some day? Well, here are top 3 signs you’ll know you’ll be rich one day.

1. You always shoot for the moon

You know how the saying goes, “Shoot for the moon. Even if you miss, you’ll land amongst the stars.”

If you’re the type of person to strive for an A when you only need a B to pass the class, you have the mindset of a millionaire.

On a mission to become rich, shoot for $10 million, not $1 million.

Take a look at the successful billionaires of world, for average human being, it might seem like these successful people are out of their minds to be thinking of something out of the norm.

While no one achieves a 100% rate of successful attempts at running business, all it takes is for a single business idea to strike big like Dallas owner Mark Cuban often advises “All it takes is to be right once.”

Continue to think big.

2. You maintain an open mind

You are not afraid of new ideas and know that closed minds do not inspire faith, courage, belief and active imagination.

Successful millionaires change their psychological approach to money, success, and happiness.

“The person with a ‘closed’ mind on any subject seldom gets ahead,” writes Hill.

On the flip side, the wealthiest, most successful people are constantly seeking feedback and looking for ways to improve.

That’s why so many business leaders, including billionaire Richard Branson, claim to have never “made it,” despite their wild success.

3. Invest whatever you can

Being rich is not a question of one’s ability or fortune or even a sense of entitlement.

The question of why one is not wealthy can in most cases be simply attributed to the fact that they are not being investors.

Most times we think a large sum of money is required to start investing.

On the contrary, there are actually a number of investments out there that give good dividends for small amount of money. It’s all a matter of searching these investments out there. This is where being open minded helps. Always be open to new investment ideas.

I made a mistake of not investing in Bitcoin back when it was in low $200/unit. I did invest in it, but it was in small amount because I wasn’t too keen on the idea. If I had maintained an open mind and did my research about the blockchain technology behind it, I would have poured more into investment.

In fact, how much you save and invest is oftentimes more important than than the size of your paycheck.

My Two Cent

Now, you know the signs of whether or not you’ll be rich one day, start adopting this mentality to be another step closer to become rich.

Remember, there is no shortcut and if anyone tells you that, is just looking to sell their product! Thank you for watching and I’ll see you again. Keep hustling!

8 Things Poor People Do That The Rich Don’t

To become rich, first, you need to stop doing things that make you poor.
In today’s article, I’d like to share with you the 10 things poor people do that the rich don’t. Let’s do this.

1. Poor People Focus On Saving

In truth, if you’re broke you need to make more, not save more. One of the things poor people do is stress over money.
On the other hand, rich people see it as a tool, a resource that can be used to get to where they need to be – which is to make more money.
Saved money does not grow, you need to put your money to work, don’t squirrel it away for when you’re too old to live your best life. Put into investment that gives good returns if you find the idea of running business is too challenging.

2. Poor People Get Paid Based On Time

It’s important to grasp that results are the real currency of the world, not effort. For some this is a shocking revelation.
It does not matter if you are the best at your specific job. If you are not contributing to the bigger picture you will be seen as just another number.
Don’t be afraid of making big moves, shock everyone and change the world.

3. Poor People Blame Others 

Don’t fall into the blame trap. Blaming external circumstances take away your power!
No matter the challenge, it is your responsibility to change it.
Rich people gain self confidence from knowing that their lives are in their own hands if they want better lives, they do better. Stop blaming, start acting.

4. Poor People Think They Have All The Answers

If you ask a poor person why they are poor they will give an answer or rather their belief, why they are poor giving mostly excuses. I may sound harsh, but if you listen, they never really talk about what they should have done, instead, they give reasons which they believe are valid.
One of the things poor people do is talking about other people rather than ideas. They’ll say they are not lucky or even go further to say rich people become who they are by lying and cheat. Poor people tend to be highly-opinionated about anything that is outside their realm of influence.
Rich people are continuously learning, continuously growing and stepping out over their own boundaries in the search for self development.
What’s worse than people than have an opinion on everything?
People that listen to them! It does not matter how perfectly you do things or how successful you become there will ALWAYS be haters.
Haters will drag you down to their level if you let them, that’s all they want, to feel equal.
Put the blinkers on, don’t look back, you’re not going that way.

5. The Rich use their time effectively

Poor people spend a lot of their time doing activities that do not bring any value. Browsing facebook, watching television etc.
While watching celebrity gossip might be interesting, it does not bring any value or benefit to you. It does however benefit the rich celebrity who instead of watching TV is on TV.
They are creating more content (gossip) while the poor are consuming it.
Of course not all media is bad, there are educational books, TV shows etc. And sometimes you need to simply disconnect from the World. That is fine.
However, if you are spending a lot of your time consuming mindless content, it could be a sign of something going on in your life that you do not like.
The rich and the succesful work on their growth, their mission and their problems first. Only then do they possibly consume some entertainment.
 

6. Poor people try to look rich

How often have you seen people trying to impress others with the things they own, the new car, the latest phone.
They are trying to look rich to impress those around them, even those that do not know them. These things are meant to show how succesful they are. How rich they are!
In fact, Poor people spend more on trying to look rich instead of working on actually getting rich. And, all of that stuff that they spend money on is holding them back.
These things that they are buying do not bring any real value. These things become a burden, you have to keep working to afford these luxuries.
How often do you see these type of guys ended up selling their expensive cars or homes? You know the answer to that.

7. Poor people don’t look at the bigger picture

While it is a good thing to be present – focusing on future goals is just as important. Truth is, poor people often lack to look into the bigger picture – or the future.
Focusing the smaller picture, or to focus in short term goal, it lacks direction which is an element to failure.

8. Poor people do what everyone else is doing

Lastly, this may sound arrogant, but in reality, if you do what everyone else is doing, you’re mostly gonna end up like EVERYONE ELSE – broke and average.
If you wish to become rich, you gotta do what the 1% does – which is to take road less traveled.

Ending

That’s it guys for today. Let me know what you think about the article and tell me if you think I’ve missed something.
Thank you for stopping by and see you again soon.
Happy weekend! And don’t forget to Execute.