They also tell us that money isn’t important. That it was sent to the Earth by the devil himself and so on. I’m sure money can be a completely good thing.
It’s important in what way we’re going to earn money and what attitude towards wealth we’re going to build and what we do with it.
People who win major jackpots on the lottery have been studied. Winners became millionaires overnight. They were overflowing with happiness in the first couple of months. They bought many things, drove new models of cars and moved to prestigious villas. In a number of years they ran out of money and ended up on the street. Their debts at the bank increased, they went bankrupt, fell into depression and became even unhappier than they had been before they hit the jackpot. The bigger the jackpot, the harder the fall. According to statistics, the majority of such people go bankrupt in the first few years. So, the lottery isn’t exactly the right way to earn money. If one is of course lucky enough to win such a huge prize.
- they didn’t earn that money honestly,
- they spent all of the money, instead of investing it,
- it’s simply too much money for them to manage fairly with their current knowledge and skills.
Besides gamblers, the same category also includes: thieves, criminals or businessmen earning money through scams, pyramid schemes (deceptive investment plans) and others. Sooner or later they fall to the ground with a big fat zero on their account.
The path is all that matters! You have to earn money by working hard, step by step, and not overnight. With knowledge, skills and fair, comradely relationships. No shortcuts.
If you want to earn more than an average salary, you have to offer the market more than the average.
Do you have an idea for a start-up company? Can you offer people something new and useful? Maybe your knowledge, experience, services? Start now! Think of what’s holding you back and start to work to change that. You mustn’t only dream as you’ll stay a dreamer forever. If you don’t try, the answer will surely be no.
Don’t try only once. Try and strive for it as long as you don’t succeed! Regardless of your age, gender, origin, attained knowledge, finished schools, etc., even though the media teach you the opposite: that you need this or that to become successful.
Do well with a positive and kind attitude towards your clients. If you persist, there’s no reason for you not to succeed. Offer your services or products with new or better features and you’ll succeed even faster. What’s the key to success and as a result also to money?
- Passion for work and persistence,
- positive attitude towards work and friendly attitude towards clients and work colleagues,
- enthusiasm making you go on working hours and hours without strain,
- vision and objectives (short- and long-term).
Think widely. Because as soon as you limit yourself, you’ll stagnate there. If you think widely, you may not create everything from one day to the next at the beginning, but you’ll gradually achieve your objective subconsciously. Become open to new ideas.
By thinking widely and being open to new ideas, they’ll all start to arrange themselves towards the final objective. In doing so, it’s important to believe in yourself! Choose an objective which is hard to achieve and aim high. Of course, there will be many a fall at the beginning but consider them a part of learning. Enjoy every step you make, even the ones at the beginning, which will put you down. Life puts you to the test. The persistent will make it. When you are down, pick yourself up. Show life that you’re impossible to be held down.
Money will certainly follow. And you’ll have exactly the amount of money corresponding to your value on the labour market. If you deserve too little at your current job, ask yourself why. Do you work more or less at your job than you are supposed to? Maybe you’re doing a great job and waiting for a raise. Your boss won’t come to you and ask you if he may offer you a higher salary.
Are you limited by a lack of knowledge or skills? A day has enough hours. Plan your day in such a way as to have time to learn and train every day. No excuses.
Higher monthly pay, a higher hourly rate is what you are fighting for, not more working hours. Enhance your value on the labour market in terms of responsibility and trust. In almost every company or organisation, the employees are ranked according to a scale regarding their responsibilities. It’s up to you to move up. Have you run out of steps at your present job? Find new steps in another company or think about opening your own company.
What else is important in earning money?
Hard work. Persistence. Reliability and accessibility. Knowledge and experience. Ideas which are realised in practice and beneficial to end consumers. Location isn’t as important as it seems at first sight (however, you’ll find it hard to sell ice cream in the Antarctic), but in such case you can move any time. A kind attitude towards customers and all living beings.
Life challenges us all the time. In all areas. It’s not simple. In any case, it’s hard when looking at it from this angle. It’s hard to pay the electricity bill and make a living, if we don’t have money. On the other hand, it’s hard to develop ideas, develop yourself and try the limits of your abilities for hours and hours. In both cases it’s hard in its own way. However, I hope you opt for the second option.
No matter how much money you earn, ask yourself:
For how many months can you make a living in times of crisis without letting go of your current standard? Let us take for example a job loss, decrease in demand in a company, inability to work, accidents or other factors. Is this one month, two or three, maybe a year or more? Are you thinking of taking the direction of financial independence?
In practice, there are as many ideas on how to allocate income as there are people on the Earth. In case you suffer from a lack of money, then I suggest you change and improve something. I first came across the formula of how to allocate income in the book entitled The Richest Man in Babylon. A similar thing is also proposed by the author Jim Rohn. The author suggests allocating each euro we receive somehow like this:
- 70 % for expenses, food, residence, schooling, fun, our own use, etc.
- 10 % for active capital,
- 10 % for passive capital,
- 10 % for charitable purposes or interesting projects, where we don’t expect our payment to be returned.
The proportion can, of course, be set by each individual according to his or her income and personal philosophy. What’s important is the idea of creating a wheel which would provide us with money even when we sleep, that a euro or two stays on our current account, that we receive money every month from various sources and that we generally live without taking care of our finances. At the same time, we can’t be selfish and have to return some of our money back to society. Perhaps to those projects for which we don’t have time or to those which we donate for charitable purposes, to young families or to those in need.
The difference between active and passive capital is in the way of making money. With active capital, the money that we allocate to investment will be changed into profit by ourselves. This can be done through our company, by opening a new online shop, buying products from abroad, which we’ll sell thus making a profit locally, by investing in saplings for an orchard or anything that we can improve, invent, create, offer on the market or sell to final customers. By making a profit.
On the other hand, with passive money making, the profit will be produced for us by others. Perhaps we lend the money and we get it paid back with interest. Here, it’s desirable to get the money back, of course. Or if we invest money in other companies. It’s very important not to rush wildly into investing or lending money all around. We should invest it in companies and ideas, the activity of which we have at least some knowledge of. Namely, the more we know the field, the more profit we’ll be able to make. Knowledge is the key. In doing this, we have to take a little risk as there’s no assurance anywhere that the input will be profitable. We can lose all the money. During the time of gathering experience we certainly will lose some. But this isn’t money we’re going to miss, is it? This is money allocated to that risk. Perhaps there will be five investments which are loss-making while the sixth may cover all retroactively and generate a profit which we’ll receive in our bank account every month. This would somehow be great, right?
Let us think on …
The more various sources of income we have, the more stable our financial situation will be. For the majority, their only income is their monthly salary. You can earn fifty thousand a month, but you’re far from financial security if you have a mortgage for a huge house, high costs, a rented yacht and luxury cars. You spend the other part of your monthly income on luxury items, prestigious restaurants, brands, various subscriptions, gardeners, assistants for maintaining the house and heating the pool. At the end of the month you spend your entire salary. None of these things (or people) is making your money come back, isn’t making a profit. The cycle will be cut off the moment you lose your job or your current source of income. According to Murphy’s Law this will happen precisely when you least expect it.
Advice: Always live the standard far below your financial capacities. Even when society dictates you live the other way; that you need elegant clothes, expensive cars, trademark products, valuable watches, jewellery and similar pointless things, you’d better avoid this. As far as possible. Your wife might not exactly be thrilled with that. In any case, consider this as something temporary. When your income increases, you can raise your standard. However, you should raise it only that much that the standard will never rock your financial situation.
An average consumer spends more than one hundred percent of his money per month: How more? He constantly borrows money, raises loan, pays interest etc. Borrowing money, though, isn’t a problem, when this money makes a profit. In such case, this is a clever investment.
If you only save the money at the bank, you surely won’t become rich or financially independent. While the money is at the bank, it’s already been losing value. That’s why you have to add value to your money. Let’s take a look how …
We have twenty thousand euros at our disposal. An average consumer will spend the money on a car or luxury item. Presuppose that we’re a carpenter by profession. What would be the clever way of spending that money? We would invest the aforementioned money in a woodworking machine, which would create a competitive advantage for us over the other carpenters in the area. This way we would take the company onto a new level and increase demand. Our monthly income would be increased. This way, profit was made, which we conjured up or produced by ourselves. The increased profit could then be spent buying or leasing a car without worrying that our financial situation would suffer as a result of that. Some of the money should be reinvested back into the business for even more profit. Important: invest in the activity you know! Don’t invest a huge amount in buying shares if you have no experience in this field.
What about those who don’t have the seed money?
Start at the beginning. Look after your expenses. Buy what you need and not what society tells you to. Right after primary school (or sooner) a child can earn some money by mowing a neighbour’s lawn (parents, the sooner you teach your children to earn money, the better it’ll be for them). The same as the neighbour having his job and not having time to mow his lawn, the same is the child's job at that time to cut his grass. However, this doesn’t mean not ever doing anything without getting paid for it. Everything has to be kept in balance.
During school and student years we earn money and gain experience with part-time jobs. Maybe in a shop, bar or with cleaning work. It’s not important what we do; at this stage the most important thing is still to gain experience and knowledge. If we manage at this stage to already earn some money, then great.
At the beginning of our career path we’ll learn a great deal when interacting with people. In taking responsibility, listening and gathering experience, which will create a solid foundation. We have to learn as much as possible from every lesson and experience. All of that will benefit us later.
What about after our studies? If you’re employed, with a regular income but completely without money – then you’re definitely doing something wrong. Lower your standard and costs. On the other hand, increase your income. If you’re unemployed, start at the beginning. Don’t look for reasons in recession, lack of knowledge, age and such. Don’t wait for the money to fall from the sky. It won’t. You have to make it by yourself.
Did you know that in every recession a great deal of opportunities can be found, which can actually help you to become rich? Instead of convincing somebody of the unbearable situation for an hour, rather concentrate this hour on thinking and improving the situation. Start and spin the wheel!