Here's a financial lesson for the day. I am giving it to anyone who can understand the concept that money is an idea not a coin or bill.
These steps will help you succeed while starting with almost nothing. Take three ziploc bags any size. Lable and lay them out in this order.
Tithe - invest - savings
Put an amount any amount into the tithe bag. Put the same into the invest bag.
Only place an amount into the savings if you have leftover and if you will not deplete cash in hand.
Truthes to follow.
It's not what you save that is important its what you keep.
Because money is an idea you can proceed with the knowledge that the difference between an $80,000 dollar investment and an $800,000 is a 0 not $720,000. That is a freeing revelation.
Never say I can't afford this. Instead say - How can I afford this? This will let you see the possibilities where as the very word can't will stop the thought process in its tracks.
The key to financial success is explained so simply and accurately by Robert Kiyosaki author of Rich Dad Poor Dad and Cashflow Quadrant (get the books and read them). He explains the process that can be found in a simple game of Monopoly like this.
1 Green House
2 Green House
3 Green House
4 Green House
1 Big Red Hotel
Start small and trade up to bigger things.
And finally be the Bank not the Banker. No bank wants your savings. They don't make any real money on your savings. They actually mark you savings as a liability on thier financial report. They want you to borrow money. When you borrow for a house or a car they explain that it is an asset because you get tax credits. This is true but it is thier asset not yours. How often does your tax credit offset your interest? Never. It is a liability as long as it does not make you income. This is why I say be the Bank not the banker along with Robert Kiyosaki. The banker is just like you. He is doing his job oblivious to the fact that the asset due to tax credit is a lie. He more than likely believes its true. The bank takes risk (moderated risk) and gets paid to do it. You too should do this but that is another blog.
The ziploc system explanation.
Tithe ziploc - We must give. We can always make. Giving is always most important and it is my experience that it always returns 3 or more fold. Give!
Invest ziploc - This follows the rule that it isn't what you save its what you keep. If you have investments you have income. That is the reality. Most of the time your investment is making you money but even if not you can sell. Invest!
Savings - Saving money is a move to diversify. We often hear this term in the stock market to say that we have stock in multiple genre of stocks. I say that diversification should be across investment type rather that genre. Have some savings, real estate and stocks for example. This way if one fails you are ok. In the 30's the entire stock market crashed. Investment is more important than saving as you need your money working for you.
I hope this helps. We are in the greatest country in the world. There is no call for us not to be wealthy.
Wealthy people play the game to win and recognize that losing is part of winning. Non-Wealthy people play the game not to lose assuming that they can't win if they do.
