HOW TO BE RICH!!!
By: Amera Marsangca
Everybody wants to be rich. I mean, who doesn’t? Here’s a beginner’s guide on how to start building wealth, which I’ve learned from Mr. Ernest Evangelista, an accomplished stockbroker.
To start let us first know what the word wealth means. It originated from the old English work “weal”, which means “well-being” or “welfare”. Many definitions have since been given to it. It has been defined as the accumulation of valuable things. It is also used to refer to the value of one’s total possessions and property rights.
So you see it’s not all about earning income but rather building it! How do we do it then? What follows are the steps in building one’s wealth:
1. SAVE – Did you know that 99.98% of those who became poor resulted from leading an extravagant life? Thus, it is important to save and to properly manage your income and expenses. Saving entails appropriating a portion of what you receive or earn before spending it. Use what remains to pay out your expenses and depts. Thus, before touching your allowance it would be best to make a budget. Don’t spend beyond your means and avoid incurring many debts, as they sooner would enslave you. So, if you’re planning on a date with someone special, stick to your budget! Don’t overdo it or else you might end up broke.
2. INVEST – It is not enough that you are receiving an income or allowance. Let it earn for you another income. Therefore, consider investing in real assets or those assets, which don’t depreciate but instead have the potential of increasing its monetary value in the long run. Ever considered investing in Mutual Fund Investment Company? Mutual Fund Investment Company allows you to earn more than the banks. You and your friends can pool up money to come up with an amount. Then, open an account in the said company. After finishing, you’d be surprised on how much your money has grown.
3. START EARLY – Why wait for tomorrow? Start now. In wealth building, it’s never too late and too early to start saving. Consider investing your money now in any of the investments mentioned in #2 and take advantage of the Principle of Compounding Interest. By its power, the money you saved will earn interest and the interest it earned will also earn interest. Also, recognize the fact that investments always involve risks and that the higher the risk, the higher the return.
4. UPGRADE YOUR ATTITUDE – Set your financial goals that which you want to achieve in four years time or even in thirty-five years time. Direct all your efforts toward the accomplishment of these objectives. This calls for rigid discipline on your part to constantly save and invest and avoid unnecessary spending.
5. BE A CONSCIOUS BUYER – Don’t impulse buy. Buy only what you really need. Avoid using credit cards except for emergency purposes only.
6. KEEP PAYING YOURSELF – After paying out your depts., reward yourself. You may join an enriching seminar on wealth building or buy your own book regarding such. Or better yet, treat yourself to a one-day indulgence in a spa.
What are you waiting for? Start saving bucks and build your wealth now.