Money to invest? What money?

May 27, 2008 | By admin In How To Get RiCh |

If you’re going to have money working for you, the first thing to do is to get some money, right?

I know what you are probably thinking,

“Sure I understand that it takes money to make money, but I don’t have any money. I can’t pay my bills now. I want more money, but I can’t save any money on my present income. I’d like to use this method, but where will I get the money?”

Let’s talk about method #1 for getting some money to start your investments. Remember, you want money working for you so you don’t have to do all the work.

If you don’t want to use method #1, that’s okay. It’s only one of the methods that are available for your use. But you might want to give this method a try since the discipline it teaches is a discipline you’ll need to create permanent wealth. So here it is.

Method #1 :

Save a litle bit of money out of each paycheck.

That’s it? That’s one of the secret methods to becoming wealthy?

Yes. Pretty simple, isn’t it? Regular savings and compound interest mean financial wealth to those disciplined individuals who have patience.

But you can’t save any money out of your paycheck? Your bills are too high?

I bet anyone could save an extra $100 a month out of his paycheck and still pay his bills. How?

Just pretend that your boss gave you a $100 cut in pay. If you recieved a $100 cut in pay, would that be the end of world? Would you and your family starve? Would Western Civilization come to an end? I don’t think so. When things get a bit harder, we simply adjust. I bet some time in your life that you made an income that was at least $100 a month less than what you are making now. You were able to survive then, right?

So pretend you just got a $100 cut in pay. What would you do? Maybe you would:

      * Discontinue cable television
      * Eat out at restaurant less frequently
      * Stop buying new clothes every fashion season
      * Go to fewer movies
      * Carry your luch to work
      * Stop smoking or drinking designer beer
      * Make fewer long distance telephone calls
      * Have only one telephone line in you home instead of two
      * Spend your vacation at your in-laws house instead of that condo on the beach
      * Trade in your car for less expensive model

But you say: “Oh no, I could’t do any of these things!”

Then I would say that all of those things are more important to you than becoming wealthy. For instance, if you keep your cable television because you enjoy the extra channels, you might be saying to yourself, ” I want the pleasure of watching cable television channels more than I want to be wealthy.” If that’s what you want, that’s okay. Just realize that you are making the choice and this particular method may not work for you.

If you have a brand new car with a high car payment - well, you may realize that who you are does not depend on that model of your car.

A three year-old-car will get you to work just fine. If your friends think it’s neccessary to spend lots of money on a depreciating asset like a car, well, maybe they need to read this - if they ever intend to be wealthy.

What if you had to move to a smaller apartment to become wealthy? If you moved from an expensive three-bedroom waterfront apartment to a less plush two-bedroom apartment, you could literally save hundreds of dollars a month. Maybe you could save enough to qualify to purchase your first home.

But don’t cut your budget on the really important things in life.

Have some balance in your life. Don’t be like my friend, Tom, who said,

“I give my wife flowers every year for our anniversary. Maybe I should invest that $65 instead into my investment fund? That will certainly help it grow.”

Well, the investment fund will grow slightly faster, but Tom will only get half of the fund. That’s not smart thinking.

So who determines if I’ll be wealthy?

The choice to be wealthy is yours. It’s totally up to you if you want extra money every month that can go to work for you.

Wealthy individuals accumulated money and became wealthy by following one basic truth:

” Spend less than you earn - invest the difference.”

You can achieve this by using the first method we’ve discussed. By simply lowering your expenses, you’ll have extra money to invest every month.

If lowering your expenses is distasteful, how else can you arrange your finances so that you’ll spend less than you earn?

Easy, just try method #2 . .. up next

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