It is no secret that money is more difficult to accumulate when you barely have any. Everyone has heard the proverb “it takes money to make money” at a certain point in their lives. Although there is some truth to that saying, large amounts of money can be achieved from scratch with effort and time.
Saving Before Impressing
Saving money is the foundation of accumulating wealth. Spending less money than you earn is the only logical path to riches. To some extent, spending is comparable to wasting. Anyone with unhealthy spending habits will need to make major changes to their mindset.
First and foremost, spending money to impress people is one of the biggest mistakes you could possibly make financially. Whether you refuse to drive an economic vehicle, choose brand clothing over regular and affordable clothing, or overspend in restaurants and clubs, you will have to make changes.
Sacrifices will have to be made if you are serious about accumulating large amounts of wealth. Giving up on your reputation of lavish spending will be the most effective and logical sacrifice that can be made. Choosing between impressing others and achieving sustainable financial success seems like a ridiculous dilemma, but many people are unable to make the correct decision.
Increase Your Revenue
The simplest way to accumulate more money is by increasing your cash flow. This can be done a few different ways. You could work more hours at your current job, get a raise at your current job, get a job on the side, or earn passive income from investments.
Working more hours at your current job would probably be the easiest choice (in terms of simplicity, not efforts). I do not recommend this option if you are not having fun at work and if you do not find your job fulfilling.
Getting a raise at your current job can be achieved by either getting a promotion, or becoming over qualified and over productive at what you currently do. You cannot expect to get a raise simply because you’re asking for one; your employer has to see value in your proposition.
Finding an additional job on the side can be a breath of fresh air. You can either start a side gig or simply apply for a part time job, but being your own boss can definitely help get you through the additional working hours.
You can earn passive income by investing money into stocks, mutual funds, trading, or revenue generating properties.
To see real results and to get the ball rolling, you will need to do a mix of everything that was recommended above; saving more money, and finding ways to increase your revenue.
Keep in mind that the more money you save, the more you can invest. The more money you earn, the more you can invest. The bigger your investment portfolio becomes, the more investment options you are offered, such as real estate. This is when the snowball effect takes place.
Capture More Soldiers And Grow Your Army
A metaphor that could motivate you to save and make more money is the soldier metaphor.
Imagine that every dollar you own is a soldier waiting to get on the battlefield to capture more soldiers that will, in return, join your army. Every soldier you successfully recruit is a soldier that will help you grow your army. The bigger your army gets, the easier finding new recruits becomes.
Imagine that every dollar you save is a soldier that you successfully protected from the enemy. You can even send battalions on different missions (which is the equivalent to investing your money).
Although it could seem childish, metaphors such as this one can be what you need to change the way you view your money and to start being more careful with it.
The next time you’re at the bar, I hope you think about all the loyal soldiers you sacrificed for a bit of fun.