- A person asked: “Money, Money, where are you honey; I want to retire with your fire”.
- Money Smiles, “Catch me, if you can” Gold spreads everywhere, I am there; I am here”.
So, you want to retire at 50? Let us calculate it between 45 and 50 somewhere, so you will get five more extra years to enjoy. But just remember, retirement does not mean, no work, It means enough combination of active and passive income in your kitty to relax and easily covering emergency and all types of unseen unavoidable circumstances while you are enjoying your luxury life.
Some days ago, I met with a middle-aged couple, who could not gather enough money in their whole career life to be able to purchase their own residence. They both lived a well-maintained luxuries life, with a high profile job. They visited so many places in the world, but never think of to purchase their own home. They thought, they would be earned enough money at the time of retirement, so they can purchase their own home, wherever and whatever they want.
Now, what actually happened:
- The real estate price continues up. So whenever they want to purchase, start to bargain and every time they felt that property is a little bit costly.
- The inflation rate went up every year
- Their savings were not enough to beat the pace of inflation.
- They want residence matching with their lifestyle, which seems not possible now
- Financial institutions denied a home loan to them because of their overaged factor.
- Their children were well settled and they prefer a nuclear family, so they left both of them.
There was an incident that happened personally with me when I need money in an emergency. I sold all of my Shares, stocks at half of the price from the price I have purchased 10 years back. I thought I mistook myself as a great financial managed person. For the last 10 years, I was thinking that I was managing money, but actually money was managing me. It was an eye-opener for me. I am failed to manage it, but I learned a great lesson and that was priceless.
So here we will discuss only two points “How to make money” and then “How to manage money”?
Let us start:
What are Your Only Options?
After completion of our schooling, we have three options for earnings:
- Become an Employee
- Become a skilled Professional
- Become a businessman, an employer and provide jobs to others
But what actually we are missing in your school days, we will discuss further in the same blog.
Our Normal Reactions to Purchase
Let us analyze a situation:
I am offering you to buy something very costly. You have below options to give answers.
- I can’t afford it, I can’t buy it, I am not so rich, I can’t think even dream of it. (Helpless)
- How I can afford it? (Denial mode with a little surprise)
- How can I afford it? (Thoughtful process to find the way, to get it, to own it)
In the first two statements, you blocked your road of growth. The only third one is practical because it forces you to think over it, to find ways to fulfill your dreams.
Common Attitude about Money
You can find a lot of persons saying, “What is in the money”, “Money is not everything”, “GOD gave us a lot of wealth, so why to worry for the money?” Another one, “I literally not interested in money”. “Money is secondary in my life”. “Money does not matter for me”.
One more example, “Job! I have enough parental money, I am doing the job just to spend my time”. A very enthusiastic person is stating, “I am working, because I love my job.”
This is the fact of the life that “You can not avoid money”, but similar you should not be attached to money as a real thing. Money is power, if it is in the wrong hand, it could be enough to mess-up. But if it is in the royal hands, every single buck will become gold.
These all rubbish statements. Without money, no one can survive. Only blessings from elders and from GOD cannot fulfill your appetites. Just remember Money is a Power and you have to work hard to earn it. Here we will talk about Work Smart instead of Work Hard.
Every person has a weak and needy part of the soul and that can be bought, and every individual also had a part of his soul, which is strong enough that it could never be bought. It is the only question of which one is stronger?
Are you writing your own Fate or depends on your Karmic Fate?
Do one exercise with me. From today onwards ask yourself one question daily, “Where is this daily activity taking me”? “Am I doing all the right things in my life, and if yes, then the million-dollar question, “Why all odd happened to me only”.
Analyze today. “If life is pushing you or you are pushing life”. Generally, life does not tell you anything it always pushes you, throw you, and break you, just to stand up.
If you think your senior, your superior, your boss is a problem, then try to show them your best part of working, and even if there is a problem, then you don’t have an option, just to change them.
Else, if they are right and your problem is only yours, then you are in a problem. You have to change yourself. Then you need to understand the problem is within you, and the solution is also within you.
Change is Inevitable: Either for you or for Situation
This is a universal truth that it is not easy to change others, but this is also true that to change yourself is also not an easy task as we think of.
You cannot teach a new trick to the old dog unless he wants to learn. But this is not for others, just apply this idiom up to yourself. It is not easy to change habits either if it is laziness, or indiscipline or the love to get a salary check at the end of the month after doing minimum work.
This is also a bitter truth that most people become the slave for money and then curse their superiors or bosses always. You need to realize this truth now or never.
The world is filled with talented people, but why they are poor because they don’t want to use their talent or maybe this is also true that they don’t know they have talent.
If really you want to learn a lot in a single life, within a single organization then move yourself department to department to learn more new things, not only for the job or to get a hike, but to be self-sufficient one day.
Because a job cannot be a long term solution for all of your needs, it is only a short term solution for time being.
When you are short of money, you always started thinking and talking about money while eating, wandering, sleeping, playing, etc. Many are working just to get over the fear that if they will not work, they will lose the salary or wages, then what about expenses, who will pay for them?
What is Money?
The money is not real, the more you think real, you will work harder for it. Don’t work for money, let money work for you. Some people work for money but for some people, money works for them.
Run for money is nothing but fear pushes you out of the door and desire calls to you to come in the door.
Our Mind is a powerful asset, and this is real money for us. We need to train it, so it can earn for generations. If you have a problem with money, and you are running behind money to collect more, than, more money will not solve your problem.
The more you will get money, the more you will find yourself in debt. Sometimes money can solve some problems for the time being, but intelligence solves all types of problems at the root level.
Emotions for Money:
Use your mind and emotions in your favor, not against you.
Most people have a price just because of emotion. And emotion is nothing but fear & hunger. Fear of insecurity of money. It could be a loss of a job or no money at the end of the month to pay bills. So just to overcome this fear, they work hard. And then hunger to get all things, bring pleasures in life. Well, hunger can be changed with another noun i.e. desire. People do more work to full fill their desires. Isn’t it?
To spend your life living in fear and never exploring the dream is like punishing yourself. On another side to working hard for money and thinking that it will buy all the things, which will make you happy, is also punishing yourself for nothing.
Learn to use your emotions to think, not think with your emotions.
The best example of fear and hunger is the Stock Market. If you are trading in share market and putting your hard-earned money in different deals and started praying then you are making fool to yourself. It is not business, it is a gambling.
Buying stocks with a long term vision with financial literacy is good, but when you sell it out just for a fear of market declining, it will not work. And if you are in profit and you are looking for more and more, that is greed. And both are harmful.
The difference between Informed and Uninformed
Investing is not buying, it is more knowing, what to buy, when to buy and how to buy. People think we will earn money while we will sell, but actually investing is to know, you should be in profit, before investing in it. So in a layman language cut your cost before you buy.
Human life is a struggle between ignorance and illumination.
Who are your public relations officer? You yourself. You should search for Information & earn self-knowledge, only then you can understand what you do not know and what you know.
Workers work hard so they do not get fired from the job, and employers pay just enough so a worker does no quit. Ask any colleague “I am going to quit”, do you want to come with me”. Only the honest person will speak out, “yes I want to but what about my job, who pays my salary, next month my promotion is due. So I want to, but I am not”.
How to Manage your Money
Learn to Manage Yourself:
Need to learn 3 Management aspects to win yourself:
- Management of Cash Flow
- Management of System
- Management of People
When I was in the job, I faced the same issue. As soon as the month completed, salary credited to my bank account, the first day of the new month, all money shows outflow. I can see only all debits in my bank account? Where had the money gone? Finish. Cash In-and a Cash-Out took only 24 hours. So money was with me only for 24 hours. I never understand the point number two. What is the system? Actually, it is nothing but to understand the logic of demand and supply, not for any specific thing or item, for all types of things in the world, even this is applied to humans also. The third point is interesting that who is people to be managed? None, but you, yourself. Learn to sell yourself, learn to market yourself. You as your skills are actually salable commodities.
If you think you are lacking some specific skills, just learn to work with a person more than knowledgeable than you. It is called the synergy of a professional specialist. If you will learn nothing, do not worry, you will have a bright skill to learn indirectly and that is, your communication skills will improve, and you will become a Subject Matter Expert. Doesn’t it priceless?
You could be a good learner only if you could become a good seller, you could become a good marketer, and after all, if you could become a good teacher.
Be Honest Today & Ask Yourself:
- If you have purchased your house, or planning to purchase your house. What do you think about it? Will your house is a liability to you or it would be a good investment for you.
- At what date you are paying you monthly expense bills? Is it the first day of the month or the last day of the due date?
Don’t Chase Money, Let Money chase you
In the previous section, you answer for point number 1 is, “An Investment”, then you are pretty good, but if the answer is “Liability”, you have already missed an opportunity to become rich.
In the previous section your answer for point number 2 is, the first day of the month, it means as soon as your salary credited, you start paying you expenses, and won’t allow your money to grow. If you are paying it before one day of the due date, you could have at least earned bank interest for some days. If you are a businessman, do not pay your taxes first, pay your taxes before the last day.
Don’t become what school making you, try to be what you want to be, what you should be.
Intelligence solves the problem and produces money. To understand this let us dig a little bit more about active and passive income.
Active income is nothing, but income coming from your day to day work, it could be salary, commission, business income, etc., which needs your presence.
But passive income is income generated by you, and it does not require your presence, for example, bank interest, etc.
What are the business categories where you can earn passive income?
- Rental Income
- Income from Fixed Deposits, Bonds, Promissory Notes
- Income from Royalties like music, book writings, bloggers income, story writing, scriptwriting, etc.
- Income from Stocks
- Income from investments to a small business as a partnership or equity sharing etc…etc…etc.
Recognize Your Powers:
Every person should learn and understand three powers:
- How to save yourself in all type of emergencies
- How to earn money when you don’t have any support from others
- To learn Who I am, what you know, what you don’t
No doubt, you are a born Intelligent person, but it is possible that other side of this world, somewhere one more person already born, is more intelligent than you. Find him and give him employment and learn from him.
Join schools not to design yourself as a good employee, let school proud of you by producing an employer, who can give the job to many employees.
No one is stopping you from making money, but this is always an emotional decision. Don’t trap yourself in it. You should not work for money, let money should work for you.
Losses come in life to give you a learning experience:
Do not count your losses with a single word. For example: When you buy a house and it becomes your liability then it means: It is Loss of time, Loss of additional capital, Loss of Knowledge, Loss of Information, Loss of opportunity cost.
The first house should come up with a planned way so it can become your asset and it generates income. This house will bring the second house as your residential house.
Networking is for Giving not to take:
From my parents, I always learn one thing, “You should part a little percentage of profit for charity” So earn then you give. But life shows me help those who cannot help you in return, this ends up your expectations and only then it counts in Charity, else this is a business. So it is reverse now, “Give without any expectation and then you will earn.”, and this is not only for money, that is true in all sense of worldly affairs. Try it from today.
Pick up BAD HABITS within you and KILL them forever
- Fear: Losing money is a phobia. Learn to cross the line. Don’t bury your failures. Convert disaster into an opportunity.
- Cynicism: Uncheck Doubts and fear creates Cynic. Cynic person criticizes and winner analysis. Find a good superior Boss/Manager/Professional/Agent etc. Who are masters in his skill? Learn how to stop and then when to stop, your fear will remove. Don’t focus on I do not want, instead focus on what you want
- Laziness: Become greedy, you will never feel laziness. Ask yourself “what is in it for me?” and then your mind starts to exercise to find something. Be hungry, your mind is enough smart to get you in.
- Educate yourself: Do not use your arrogance to hide your ignorance that you are not educated enough to understand financial jargon. Start educating yourself today.
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