There's 3 working parts here for us to focus on.
Very few are good at all 3.
But if you want to seriously improve your financial future, you'll probably need to do some work in each area.
Let's take a look at each.
Area 1 - Earning money.
Pretty much everything you've been taught, is how to earn money. Trade your time for it. Study hard. Good grades. Get a good job. Work hard. Then save harder for a rainy day and so on.
Most people are ok here. They have some form of income from a job or a business. Wishing it was more, of course, but area 2 & 3 are more important!
Area 2 - Keeping it.
It's what you do with the pound that's key!
Here's where it all goes wrong. Everything from area 1, is gone before the end of the month. Even the tax man knows most are terrible here and take their cut before you get the chance to blow it all.
How much are you left with?
'Pay yourself first' is a phrase i heard years ago, and i never got it.
What d'ya mean pay myself first? It's all mine, isn't it?
The reality is, you pay everyone else first and yourself last, if there's any left!
Your wages, after the tax man has a bite, lands in your bank and within days, everyone else has a bite.
Rent/mortgage comes off.
Credit cards & loans.
Other finance repayments.
Then you look at the little bit left, and sigh. You can't even participate in area 3!
Area 3 - Growing it!
This is no doubt the hardest part.
Getting your money, to earn you more money!
Years ago, i heard a quote...
You're not making money, til you're making money while you sleep.
As we said in area 1, most of what your taught is skills to get you work. The better you are at that work, chances are the more money you will earn. And some work pays more.
A handful will even earn so much in area 1, they won't ever need to look at 2 & 3.
But a very small hand full!
Listen, were you ever taught about using the money you earn, to make more money?
No, i'm guessing the answer is to that!
Yea, sure, you know about it but you don't touch it because you don't know what you're doing.
Or you get a tip from your mate, chuck your savings at it, and it flops.
Area 3 is risky. The more risk you're willing to take, the higher the reward, usually.
What about buying property?
Most don't get enough from area 1 and are shite in area 2 to ever do anything of note in area 3.
So there's 2 things you'll need if you're to do a bit of damage here...
You have to be hungry.
You have to be disciplined.
If you've got that in you, your financial future could be exciting.
Don't leave it til it's too late!
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