Actually, there is not that much of a secret, but all advertising we are surrounded by daily works to break down the barriers to your wealth and fortune, and encourage us to spend it, rather than save it.
This is what actually keeps a majority of people from getting rich. Instant gratification. Buy now, pay later. All of the eighties, and nineties was all about buy now, pay later.
Our neighbour changes their car for a new one, and all of a sudden we feel inferious and want a new car yourself. If only we had the patience to wait until our passive income could grant us all that, without putting us further into dept.
Of cause I would want that new car as well, but I have realised that I will have to wait on some of those dreams, until I can affoard to fulfill them.
What am I doing then?
- Cutting my spending. Trying to spend less on things I don’t need, and keep putting money into savings (how I save, and invest is something I will come to later).
- Increasing my income. In my case it is not through work, but through the work I am doing for myself when not at the office. Actually this blog is part of that, eventhough it might not bring me a fortune anytime soon, and right now only costs me money.
- Investing wisely. That means that I don’t keep my money in my savings account, but I try to find other ways that can make my money grow faster. Right now my investments include Wine, Stocks & Shares, and Fixed Income Instruments. I plan on moving on to Property at a later stage, but for now I am happy with what I am currently doing.
Next post will be related to earnings and spending, and how to make your income stretch longer.