10/08/2019
THE ART OF BEING FINANCIALLY STABLE.
“Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.” – Dave Ramsey (American financial writer, radio and television host)
Ask most people the first thing that comes to their mind when the word “money” gets spoken and you’ll get a bunch of different answers.
To some it’s a means a better house, financially stable future, and college education. To another person, it may bring up images of success, travel, and freedom.
Others may simply define it as being debt-free.
No matter what your view on money is, we all have our own personal definition of it based on our experiences, upbringing, and influences.
USE MONEY AS A MEANS, NOT A GOAL
The Richest Man in Babylon was a book by George S. Clason that described money as a tool for producing even more money. In the book, the main protagonist quoted, “Every gold piece you save is a slave to work for you. Every copper it earns is its child that can also earn for you.”
What does this mean?
If you think about it, George Clason was explaining the core concept of Investing.
He wanted us to see money not as a by-product of our labor, but as an “employee” that works for us and makes us money.
Some people call it Passive Income, while some might say it’s Compound Interest. Both are correct as they incorporate the use of capital money to earn more money.
Why are we not utilizing this great “tool”?
Even the great scientist Albert Einstein once said that Compound Interest is one of the greatest invention in human history.
While technically a man of science, he acknowledges this financial concept to be a powerful formula that every man should be made aware of.
1. Open a high-yield savings account
A typical savings account offers an interest rate around 0.01%, and a typical checking account is the digital equivalent of putting your money under the mattress.
However, high-yield checking and saving offer interest rates that exceed 1% — 100 times what you’d get otherwise.
This report from CNBC reveals how much a high-yield savings account performs compared to traditional checking account.
2. Develop streams of passive income
Creating any streams of passive income requires an investment upfront, whether of your time or money, but can lead to huge payoffs later.
3. Store it in retirement accounts
Save as much as possible to have your money work for you tax-efficiently and to get money in the markets.
4. Rent out your stuff
Get creative here. If you have some space or equipment that others don’t have, they might be willing to pay for it and rent it out.
Keep posted for more stuff on how to make money work for you. Backwithabang!
