To change your income you have to have the right philosophy. The philosophy of the poor Vs the philosophy of the rich.
First of all you have to have the right philosophy of life, of family relationships & of economics. If you develop the right philosophy, that's what helps you to set the sail, so that in six years it takes you to where you want to go. philosophy is ability to gather knowledge and sort through it and decide what's valuable
Now I'd like to give you a couple of philosophies to consider :
The philosophy of the Poor Vs The philosophy of the Rich.
Here's the philosophy of the poor : Poor people usually spend their money and invest what's left.
Here's the philosophy of the rich : Rich people usually invest their money & spend what's left
It really does not matter the amount of money you earn, what matters is the philosophy. I'll advise you adopt this philosophy of spending after you have invested.
Now what should you do with a $Dollar?
A person's economic future starts with a child with a dollar. Some will say ' oh, it's just a dollar, let me spend it ' but hey! when do you hope that will stop?
Don't spend the whole dollar! Well, I know it's your dollar, you earned it, but don't spend it all!
If you're young, say age 15, you still have 20 years to practice what I'm about to share.
Rule no 1. Never spend more than 70% of your income.
Well, okay, you may ask what do you do with the other 30%.
Here's the bit of advice :
10% FOR CHARITY : Charity or church or for helping people who can't help themselves. It's called being generous. The best time to start is when the amount is small. Because when the amount gets larger it's a little bit difficult. I hear some people say ' I'd give a hundred thousand out of a million ' I'm sure about that, that's a large amount of money!! So the best time to start is when the amount is small. 10% of a dollar!
10% for ACTIVE CAPITAL : Active capital means doing something to make a profit. Wages are okay, but I'm telling you that wages will make you a living but profit will make you a fortune. You can't start earning wages until you're about 16 or 17years. But you can start earning profits long before then. There's no limit to profits. Profits can double & triple & quadruple. Profits are better than wages.
10% FOR PASSIVE CAPITAL : This is a capital you let someone else use and they pay you for the use of it, it could be a financial institution, stocks & bonds, rental properties etc. Compound interest could make you financially independent so quickly, and that's how you get it : letting someone use some part of your money & they pay you for the use of it. If you can adopt this formula of 10% 10% 10% and 70% ,I'm telling you if you start at age 15, at age 35 you will become financially independent.
One more key on financial independence, that is - ATTITUDE.
You need to learn to reduce your liabilities and increase your assets. You have to have that kind of attitude.
at December 20, 2017
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