When there’s an entire section of people on Facebook and Instagram throwing around tons of useless advice regarding becoming a millionaire and how to make money quickly, it really gets difficult for one to decide what to believe and what not to.
Getting rich is not rocket science. Neither are you supposed to smuggle kidneys or start MLMs to get rich? Rather, it’s a compendium of simple but extremely useful skills that teaches how to make money quick.
- Investing- Investment lies at the genesis of one’s journey to making money fast and reinvestment success. Cryptocurrency, shares, bonds, hedge and mutual funds, insurance, simple fixed deposits, lending money. The list goes on, my friends. All you have to do is put your eggs in the correct basket(s).
Speaking of eggs, here’s the cardinal rule of investment — “Do not put all your eggs in one basket.”
There’s no getting rich without investing what you have. Period.
The reason investment and reinvestment are a catalyst in wealth growth is the Rate of return. Within the financial sector, multiple investment options offer different rates of return, mainly in the form of interest or dividends.
Here’s an example to put into perspective the effectiveness of wise investments-
Suppose you have $100. You divide it into 2 equal denominations of $50 each. You invest one half in Mutual Funds offering 10% p.a. ROI (which, by the way, is a very conservative figure). You invest the other half in your bank as Fixed Deposit which offers interest @ 6% annually. At the end of the investment period of a year, your Mutual Funds would’ve grown by 10%, i.e., by $5, and your FD by 6%, i.e., by $3. Within a year, your $100 turned into $108.
- Lifestyle- The rule of thumb that I personally stick to is this — “If you buy things that you do not need, you may soon have to sell things you need.”
You need to be well-aware of your present financial situation, and use that awareness to save money where you can.
Save up on electricity and phone bills. Tap into dormant past investments; repairs for the car? Time to claim vehicle insurance. Gotta run some health-checks? The health insurance will come in handy! See a sale signboard? Time to go seasonal shopping.
Empty your garage and store rooms and salvage whatever you cam for resale and reuse. Go to auctions and get stuff for heavenly cheap prices.
Always be on the lookout for money saving and making schemes and opportunities.
- Frugality- Frugality is an art which, when mastered, opens up unexpected opportunities for growth.
Cardinal Principle — “Do not spend what is left after spending, instead spend after you save/invest.”
Whenever you are about to make a purchase, ask yourself,”Will this item/purchase really make me happy?” If the answer is “No”, or not a clear “Yes”, do not make the purchase.
Most of the times people make Impulse purchases, or due to the Bandwagon Effect, which, by all means, is an unwise move.
- Savings- Savings are the result of frugality, and are to be channelised into the flow of money, i.e., invested. A mistake most households and individuals make is that they keep their savings locked in their vaults, hidden under their beds and camouflaged to be invisible to human sight.
Basically, they do not invest their savings. A sin of the highest order.
- Invest In Yourself- This is by far the most conventional method with the greatest returns. Human resource is any firm’s most valuable resource. And valuable resources come at a valuable price.
Skills sell expensive. A plumber in the U.S. makes more than a teacher (not to berate the profession of Teaching, for it is one of the only three noble professions). The reason behind that? The supply of teachers is high while the demand is relatively low, creating a supply surplus. The demand for plumbers is high, while the supply is relatively low, creating a demand surplus.
Once you’ve acquired the skill, it’s time to excel at it. Remember, the greater you are at something, the greater you’ll be paid, and the more you’ll be respected. There’s a reason the very name of John Wick sends shivers down the spine of men. Be the John Wick of your field.
Oh, and by the way, everything in Italics in the above write up are the principles of the Titan of Investing and thrifty lifestyle, Warren Buffett.
