“The most difficult thing is the decision to act, the rest is merely tenacity.” ~Amelia Earhart~
Amelia Earhart addresses one of the hardest parts about achieving financial freedom and building wealth—just getting started. After getting started, she suggests correctly, it’s merely a matter of sticking with a system and your financial or wealth building plan.
Ms. Earhart’s advice mirrors another adage about the importance of just getting started by China’s Lao Tzu, the father of Taoism: “The journey of a thousand miles begins with a single step.”
Saving money is important, whether you’re creating an emergency fund or working toward a long-term goal like a vacation or retirement. But there is a difference between saving money and building wealth.
If you establish an habit to save 10% to 20% of your income each year, the money will add up over time, and you will end up with savings that you can dip into when you need it. If you invest the money that you save, your money will start working for you and create more money through stock price appreciate, dividends and the power of compounding.
This is when and where you will begin to build substantial wealth.
How you think and feel about money plays a huge role in your decisions about money.
Your mindset is what makes money a positive experience or a negative one.
To learn more, register for my MindFrick e-Book 👉🏻 https://t.co/NM2Q5ZnGDE pic.twitter.com/HZ6T6ByMkM
— T. Harv Eker (@T_Harv_Eker) February 25, 2022
The purpose of earning (active and passive income) and saving money are to pay for your investments, which will build wealth and pay for your future. Investing involves buying assets, which are things that will likely go up in value. It’s important to “see every dollar as a “seed” that can be planted to earn a hundred more dollars, which can then be replanted to earn a thousand more dollars”, says T Harv Eker, author of The Millionaire Mind.
“Focus on all four of your net worth factors: increasing your income, increasing your savings, increasing your investment returns, and decreasing your cost of living by simplifying your lifestyle.”– T. Harv Eker
Focus on all four net worth factors:
The true measure of wealth is net worth, not working income.The four net worth factors, according to Eker, are:
- Income (working income and passive income)
- Savings
- Investments
- Simplification – decreasing your cost of living by simplifying your lifestyle (you consciously create a lifestyle in which you need less cash flow).
By tracking your worth, you are focusing on it, and because what you focus on expands, your net worth will expand. By the way, these laws go for every other part of your life: what you focus on expands and, like, what you measure, you manage.
The goal is to get educated. Learn about the world of investing. Become familiar with a variety of different investment asset classes and financial instruments, such as stocks, bonds, mutual funds, exchange traded funds (ETF), real estate, mortgages, stocks, and currency exchange. Then choose one primary asset class in which to become an expert. Begin investing in that asset and then diversify into other assets later.
It comes down to this: you must work hard, save, and invest your money so you can have options, live the lifestyle of your dreams and achieve financial freedom later in life.
References:
- https://www.creditonebank.com/articles/10-famous-quotes-about-finances-credit
- https://www.thebalance.com/how-do-i-begin-to-build-wealth-2386145
- https://www.edwardjones.com/us-en/market-news-insights/personal-finance/investing-strategies/investing-rules-road
- https://www.harveker.com/top-10-tips-for-wealth-success/
- https://www.wealthofhappiness.com/secrets-of-the-millionaire-mindset/
- https://www.sitrakaratsimba.com/secrets-of-the-millionaire-mind/