Yesterday, I recommended the cures for the lean purse by earning an income and then paying yourself first one tenth of your total income and thereby paying others the nine-tenths while budgeting your money for necessary expenses and desires. You have learned now how to pay yourself first and how to use other nine-tenths. Paying yourself first is a beautiful discipline that you can cultivate and over the period enough wealth will be accumulated. What to do with that accumulated money? That is the next cure for lean purse.
6. Make your money work and multiply for you.
Just like you seek jobs or trades for yourself in order to earn some money, you have to find some employment for your one tenth of accumulated money to labour for you. You have to find some profitable investments but be warned of the possibility of loss. Do your own study, research and calculation and don't ever blindly handover your precious capital to the mutual fund companies or stock traders when you don't have a direct control over your investments.
You must look for some good investment vehicles, which suit your level of skills, knowledge and interest. Some people invest the capital in their own businesses that they start and multiply the seed money through profits and returns. Some invest only in assets that put money in their pockets every day or every month constantly. Make sure to multiply your capital by investing in assets from your perspective and not from the bankers point of view. What is an asset for one can be a liability for the other.
Your real wealth will be not the money in the bank balance but it is the income system that you build and flows to you continually as golden stream is your real wealth. When there is a constant money flow in than money flow out, there happens a miracle of multiplication of wealth. As you grow in experiences and your wealth multiplies, you can invest in multiple streams of income to attract the constant cash flow.
7. Protect your money and treasures from loss.
From the experiences of others and yours, you can easily make a strategic plans to protect your wealth because they are the fruits of your own labour and skills. It is your duty to protect it from loss of any kind. Before you loan your money to somebody, check their ability to repay you. Or before entrusting your money in any field of investments acquaint yourself with the dangers involved. Calculate the ratio of risks and rewards.
The new super markets in the city, the casinos, the large malls, the movie theatres, the hospitals, the education institutes, the governmental taxes, the fast food restaurants and food chains, the airlines, the cars, buses and tourism industries and many more industries are there to grab a share of your earnings and at times it can be tempting to given in and lose all your money. Because when your desires will overpower you, you can't do much other than swiping your credit cards randomly.
Don't be over confident of your own wisdom and experiences in entrusting your money to others. At the same time don't just consult anybody in the market place what do they think about the investment opportunities because advice is cheap and available everywhere. Consult the right people who are engaged in such trades themselves.
It is important to prevent your purse from being emptied once it has become full. Invest in places where you can get back your capital. Consult with wise men. People will flock to you with their investment vehicles but don't get lured because many people are working hard to earn their fat commission from your investments.
Alwed Ekka
Guide Coach Mentor
