How to Save and Invest Money Wisely. Money is always the hot topic and the trending issue in everyone’s life on almost daily routine. Accept it or not we are all being crybabies when it comes to money: either we are broke or we need to find a way to make more of it. Khalid Hossani wrote in one of his books that if you let two Afghanis sit in a room they would ultimately track down their linages. Applying the same theory, if you let two people just have enough time to sit and talk with each other at some point they will discuss ideas on how to make income and keep it flowing. In his book Rich Dad Poor Dad, Robert T. Kiyosaki opens up and explains that generating and handling finances is not based on tricks or some short way out but is basically the mindset that differentiates between how the rich and the poor reach out for money. He builds the narrative of his book based on his biological father (poor father) who was well educated (earned a PhD) and working for one of the best educational systems in Hawaii died with debt on him.
Tips to Save and Invest Money Wisely in Life
Whereas the rich father (the author’s best friend’s dad) who hadn’t even completed his eighth grade was one of the richest person in state. And from these two dads, Kiyosaki expands on the mindsets these two categories have. Here are some ideas from his books that sound practical and reasonable for monetary talks and let us help to Invest Money Wisely in life.
“Often in the real world, it’s not the smart who get ahead, but the bold”
This seems to be a very important idea for success. And if you are succeeding you might as well be making big bucks out of it too. Innovation requires that we become bold in our creativity and expand our horizon and ability.
Kiyosaki sees one thing in common for all of us, himself included, is that we all have tremendous potential, and we all are blessed with gifts. Yet the one thing that holds all of us back is some degree of self-doubt. If every other café was going to have the same theme and menu what is the point in investing money in something that already exists. In order to catch the fish you have got to play bold with your bait to attract people who would become interested in what you have got to say or present to the world. Newness or being bold is the key to finding what might tick.
How to Save and Invest Money Wisely
“Rich dad believed that the words ‘I can’t afford it’ shut down your brain. ‘How can I afford it?’ opens up possibilities, excitement, and dreams”
Too often we are dying to buy something but the price tag just puts us off. But here is the thing: some of us will keep gazing at it wishing we could afford it somehow while there are others who would check the price tag and tell themselves “You are next on my shopping list!” The idea of wanting to attain something or possessing something that could be as simple as a ring to as huge as a mansion or a retailing store is in the difference of how we view money. In Secrets of the Millionaire Mind, T. Harv Eker writes “each thought you have will either be an investment or a cost. It will either move you toward happiness and success or away from it. It will either empower you or disempower you. That’s why it is imperative you choose your thoughts and beliefs wisely.”
“It is not gambling if you know what you’re doing. It is gambling if you’re just throwing money into a deal and praying”
This is the difference between investing and gambling; while investing you understand all dynamics of not only the money you are putting into something but what you are putting into, the time it would take before its becomes profitable and if even is worth the investment. While gambling is just pure luck and money throwing. You hope you will end up with more money than you used. Kiyosaki explains that “most people don’t understand why they struggle financially because they don’t understand cash flow”. It is very important to understand how cash works in a market and grasping these details will help us get better equipped for our investments. So before you bet your money in some asset it is best to do get yourself covered and prepare your homework. Now an asset for Kiyosaki is what “puts money in your pocket. A liability” on the other hand “takes money out of your pocket”.
The difference in the mindsets of the middle class and rich lies in what we terms as assets for the author. He further explains this mindset and says “the rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets.”
“The world is always handing you opportunities of a lifetime, every day of your life, but all too often we fail to see them”
Most of us would love to discuss ideas on how to generate or invest money in something. We would come with examples of how someone we know or have seen work their way up to reach the position they are in but this is also true that most of us also brush the same possibility for ourselves because we have too many reasons to not opt for the similar route.
Kiyosaki lists five reasons why financially literate people may still not develop abundant asset columns that could produce a large cash flow as following:
- Bad habits
Amongst the five reasons, Kiosaki feels that “the most common form of laziness is staying busy”. There is one form of laziness where you just won’t work because, well you don’t feel like working. But this form of laziness where we seem “busy” is what stops us from venturing out in new directions. And this is the most common form of laziness that is found in most of the younger generation including me. Because we are occupied with something already we look for excuses when another opportunity comes along. Many factors have a role in our playing safe and sticking to what we are already doing, but in order to expand on monetary level we also need to expand our ability to avail opportunities that would play well in how we want to see ourselves financially in the future.
For Better and Secure Future it is always Good to Invest Money Wisely
Everyone has a different way of dealing with their finances because everyone comes with a different experience. But these were some dimensions that do broaden one’s perspective and understanding on invest money wisely. Great day to you all.