Most people in the world aspire to be rich, to be wealthy, to have loads of money. Some will make it, but most will not. Most of it comes down to their mindset, their methods, and the amount of action they take.
When it comes to wealth, there are two schools of thought on how to achieve it.
The first camp is simply the “saver’s” mentality. People with the saver’s mentality hinge their success on living below their means. Their prescription for wealth and riches is to cost cut everything to the bone and save as much as possible, not necessarily seeking the utmost utility of their money.
This is the classic The Millionaire Next Door type. Lifelong savers and minimal spenders. Many believe that adopting the saver’s mindset will set them up for a future of riches. However, there is a down side to all of this. Adopting the saver’s mindset will in fact work to obtain riches in the future, but it is FAR in the future.
If you work an average paying job and save XX% of your income, you are miles ahead of most of the world today. Most of the average people save little or nothing, spending all that they earn and then some. You may be able to save your way to riches in the end, but it will be most likely be in your final years when you are too old to enjoy it.
The other second camp is the “make more money” camp. This group focuses on raking in more and more cold hard cash. The bottom line is making as much money as possible throughout your days and having more to “live off of”.
There is a down side to this philosophy as well. Have you ever been in a position where you all of the sudden made more money? Have you ever quit a low paying job for a higher paying job and all of the sudden brought more money home? Of course, we all have. But what happened after you all of the sudden started bringing in more money?
You automatically started spending more money!
This is a simple phenomenon called lifestyle inflation. For every jump in income, there is a corresponding increase in spending. You think to yourself- “I work hard, I deserve it!” It starts innocently enough, but before you know it you’ve fallen into the pit of despair of weakness and luxury and find yourself staring down the barrel of the loaded gun called DEBT!
The house and cars are upgraded. Someone cuts the lawn and shovels the snow for us. We eat at fancier restaurants and do it more often. We take more expensive vacations and generally live a life of excess because “We can afford it now!”
So, if the answer isn’t saving your money, and it isn’t making more money, then what is the answer?
The “secret” to obtaining greater wealth is……. Both 1 AND 2….. combined!
To obtain wealth, obviously, you must have money. You must have a surplus of money. In order to have a surplus of money, you must have sufficient income and a low spending lifestyle. The extra money isn’t for spending on luxuries today. It is used to create wealth for tomorrow. Making more money in itself is not the prescription for greater wealth.
On the flip side, saving money in itself is not the answer either.
But by combining the two, it takes you down the road to financial freedom… FASTER!!
Saving your money is like flipping a two sided coin. You have obviously saved some cash that you otherwise would have spent, and as you get accustomed to spending less, you acclimate yourself to needing less in the future, even when money is not an issue. This increases your level of badassery to the max! DOUBLE WIN!
In a nutshell, seek to make the most income you possibly can. How do you do that? Firstly, if you have a job, do it to the best of your ability and always take on more responsibility. If you are in a job where you can negotiate your salary, raise the bar and bring it all to the table, then try to negotiate a salary increase or equity in the company.
If you have a low paying job, develop your skill set and start looking for a better paying job. There are numerous free resources that you can use to enhance your skills. Going to college isn’t the only way to educate yourself, trust me.
Secondly, find yourself a side hustle or a part time business and start making some side cash. Some may start a business or side hustle in a trade or a brick and mortar business, or for maximum impact, start an internet business. Then, once you start making some extra money, make sure you stash it in the right place.
But making more money,ultimately, is secondary to saving your money and finding the most utility in it, which we have talked about before. This practice of living like a Spartan makes you strong, and badass as hell!
Start saving your cash and looking for ways to invest in more cash, then work on creating more money from a side hustle to obtain greater wealth and get you on the fast track to freedom.
Rise up and stay strong!!