By Joey Ortiz
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I’m going to start this article by asking several questions.
1. Do you think that, earning more money will solve your money problems?
2. Do you think higher education will solve your money problems?
3. Do high paying jobs solve money problems?
But the real question is, What does solve money problems?
Making more money does not solve your money problems. This is due to individuals tend to find new things to buy with the new money they just received. Many times, this is bought on credit which adds monthly payments to your debts.
Higher education does not solve your money problems either. We have a lot of bright individuals with Masters and Ph.D.’s that earn a lot of money but are deeply in debt.
A higher paying job does not solve your money problems. I see it all the time.
Tell me, how many pay increases have you received in your working life? How many bonuses have you received?
Are you out of bad debt yet? Ask yourself, why?
Truth is, we already know where or on what we want to spend that money before we even receive it. The reason why too many individuals cannot get ahead of the game is that they lack the real answer to the big question, Financial Education / Financial IQ.
One thing is having higher education, high paying jobs or making a lot of money; and a whole different thing to know what to do with that money to become financially free.
In order to increase your Financial IQ, Robert T. Kiyosaki wrote a book to help us all. The book “Increase your Financial IQ – Get smarter with your money” goes in-depth to explain what real Financial education is and how you can use it to get ahead of the game.
Don’t buy luxuries until you’ve built the assets to afford them. He doesn’t agree with the mentality of living below your means. He prefers to build and acquire assets that pay for the lifestyle you want. Don’t pay for luxuries out of pocket. Pay for assets out of pocket and they will buy the luxuries that you want.
Assets come in many forms. They are things that will bring money into your pockets, whether you were working for it or not.
The most common assets are paper assets. Those come in the form of investing in stocks in the stock market. Mutual funds and bonds are also in this category.
Another type of asset is Real Estate. Whether you are flipping houses or owning rental properties (house for rent or apartment for rent).
Owning your own business. Or learning how to make money online by setting up a website, blog, etc.
And finally, the less common known assets of commodities. Include owning oil, gold, silver.
What do you do?
If you want to learn how to make money, I highly encourage you to decide which one of the previous types of assets you are more interested in. Buy a few books on the topic or take some classes. Learn the inside and out of how they work. Set yourself for success.
Instead of watching TV, learn new skills and begin managing your finances.
Useful new skills for this century are podcasting, affiliate marketing, app development, furniture making, graphic design, just to name a few.
Manage your finances by learning about taxes (“Tax-Free Wealth“) or be willing to pay up for a very well educated accountant.
Start your own business. It could be inside a building or an online business. You want a proven system, then check out Timothy Ferriss’s book (“The 4-hour workweek“). A great example of his business with tips and tricks for getting what you need for less.
Learn to invest (“The Intelligent Investor“) or know that you will be paying fees and expenses to people that are as intelligent as you or not even as much.
Review and organize your finances using money calculators, build your own or be willing to pay someone to build one for you. By the way, that someone will be me in the near future. Don’t worry, it won’t be expensive.
Don’t be afraid of using coupons to buy items at lower prices. It is a great way to save money that you can put to better use by investing it and growing your account.
Don’t throw your hard-earned money in the grave or online banking. What I mean by that is, don’t leave your money in a savings account or online bank account that pays anywhere from 0.5%-2.50%. Remember that inflation increases on average 3.5% per year. You need to make investments that pay at least 3.5% just to keep up with inflation and not lose your buying power.
There are plenty of assets that can pay you 3.5% and more. Investing is not risky. Risky is depending on one source of income (aka your job), and losing it (getting fired) and no second or third sources of income to help you mitigate the hit. Now, THAT! is risky.
Begin your Road to Wealth!
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