If you learned about money from those who were not rich themselves when you are growing up, what you have learned might be wrong. Many athletes making tens of millions a year can go bankrupt while a driver can retire multi-millionaire. After reading this article you will understand what’s true and what’s wrong about money and how to create a wealth that belongs to you. Here are the things you need to know.
Income does not mean wealth
Yes, high paying job can make you wealthier, however that’s not enough if you want wealth. No matter how much you make, you need to spend less than you make in order to save. Wealth is how much you earn divided by how much hours you put on your labor. You may be earning so much, however if it takes long hours everyday, that does not mean wealth. On the other hand a person who created a portfolio with many of passive income sources, making a lot of money when sitting by the pool, that’s wealth.
Create money to invest
We all say investing is very important and crucial to build wealth. However first, you need to create the money you are going to invest. So if you want to invest, you must have surplus funds. Building a wealth and becoming financially independent is a slow process. Your everyday efforts to cut your expenses and put your money into savings will be playing the biggest role in this game.
Grades are not equal to financial independence
More than 90 percent of American millionaires graduate with an undergraduate degree. That means your grades have no correlation with your financial situation. Yes, leaving a successful educational life may mean higher salary. However if you want to create your financial independence, you need to be financially successful instead of being educationally successful. Understanding the mindset behind controlling your money and with right investments there is no successful degrees needed.
You have to find a spouse who has equal mindset
We tend to get affected from those next to us. Even your friends might affect negatively you with their spending habits. You hang out with them together, do activities and spend same. So imagine how much your spouse can affect you with his/her spending habits. If your spouse is equally disciplined, investment oriented and frugal, your efforts will give so much better results. Because you will be spending your life with her/him. So you need to be supported all the time