Hi! there have a blessed day to you my friend, today another great article from Bo. Sanchez that I have read I want to share with you. Building wealth does not require to have a big income or salary to achieve it. It requires patience, hard work, right attitude, determination and learning about how to grow your income. Here are the three things that Bo. Sanchez explains on How to Build Your Wealth Over Time;
1. Receive (Regular Income)
2. Retain (Simple Lifestyle)
3. Reproduce (Financial Literacy)
1. Receive (Regular Income)
If you want to become rich in your old age, the first requirement is to receive a regular income today.
Here’s the shocker: To build wealth in your old age, you don’t need super income, you just need steady income.
A lot of people think that income and wealth are the same. They’re not. A big income doesn’t equal big wealth.
Let me tell you about Jack (not his real name). When I met him, he was President of a huge company and earning much more than P500,000 a month.
His income was big. But so was his lifestyle. Jack drove luxury cars and travelled around the world. Always first-class. He had a mansion in a plush subdivision. Everyone around him knew he was wealthy. But they were wrong.
Because throughout his working life, the most he saved was one million pesos. (That may be big for you and me, but to him, one million will last two months.) Why didn’t he save? Because he was banking on his fat retirement pay. Reason: He worked in that company for 20 years.
True enough, when he retired, Jack received P10 Million.
But he never changed his lifestyle. After only 2 to 3 years, he woke up one day with all his money gone. Soon, he sold his cars. Soon, he was asking money from his children.
What happened?
He did Step 1. He received an income.
But he never did Step 2 or 3.
2. Retain (Simple Lifestyle)
People say money can’t buy you happiness. I agree.
But face it, happiness requires a minimum level of money. I don’t live in Lala-land. We’re human beings with physical bodies that need stuff to survive and be happy.
But the other side of the coin must be pointed out as well. After we reach our “Happiness Point”, more stuff won’t make us happier.
When it comes to possessions, I’ve reached my “happiness point” a long time ago. Any more possessions won’t make me happier. In fact, I believe the opposite happens: After reaching my happiness point, more possessions will lessen my happiness. (See graph below.)
Where Is Your Happiness Point?
Why does this happen? Because more possessions will mean more clutter, more stress, more worry, more envy, more costs, more taxes, more insurance…
Jack, the former company President, spent all his income. Like many people, he was enslaved by the hypnosis of materialism.
To avoid the hypnosis of materialism, don’t swallow the world’s definition of “Rich.” You need to define what it means to live a “Rich” life.
Let me give you an example…
Does Your Pail Have A Hole?
Building wealth is like collecting water in a pail.
If there’s a hole in the pail, the water will just drip out—and you won’t be able to collect any water.
That hole represents materialism.
What do you need to do? Plug the hole. And the only plug that can cover that hole is simplicity. If you don’t live simply, money will keep going out of the hole.
But alas, even simplicity isn’t enough. Plugging the hole in your pail isn’t enough. You need to constantly put new water into your pail…
For that, you need the third element…
3. Reproduce (Financial Literacy)
Retaining your money isn’t enough.
Why was Abraham wealthy? He didn’t only retain, he reproduced. The Bible says,Abram had become very wealthy in livestock and in silver and gold. (Genesis 13:2) At his time, wealth was measured by the heads of cattle, sheep, and goats that you had.
Here was their rule to wealth: If you wanted to become rich, don’t eat or sell all your animals. You have to keep some of them to reproduce after it’s own kind. The more animals you reproduce, the richer you become.
One sheep can give birth to one to three lambs every year. That’s a growth rate of 100% to 300% a year.
The secret of wealth is to keep your wealth reproducing after its own kind.
Where Do You Invest Your Money?
I’m not asking you to buy cattle, sheep, and goats. Times are different today. There are only three places to invest your money: Paper Assets, Business, and Real Estate. (Note: Paper Assets mean the Stock Market and Bonds.)
Not everyone can start a business or buy an income-generating property now. (In time, yes, through financial education.) But I believe you can invest in Paper Assets now. Out of the three kinds of investments, it’s the easiest investment to make in your life.
Specifically, if it’s a long-term investment, I encourage you to invest in the Stock Market. I don’t believe that you should trade. That’s dangerous. I’m talking about putting 20% of your salary each month in giant companies for years—disregarding the ups and downs of the market. If you follow this simple system, the Stock Market is the best, safest, and most effective way to build your wealth in your old age. (I teach this powerful system of investing. To watch me talk about it, click here.)
I know that’s a controversial statement, but suspend your doubts and hear me out first.
May your dreams come true,
Bo Sanchez
So that's it, in summary building wealth does not require big income instead a regular income, then live in a simple life and last learn how to invest to grow your income.
I Hope you are inspired & motivated in this great article by Bo.Sanchez, to read the whole blog click here..
Thank you for visiting my blog and see you in my next post.May god bless you!
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