Wealth, like a tree, grows from a tiny seed,” The Richest Man in Babylon.
As we look forward to our summer trips, we notice that the horizon ahead of us is quickly approaching. What better time than any to begin fiscally preparing for the summer….or for acquiring your fortune in general? Taking a few lessons from the famous George S. Clason, let us begin to move forward with our trip preparations now!
1. Fatten your wallet almost immediately. In additional to the 1/10th of each paycheck you should be saving naturally, set aside 20% more leaving you with 70% for daily living. What does this mean? A wad of cash to play with at the end of your savings period for….whatever. Think an extra $5-10 grand won’t get you very far? The former is enough for several weeks of luxury relaxation in Southeast Asia .
2. Control your spending. As Clason put it, what each of us calls our “necessary expenses” tends to grow with our income…don’t believe it? Take a superficial glance at the famous lives of the newly rich, athletes tend to serve as excellent examples. With this in mind, it’s worth noting that financial planners observe the chasm between the upper and lower class as being one of expenditures and not assets. The upper class has a sound grasp of maintaining and nuturing wealth through the elimination of superfluous spending. This comes down to not upgrading the phone, or anything that can be upgraded for that matter. Sleeping on the idea of any purchase should allow rationality to set in.
3. Acquire a second income. No, I’m not talking about a second job, the r.o.i. on a typical second job is rarely worth the time, normally amounting to the equivalent of spinning your tires… monetarily speaking. Lucrative second incomes are attainable, they just require a little creativity in today’s digital world. Here’s an idea, buy in bulk through a wholesale website (AliBaba comes to mind) and retail your purchases online through a website like Amazon. Low barrier to entry, and high return on investment if you research your product is sound (be sure the market isn’t saturated )and you advertise properly; it should only take a few days to set up as well . For right now, pumping cash into stocks won’t produce the desired result of quick turnaround so maybe avoid if you’re just two or three months out from your next trip.
In the near future we’ll visit the notion of earning money abroad. Do join us again.