Have you ever been told to put 10% of your income into a savings account?
It’s kind of a “generic rule” towards a more prosperous future.
And it holds some weight…
Putting some of your earnings to one side, which will accumulate over time and earn interest which will compound to bring greater and greater returns, is a good strategy…
One which many wealth investors know about.
However, just sticking some money in a savings account won’t bring you much astounding wealth, not when interest rates are at 2ish percent.
If you look into millionaires and how they earned their wealth, most of them have multiple streams of income.
Even if they are employed, they will put aside some earnings, not to savings but into high return investments such as sound business startups, property, precious metals, art, wine… there’s so many different investments that can be made.
What this does is creates a regular return, which if re-invested brings in even higher returns. Over time this compounds over and over to create a vast side-income from their regular income.
You could have many side investments that may make you pennies each month for now, but can compound to make you a few pound per month next year, and a couple of hundred each month the next year, then thousands, then hundreds of thousands… which will soon add up to make you millions between them all.
This is something I’m striving for.
As an employee my main income is from my wage which I currently am completely reliant upon.
Trading is one place I invest into. That investment is mostly into learning, with a small investment into a trading account to trade with.
Another place I invest into is a small business I’ve started but struggled to get off the ground. I’ve put a fair bit into this for paying for advertising and website hosting fees, marketing, software, etc… it soon adds up.
These investments are yet to bring me any returns so far… but each day I work on them and learn how to improve.
Sometimes you have to take a step back and review…
- What’s been good?
- What’s been bad?
- What should I, or could I, have done better?
In other words,
- What should I stop doing?
- What should I continue doing?
- What should I start doing?
This is what I’m spending some time working on this weekend.
After recently reading “Money, know more, make more, give more” by Rob Moore, I’ve decided to apply many of the lessons learned into areas of my life, particularly my side business.
Ultimately money is attracted to us when we offer something of value to others.
By starting off giving, we end up receiving which enables us to give more in the growing wealth cycle.
Those who earn through illegal or fraudulent means will ultimately end up losing it and the hiccup in the wealth cycle will correct itself.
So in my business, I need to be able to offer excellent products, a great customer service, and value for money too. Also from my business, I want to be able to allow the real talent behind the product an opportunity to continue to earn from their passion… art.
Also, I can use this business to not only help raise funds but also awareness of causes that are personal to me through the power of art.
It’s time to knuckle down and create a business plan. A step by step guide to getting started and creating real focus and value.
It’s time to work out how to create processes in order to automate the business and eventually hire staff to take on the tasks that I don’t particularly enjoy, freeing me to do the tasks that I do enjoy… like socialising with artists!
This investment of time and money will cycle back round to generate an ever increasing income for me, as well as a continuous investment in trading and future investments too.
It sounds like hard work! But taken one small step at a time, each next-step isn’t that hard. Create a plan and you know what to do next.