There’s so much to know about the subject of money.
Money is an unlimited subject. However, like any subject, you can learn as much as you want about money. Personally, I’ve devoted my whole entire life to understanding money and the way people feel toward it.
For 21 years of my life, I experienced poverty on the deepest level. Because of this, at age 21, I decided to take my life into my own hands. Over the years, I’ve developed the understanding of what it takes to go from negative R1 700 000 in debt to complete financial independence within a relatively short period of time.
Obviously, we all need to understand that there are three stages of dealing with money: Learning, Earning, and Returning.
If you want wealth, you must learn about your thoughts, feelings and actions toward money. Then, you must start to find a way to earn your way in this world. Along the way, you return yourself and your money in the best way possible.
Here are three truths every millionaire knows about money:
1Be a serious student
If you want to learn about money, you must study it closely. You can find countless numbers of successful people who wrote books and articles, gave seminars and produced videos on the subject.
All of these resources are readily available to you. Moreover, if you want to learn about money, don’t depend on your parents, school, work or other organisations to teach you about it. You must take matters into your own hands.
When I began my journey to wealth, I consumed read books copiously. I highlighted, underscored, bookmarked, recorded and reviewed every piece of wisdom I could find. When I got to the “about the author” section, I researched and called upon the author to have a conversation, connecting nearly half of the time. I also attended dozens of seminars and learned from every rich person I found.
If you want more money, you need to learn from rich people. Most of the people around you cannot teach you about wealth because they know very little about it themselves. That’s why I wholeheartedly believe that you should hire a professional coach. Once you do, you can apply your knowledge to advance to the next level.
Besides reading books and talking to people, I learned about living a wealthy lifestyle by doing wealthy activities: Visiting museums, test-driving luxury cars, touring mansions, indulging in fine restaurants, etc. Your financial education can come in various ways. If you constantly put yourself in wealthy places, you will become a wealthy person!
As Mark Twain warned, never let schooling interfere with your education.
2Don’t save money
If you want to become a millionaire in under 10 years, read this section very carefully: Don’t save ALL your money if you want explosive wealth. Let’s say you’re a healthy person between the ages of 18-55 and have an income of R600 000 per year. If you work for the next ten years and save 10 percent of your money, you’ll be able to save R100 000 per year, which will be R600 000.
However, if you poured the majority of your yearly R100 000 into your personal and professional development, your income will steadily rise each year. For example, in my first three years, I’ve more than quintupled (5X) my income.
I didn’t start saving money until my 3rd year, which was when I became a millionaire. Each year, I invest more and more money into my coaches and programs that help me grow.
Even if you invest half of your yearly savings (R30 000) in yourself, your income would still increase rapidly. It might look like this over five years: Year 1: R500 000, Year 2: R700 000, Year 3: R1 000 000, Year 4: R2 000 000, Year 5: R3 000 000. As you can see from this projection, money would be easy to save by years three to five. Imagine if you kept up with this cycle for 10 or more years!
Most of us are taught to “save for a rainy day.” Instead, invest in “sunny days,” which are days of growth and prosperity. Moreover, if you keep investing in yourself, you’ll be able to buy an umbrella to keep dry when “rainy days” come.
This unconventional advice might sound risky, but those who are able and willing to do it will enjoy the journey because of their constant advancement. Eventually, you’ll also be able to save more money in the long-term.
Your level of income will never surpass your level of personal development.
3Know your money
A surprising amount of people do not know their financial affairs as well as they should. In fact, most people put their personal finances on “auto-pilot” and acquiesce in life without checking the facts.
The following systems prove this: Direct deposit, bonuses, taxes, receipts, retirement plans, interest rates, credit cards, donations and college loans.
Here are some examples of financial disasters:
- College students who don’t know how much money they owe or even how much they’ve paid.
- The average citizen who doesn’t know where their taxes and tithing are being distributed.
- The majority of people who discard their receipts when they get home.
- Salespeople who don’t know what their commissions or bonuses will be on payday.
- The 90 percent of people in the world who face anxiety when the monthly bill arrives.
- The direct depositor who automates all of their bills for decades and never has savings because of it.
- The credit card holder who pays exorbitant interest rates, penalties, and fees.
- The overwhelming massive number of people who let their employers handle their retirement planning, health benefits and life insurance.
A life insurance agent told me a story about a woman who had her insurance policy automatically deducted from her paychecques every month. After a while, she forgot that she was paying R1 700 per month. However, she was greatly dissatisfied when she found that her bill skyrocketed to R17 000 per month because of her husband’s age. She ended up paying over R170 000!
Incurring unnecessary fees should always be avoided. A simple way of handling this is by monitoring every dollar you spend on a monthly basis. Keep a ledger nearby and talk with your spouse about money. Never let a dollar slip past your sight. Overall, you should know exactly what’s in your bank account and face the truth about your personal finances.
Related: 7 Tips to Becoming a Millionaire
Take your money seriously. Don’t avoid it by delegating or automating it! Handle your money directly and be sure to keep track of all your expenditures. Always be willing to get help from people who are good with money. Money only comes to those who are ready to handle it. If you take care of R15 000, you’ll get R150 000 and much more!
This article was originally posted here on Entrepreneur.com.
(Infographic) The Financial Advice Millennials And Gen Zers Want To Know
Having a grasp on your financials is tricky, but it’s crucial if you want to be successful. And that starts with getting the right advice.
Whether it’s saving for retirement or paying off credit card debt, money management can be a challenge. Of course, different people have different concerns – and that often comes with age. While a 60-something baby boomer might be organising their savings for retirement, your 20-something millennial might be focused on paying off student loans.
In a recent study, financial intelligence company Comet surveyed more than 1 000 people to uncover the top financial concerns of various age groups, as well as the financial advice millennials and Gen Zers want to know and what they hear instead.
Overall, saving for retirement was the top concern across all age groups, with saving for an emergency and affording monthly bills following in second and third. However, it’s no wonder these are some of the most pressing worries – according to the research, 23 percent of people admit they don’t have a savings account, and 43 percent reported not being on track towards their retirement goals. Perhaps that’s because they didn’t hear the right advice growing up. At least that might be the case for Gen Zers and millennials.
According to the research, these young people want to learn things such as how the stock market works, how to manage an investment portfolio, how to invest in real estate and how to build credit. Instead, they’re simply told how to create a budget, save for retirement and pay credit card bills in full every month.
Having a grasp on your financials is tricky, but it’s crucial if you want to be successful and comfortable. To learn more, check out Comet’s infographic below.
This article was originally posted here on Entrepreneur.com.
14 Ways To Make Quick Cash On The Side
If you need money quickly, here are some solid ideas.
Need to make some fast money on the side, whether it’s to pay off a credit card or to make your rent?
Keep in mind, making quick side cash isn’t about making a lot of money or getting rich. It’s about getting a shot of capital to help tide you over and put something extra in your pocket. However, some of these side-income ideas can build up your wealth over time. There’s many ways to accomplish this: By participating in the gig economy, the sharing economy, online sales networks, passive income techniques and more.
If you’re looking to make extra money in a relatively short period of time, check out these 14 slides.
Take Advantage Of Financial Democracy Made Possible By The New Stock Exchanges
Why should financial democracy matter to entrepreneurs?
Because it creates a society able to afford products and services. Without it, even the innovative products and services that are entrepreneurs’ bread and butter will fail.
What is financial democracy, exactly?
It’s both the right and the ability of the (wo)man in the street and business people to make the decisions that affect their financial circumstances.
Financial democracy does not automatically follow political democracy. For almost 25 years after South Africa’s political transformation, the exclusiveness of our financial markets continued to deprive the vast majority of South Africans of the means to invest, save, and build wealth. South Africa has, therefore, never developed a retail stock exchange environment. So, it has deprived the majority of small and medium sized business of access to capital.
For entrepreneurs to truly flourish, they need a mechanism that easily and seamlessly connects the investor pool with every size of business. And, they need affordable ways to enter both the retail and institutional market.
In short, they need stock exchanges. Ones on which listing takes weeks rather than years, doesn’t break the bank for listing fees, and provides the shortest route to the largest possible potential investor base.
That’s not been possible in the stock exchange monopoly that existed for six decades. Now, it is.
We now have four new stock exchanges. The resulting competitive environment will significantly reduce the cost of listing – and the cost for investors of buying and selling shares.
Instead of restricting share trading to people or organisations who already have tens of thousands of rands to invest or millions to spend on listing, by licensing four new stock exchanges, the Financial Services Conduct Authority (FSCA, formerly the FSB) has recognised that most financial decisions do not call for high levels of education.
Most people know how to spend their own grocery money. Most know that it’s better to keep their R1 000 monthly income in a coffee jar than spend R50 of it on bank account fees. People who can barely read and write are immensely skillful at manipulating air time deals to their advantage.
There is significant financial savvy in all social strata.
In the same way, although the mechanics of bookkeeping and accounting may be unfamiliar territory to many entrepreneurs, most have a clear understanding of the difference between profit and loss.
The FSCA has therefore enabled democratisation of the financial markets by enabling the broadest possible spectrum of entrepreneurs and investors to use stock exchanges to participate in and contribute to the economy – on their own rather than prescriptive terms.
How do you take strategic advantage of this democratisation?
- Base your business strategy on people’s instinct for making decisions in their own best interests. Trust financial decentralisation, such as one sees in crowd funding and in digital environments such as block chain, where people would far rather trust one another than institutions and governments. This is democracy innately at work in the financial environment and it’s accelerating organically as digital technologies give people more means and the confidence to help themselves – to information and opportunities. Ride the wave.
- Tap into people’s desire to innovate. Consumer organisations have proved that letting people interactively help them develop products is a powerful growth engine. Apply the principle by letting people grow your business by buying shares in it, giving you capital and themselves a platform on which to build wealth.
- Remember, the ultimate loyalty reward is equity.
Your financial democracy business plan
Look to list on an entrepreneurial stock exchange; one that was founded by entrepreneurs on entrepreneurial principles.
That means: A stock exchange that is already built on financial democracy and decentralisation. One that has, at its core, a single operational concept that keeps things simple for you, automatically gives you an immediate competitive advantage, and, ensures that no matter what your business needs in terms of attracting capital, the exchange can provide all the options in the same, consistent way.
What does such an exchange look like?
It has fintech capabilities. So:
It slashes your listing costs. It achieves this, among other things, by enabling you to populate an electronic prospectus, demonstrating your financial viability, and self publish.
It gives you control by having the granularity and agility to impose relevant governance right down to the individual investor. You get to decide the types and quantities of investors you want to attract. This also enables you to achieve black economic empowerment in perpetuity.
It leads the world by clearing and settling trades in T+0. No-one in the value chain has to hold large sums of money for days following a transaction. Small transactions become profitable. Investors don’t have to risk their life savings on a single large trade. A retail market is opened. An investment and savings culture is entrenched. The economy expands. Your business grows steadily.
It enables anywhere, any time trading via a mobile app that allows investors to see share value in real time. See economy expansion point above.
It integrates processes and procedures, simplifying them and ensuring rapid onboarding of issuers and, therefore, speed to market with new concepts and alignment with the digital economy.
It operates a principles-based regime. So:
It treats you, as an executive, with respect. It’s not prescriptive. It does not insist on excessive oversight, allowing the Companies Act to guide you to sustainability.
It does not attempt to squeeze your company into a pre-defined business or listings format. It recognises and works with your uniqueness.
It obviates the need for expensive specialist listings advisors.
It focuses on financial inclusion and access. So:
Shares can be bought and sold for no more than R1 000. See economy building point above.
The new world of stock exchanges is integrated, synergistic, holistic, organic, self-fulfilling
Decentralisation of financial control, democratisation of opportunity leads to a whole new economy. One in which, for instance, a taxi operator can finance a minibus through a company in which his purchase gives him shares. A single purchase gives him two benefits: a vehicle on which to found his business and a longer-term investment in shares that he can trade. The funding company gains liquidity through access to a wider base of investors while being able to control who buys and sells and the conditions on which trading takes place. Increasing black equity in business becomes an organic, natural, self-perpetuating process.
Everyone wins in a decentralised, democratised financial market. And it’s the stock exchanges that drive the process.
As an entrepreneur, can you afford to ignore the acceleration that listing could give your business growth?