Why Can't I Be Rich?

Posted in: Talk About Money in jbravo's Blog

Before you decide to be rich, you should spend some time thinking about what it means to you to be rich and why you really want to be wealthy. Do you need a million dollars to be rich? How about 100 million or a billion? Could you be rich with just $10,000? What if you had a million dollars but were so sick you couldn't get out of bed? Would you still be rich? If you become rich but lose all your friends or lose your soul are you really wealthy?

The first step to becoming rich is to create your vision. Where do you want to be in 5 years? or 10? Do you want a huge house, swimming pool, or Rolls Royce? Do you want to be able to send your kids to the best schools or support your family in their old age? Do you want to be financially free so you can go on missionary trips without fear of lost finances? Your vision must be sound, real and exciting to you. Write it down now and look at it daily.

The second step is to set goals. These are the steps in your path to wealth. These goals should be based on: initial income for living expenses, small investments, multiple streams of income, large investments and freedom. Read Robert Kiyosaki's "Rich Dad Poor Dad" now.

First, you will need a job. Any job at all that will pay for your living expenses while you become wealthy. Whatever your income, you must put as much of it into savings as you can. This will be your seed money to wealth. If you make $10 and hour or $80,000 a year, you should save at least 10% each paycheck.

Residual income is a way to create income while freeing up your time. "Do the job right one time and get paid for the rest of your life." You initially invest time into a project and later reap a continued reward. Song writers such as Elvis Presley wrote many hit songs while he was alive. His rewards were so great that even now his daughter receives income from his estate-to the tune of over 40 million dollars this year! Another way to develop residual income is to write a book. Authors receive income from every book they sell. Actors, Producers and others also make royalties every time their movies are shown. Think about it.

If you can't sing or write a book and if you are not a Hollywood actor, another way to develop residual income is by developing a network marketing business. The initial investment is incredibly low, the cost of doing business can be kept very low, and the rewards can be huge. There are thousands of networking companies out there and many could afford you a substantial income. How you choose which company will be dealt with in another article.

Once you have saved the equivalent of 3 months take home pay from your savings and your network, you can begin to invest. You can invest in penny stocks, other stocks and bonds or any of several market instruments, antiques, real estate, or businesses. You should invest wisely which will require that you spend time doing research in to become extremely familiar in the area you choose. Be independent in your investing. "Group Hug" investing like mutual funds or anything that catches the eye of the herd: gold, real estate, or even stocks at the wrong time will cost you more than you can imagine. If everyone is buying, you should be selling. If everyone is selling, guess what you should be thinking?