Basic Rules for Financial Freedom: Make Wealth Happen
11 of 15
Build a Bit of Capital; Then Invest it Wisely
Lots of people don't get prosperous because, as we saw earlier, they are too lazy. But a lot fail because they don't know what to do when they start to earn some money. It's easy to think, after you've got your hands on a bit, that you have earned it, you deserve it, you're gong to spend it. You have earned it -- assuming you haven't robbed anyone to get it -- and, yes, you probably do deserve it. But no, don't spend it all now, no matter how much you want that new car, holiday, cottage by the sea, whatever.
I've done it. I guess we all have. I once got a massive tax rebate. I don't remember why I was being taxed so highly, but I was for several years, and when they repaid me, it was quite a handsome sum. And, of course, I blew it, on a spendid holiday. But that's the difference between the rich and the not so well-off. The rich see a sudden windfall like that as an opportunity to make some more money out of it. The not so well-off remain not so well-off because they see it as an opportunity to have some fun. Nothing wrong with that if that's what you want in life -- instant pleasure. But if you want greater wealth and pleasure (albeit delayed), then you must learn as I did that when you get your hands on a lump sum, or build some up, you must immediately put it to good use. And, frankly, the only good use is as a starter kit for prosperity.
And it isn't lost, merely put to one side to work for you. After it has grown and attracted lots more lovely money, you can have all the holidays you want. But you have to wait, and you have to use that starter kit well and wisely. Guides who make their living from tips find it wise to put something in the tip plate first. You have to put a coin or two in the plate or no one else will tip.
Street musicians do the same thing, put a coin or two into the hat to get the crowd going. No one will put anything into an empty hat. What you are going to do is load your prosperity hat.
Next: Think Long Term
From The Rules of Money Copyright © 2007, FT Press. Used by permission of FT Press, and Pearson Education. All rights reserved.
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