 |
| If I'll become rich, I'll definitely buy a beach side mansion. |
I want to become rich and powerful. With all the money I have, I can easily buy anything my heart desires. House and lots, cars, luxury items, anything! The financial freedom with give me a wealthy and comfortable life in my beach side manor.
How about you?
Do you want to be rich?
I can read what's on your mind. You said yes right? Don't deny it.
Then you might be asking...
How can I become rich?
Personally, I'm not yet rich, I'm still on my journey to financial freedom. But I've created a roadmap to guide me on my journey and this blog post is to share my plan to you.
A caveat though, it might be helpful, or might not. Who knows? Besides, if you want a solid advice about being rich, then you should ask advice from rich people. But at the end of the day, fulfilling a goal or dreams depends on one's will and grit.
If you're still reading this part, I will assume that you're still enthusiastic to know more. Without further ado, let's get down to business and talk about the simple but difficult plan on how to be rich and financially free.
Note: This guide is specifically targeted and applicable for Filipino people like me.
1.) Learn how to save money
Robert Kiyosaki, an international best selling author who written one of the famous financial book called Rich Dad, Poor Dad said that "savers are losers."
Well, technically, he's right. Savers are losing because of inflation. But how can we build up capital to invest in the stock market, mutual funds, UITF or PAGIBIG MP2?
If savers are losers then where can we get the funds for our future business plan or expansion? Is it really wise to borrow from banks to when we want to start a business? Always remember that starting a business comes with a huge risk so it's better to start small with your own capital.
If we won't save money how can we stack up our emergency cash that is vital part of our financial arsenal? What if someone we love gets in a emergency? Where should we get our cash to pay for the hospital if we are not saving money?
As you can see, saving money is one of the necessary thing you should do in order to possess a stable financial foundation. Saving money will build up your capital, emergency funds and cash flow, the important things you need to temper in order to become rich and financially free.
As simple as it sounds, but in reality, saving requires a lot of discipline and willpower.
But once you learned some easy tips to save money and get the hang of it, you'll be rewarded with a stockpile of money that will serve as the seed of your wealth.
2.) Learn how to invest
Investment is like farming. You need to plant the seed in a rich, fertilized soil and nurture it until it bears the fruits.
There are a lot of legitimate ways to invest in the Philippines and in this topic, we will briefly tackle about some of the most promising ones you should consider.
• Mutual Funds - Investment program that invests in diversified holdings (stock market, bonds, and currencies) managed by professional fund managers.
Since someone else is managing your money, the returns will depend on his/her skills and market condition.
Investing in mutual funds is simple and hassle-free, just go to your bank and ask if they are offering a mutual fund investments.
It is advised to allocate a part of your monthly savings for your mutual fund investment.
• Stock Market - Venturing in the stock market is a rewarding investment opportunity but be wary because it can also reap your capital with ease because of its volatility.
Before you decide to step inside this treacherous world, I advice you to learn the basic of the stock market on YouTube videos. Gradually expand your knowledge until you find out what is your affinity, are you a trader or an investor?
Once you learned enough, download Investagrams apps and start trading or investing virtually to familiarize yourself how it works.
If you're ready to lose money, it's the time to choose a broker.
Stock market will definitely reward you with huge returns and profits but it will rob you if you entered without preparing your strategy. It is a dog eat dog world.
• PAGIBIG Fund MP2 Savings Program - This is a savings/investment vehicle of PAGIBIG that gives a good returns of interest and dividends for five years.
This is really helpful for people who wants to save and earn from interest and dividends at the same time. For as low as 500 a month, you can start investing.
If you're currently a member of PAGIBIG or a former member who have new source of income, then you're qualified to join. Just go to http://www.pagibigfund.gov.ph/dlforms.aspx to find out more.
• Insurance - Health is wealth and here in the Philippines, hospitalization cost will quickly kill your bank account, your investments and your wealth until the high price of medicines and hospital room slowly kills you.
That's the reason why you must get an insurance. It will protect your wealth and your family from sudden illness, accident or demise. Sounds creepy no? But it's the garsh reality.
• Invest in a business - This is probably the crucial part of this get rich plan. A profitable business will definitely give you huge boost in income and there's a lot of room for growth.
The problem is, many businesses fail because of different kind of reasons. Tough competitions, low sales, zero to negative profit, etcetera...
That's the reason why you should do a proper feasibility study to discover your market and products and learn how to manage the business.
• Invest in yourself - This is probably the best investment you can get in a lifetime. Making yourself better and wiser means more opportunities to make and grow your money.
Now, you might be asking, "how can I invest in myself?" it's actually easy but requires you to exert effort.
I recommend that you make it a habit to read books every night before you go to sleep. Choose books about self growth and financial knowledge to increase your knowledge on wealth and managing your finances. You can also read success stories to inspire yourself to keep on pursuing your dreams.
3.) Increase your income streams
The time will come where you will notice that your monthly income is not enough. The cost of everything will go high up in the sky but your salary remains in stagnation.
How can you achieve freedom and wealth if your cash flow keeps on declining?
The answer?
Increase your income streams!
The salary from your day job is good as long as it can manage to tank some of the crucial monthly expenses. But if everything else is getting tough or you just want to save or invest more, then a new source of income is always welcome.
As long as you're willing to go out of your comfort zone, you can find a lot of ways to increase your income. To give you some idea, I'll give examples of profitable side jobs to increase your income.
• Blogging - If you love writing about a certain topic (gardening, accounting, stock trading, financial education, and more!) and documenting it so other people can read it, then creating a blog might interest you.
You can earn from different online advertisers like Google Adsense while people are reading your blog. Your income depends on how many people are visiting your site so this is a slow and steady grind but rewarding and self-fulfilling.
• Amazon KDP - If you have a talent in writing engaging stories, you might want to check out Amazon KDP.
In this platform, all you need to do is write a novel, or a collection of short stories and upload it to Amazon KDP. People who use Kindle will be the one who'll purchase your works and once you reach the payment threshold of $100, Amazon will mail you a cheque.
• Vlogging - If you've got what it takes to be the next YouTube star, then get your cam because vlogging might be the right job for you!
Create entertaining videos, edit it and upload your edited video on YouTube. Keep on doing it until you can form a good amount of audience. Once you did it, it's time to put advertisements in your videos and earn from every views.
• Online Jobs - You can find many jobs online that you can do during your free time. Go to websites like Fiverr and Upwork and find a work that suits your skills.
That's just some of the side hustles that you can find online. I'll write a comprehensive guide on how to increase your monthly income so be sure to check it out if you want to know more.
4.) Fulfill your reasons
We all know that life is tough and filled with heartbreaking challenges. During your journey to reach for your goals, something will try to stall you, until you bogged down and slumped.
During this trying times, don't lose hope and keep on moving forward.
Be consistent with your actions.
Be consistent in moving forward to reach for your dreams.
We all want to be rich because we all have our own reasons. Never forget that reason and use it to lit the fires of motivation.
Never surrender. Never quit. Every challenge you conquer will make you stronger. Be rich, fulfill your reasons.
Cheers!
Comments
Post a Comment