Article by Tony and Julie Pells
Some people think that if they make a good income, then they’re rich. A healthy income is a good way to start to be sure, but is not a guarantee of wealth. Wealth is nothing more that ‘left overs’, i.e., funds that are left over after the income has been spent. So if you earn a six-figure income but then entirely spend it on frivolous things, you’re not creating wealth at all. You’re living a nice lifestyle to be sure, but you are surely not preparing for the future.
The fact that wealth is what’s left over after the money has been spent is a fundamental element of creating long-term financial success. Understanding how to contain costs and to moderate expenses so that there is money left over at the end of each month is essential for anyone looking to solidify their financial future. Controlling spending is as much a matter of personal self-discipline as it is about education and in understanding how money really works.
Many people have no hopes of creating wealth and long-term financial security because they don’t make enough money to do so. Even if they’ve cut expenses to the bare-bones, their income is only sufficient to pay bills. This makes investing impossible. Because of this, once a person determines to solidify their financial destiny, they must first make sure that they have the adequate funds to do so. If the present job or career is not providing sufficient money flowing into one’s bank account, the individual must either take on another job or, alternatively, start an entirely new career.
Of course, if there is enough money to begin building a retirement portfolio, the question arises as to what is the best way to preserve long-term wealth. Anyone who is heavily invested in the stock market or in real estate has learned a bitter lesson as the recession has caused the deterioration of untold fortunes. Understanding the nuances of finance and effective investing is an essential and critical skill for someone seeking to achieve financial security.
The best way to address these issues is to obtain a comprehensive financial education. Most people do not manage money well because they’ve never been trained how to do it. It is not uncommon for people to learn about money and investing from friends, associates, and family members. More often than not, these people are not qualified to render such advice. A solid and sound financial education can help someone understand the tricks and techniques of successful investing.
So you claim that you are not concerned about your financial future? Think again. You should be. Ensure that you have sufficient income to put money away every month towards your future, and then take the necessary steps to learn how to do invest those funds effectively.
About the Author
Tony and Julie Pells are business coaches and mentors that assists serious entrepreneurs in building a profitable online business with multiple incomes streams. Their team has assisted hundreds of people in generating profits that exceed 0K or more in their first year. For more information and to contact Tony and Julie Pells visit http://www.tjwealth.com
