Saturday, May 10, 2008

Job V Investment

Very few millionaires achieve their wealth from savings earned from a high paying job. In fact, it is difficult to get rich from your work. What are they doing that you're not?
The reality is that most millionaires are either investors or business-owners, not employees.
Saving your earnings to reach the $1 million mark is almost impossible. The low rates offered by banks, combined with rising inflation, make saving a poor strategy to reach the seven figure threshold. There is a reason that very few people ever actually save their way to a million dollar net worth.
The millionaire mindset expresses a completely different ideology towards an investment.
Millionaires look for the best possible return with minimal risk, while most investors simply look for the best returns. Wealthy people spend money differently... The millionaire views each and every purchase like an investment. They purchase assets.
Millionaires do work, but not for money. They work on systems, ideas, concepts that can leverage their time.
We all have one thing in common with everyone else... The same amount of time available.
Most people in the seven figure club got there by earning more than they needed to survive for
a number of years, while supplementing their fortune with consistent returns from quality
investments. Remember, the investor can make an infinite amount of money each year by putting money to work.
On the other hand, the employee who "saves money" is left with a job that can only pay so
much per hour and offer so many hours. Your opportunities are slim in the professional
world, but huge profits can be obtained with each investment dollar.
The investor can earn more in a year with a modest retirement portfolio than can be made
with a college education! Furthermore, future growth in earnings by investments is set by you.
Each time you roll your money over year after year, your principal grows, and the yearly
payouts rise as well. Very few professions accommodate for a 12% pay increase year over year.
Ultimately, there's only one solution. You either understand the fundamentals of investing and work towards becoming excellent... Or you can whinge and moan, working for a living for the rest of your life. Be prepared to put your ego aside, admit to yourself that life is not going as well as it should and start investing in your own financial intelligence now.

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