Have you ever thought about this simple fact of life – that no matter how much you earn, you will always find a way to spend it? It’s true, isn’t it? And not just for you, for everyone, poor and rich alike. It’s only the very naïve who think that they are the unfortunates who do not have enough money and the rich people have it all. But the truth is, everyone feels the pinch, everyone ends up spending almost as much as they earn and everyone feels a little more money every day, every month or for every project would have been better! Starting from the general middle class burdened under their credit card bills of last month to the biggest celebrities and business men of the word who earn billions, only to go bankrupt, people somehow always find a way to spend what they earn – whatever be the amount.
The reason behind this phenomenon is pretty simple…the usual mantra in people’s lives is ‘Work – Earn – Spend – work again – earn again – spend again’ and this cycle goes on month after month, year after year, for everyone. Think about it, isn’t it the story of your life too? So essentially what you or everyone else is doing is financial trading. Yes, as a profession, you are a financial trader. And what you are trading is your time, for your income. In simple words, you are the money making machine in your life. You work and you trade your time for the income you get at the end of the month. Simply put, you are trading what you value the most against what you need the most. Time vs. Income.
So where is the problem? The problem is simple, as a financial trader you are in the worst trade possible. Don’t you see? You can always get more money, but will never get more time! The ‘time-for-money’ trade is definitely a ‘lose-lose game’ for you, as for all others without people really realizing it until it’s too late. If you as a money making machine stop for some reason, your entire cash flow stops then and there. So what can you do?
To start with, it’s time for you to stop being in the sidelines of your own life and get back into the game fair and square. You need to stop being a financial trader and work your way towards your own financial freedom. Change your mindset from working for money to something where money would work for you. In simple words, you need to stop being a money making machine for yourself and create another machine for yourself which would make money 24×7 even when you sleep.
The answer – investments. And wait, I’m well aware of the Fixed Deposits and the LICs of the world you already have, everyone has them. You have made them with savings in mind, not really income. What I mean is utilizing the power of the compound interest in order to create a money making machine for your own future life…for you to be truly financially free!
A tax on yourself
Think about this, if the government would have levied a certain percentage of tax on your income every month, you would have had to pay it, isn’t it? So why not start a tax on yourself for your own future? Yes, so what you need to do, essentially, is to set aside some money untouched from your paycheck every month (irrespective of whatever happens in your life!) and accumulate it in an environment where you feel it is safe. The magic wand of the compound interest will be your alternate money making machine which would give you the gift of financial freedom before you realize it! In the end…you will be left with both the money and time to spend on things you truly love!
So what are you waiting for? Create your money making machine…right from today!