All of us work for success, security and most importantly for money. We inevitably get into a rat-race to keep running after work and money throughout our life. Every professional be it a doctor, lawyer, consultant or an IT professional sell the time and skills in exchange of money. In other words, till the time you offer your time, you will earn money; once you stop trading your time you will not be able to earn.
YOU WILL BE OUT OF BUSINESS – the deadliest fear is that. However, this fear or unavoidable stage in life can become easier if your currently earned money starts working for you. YES, YOUR MONEY CAN WORK FOR YOU.
Let’s see how money works for you?
More the Money More the Spending
‘Money will solve our problems’– it proves to be a mere assumption. As Robert Kiyosaki says, “Often, the more money you make the more money you spend; that’s why more money doesn’t make you rich – #assets make you rich.”
To give you an example ÃƒÂ¢Ã¢â€šÂ¬” your current income is like fulfilling your water requirements by bringing water buckets every day from the river. But, can there be a pipeline which will automatically bring water to you without requiring carrying buckets for your entire life?
Yes, the pipeline can be created with the help of FINANCIAL EDUCATION.
As the above quote by Robert Kiyosaki rightly says ‘assets make you rich” your efforts should be towards asset creation.
1. Contingency Fund
Create an emergency fund which is in an easily accessible form. This fund helps a family to sustain in any type of unexpected situations.
2. Risk Mitigation Plan
Get the help of the right Life Insurance and health insurance plans. Being ready for any type of risk proves wise in today’s unpredictable world.
3. Pay Yourself First
What do you save today? Usually, all of us save whatever is left after paying the mandatory expenses like various EMI’s and bills. Give equal priority to your savings; make them a part of your expenses. Don’t ignore savings, pay yourself FIRST.
4. Investment Portfolio
This is where you will make your money work for you. How you invest your money and make it work for you efficiently will open the gate of your financial freedom.
In the initial phase, you need to curb your urge for Instant Gratification (Spending) and understand the importance of Investment. This will give you a result in the long run by providing you steady investment income and your FINANCIAL FREEDOM !!!
5. Take Interest in Money Management
Though unfortunately, our traditional education system doesn’t have any place for Financial Education, training yourself in money management is easy. However, doing investments by following the advice of friends, relatives or any online platforms cannot be helpful all the time. Educate yourself in money management with the help of professionals.
These 5 essentials would advantageously help in making your money work for you and thus having a secured and relaxed future.