Hello Guys,
We are back again with ADVICE FROM BILLIONAIRES: PART-II. We learnt moral advice from Billionaires' minds in part 1 of this series. In this second part, we are covering the practical advice on earnings and handling money. There are a lot of aspects affecting your earnings and assets. Let's have a look at those helpful pieces of advice so that you can have guidance for managing your financial life. Rich people shares that money has some crucial stages which should be followed to get adequate results. And those steps are as follows:
Earning
The first stage where the journey of money starts is Earning. Before you start your financial journey, you should have to earn first. Earn a decent income by doing a job or your own business. Earning is the first step that you should focus on. You can earn from different Active and Passive Income sources. You have a chance to build a good financial career if you're earning a good amount of money.
Must Read: Advice From Billionaires: Part -1
Diversifying
When you earn a good income. Then there comes a great question in front of you. What should I do with this money? Do I have a proper plan to use it? Can I take the best out of it? Answering such questions the rich people most of the time, always have the same answer - Diversification!
Diversification - Diversification simply means to distribute your earnings in more than one place. According to rich people, Diversification is the key to getting rich. (if you have a good income)
In general, there are three main categories to diversify your earnings. These three are as follows:
It is the most common step done by everyone after earning some money. Spending is a process to use your earnings for your personal or professional use. While spending can be good or bad, depending upon where are you spending.
It can be proved useful if you spend in a calculated manner. If you are able to minimize the total spend from your earnings then you can have a great opportunity to use the remaining earnings at a higher amount.
You must spend your money on useful or essential things. You shouldn't waste it on products that have no use in your life. You shouldn't waste it doing parties or shopping. You must spend less so that you have left more money with you. You can use this money by the two methods. And they are Saving & Investing.
When you are left with unused money, you may probably save it. But there is a contradiction to that point. Rich people say that do not save money but rather put it into the assets to Invest. While this is not the only thing you should look at. Saving money sometimes proves useful. If you have invested your money in any asset and the chances to withdraw that money in a short time are less. Then it may be the wrong decision not to save it. Because there could be any medical emergency at any time and you may need that money. So, don't just skip this part. It is also an important step.
But there are some drawbacks too. If you use your all money for saving then you're just keeping it safe but not multiplying it. It will not grow when lying in your safety case. So, what should you do? You must divide your amount and keep some amount for domestic and emergency use. And the remaining amount to invest.
When you are left with the money after spending and saving it, you must invest the amount left with you. You must build or buy assets so that you can multiply your money and generate income from it. Investing is the most crucial part which helps in growing the money by using money.
There are a lot of sectors to invest your money in. Sone of them are Real Estate, Share Market, Cryptocurrency and owning a business.
Thank You For Reading This Blog!
