Financial Management 2
Here are two wealth building models. Everyone wants to make more money, but people are generally split into two catergories:
Those who bring results in after they are promised wealth first
or
Those who bring in the results first, then are rewarded by others afterwards
Those who act on bringing results in only after being promised big fat cash rewards are people such as employees, freshmen, or mercenaries.
There is no right or wrong with this method of thinking, but consider, you are once again, trading your precious time for money. Instead of investing your time in an asset that generates money, you spend your time working on something that is short term, limited wealth, and does not give you income after you have finished working.
Consider as well the fact that this kind of short term vision will only provide limited or temporary results at best. Furthermore, the part where our emotions get the better of us is when we allow our lives to be run by chasing the pound (or whatever your local currency is there). It is evident whenever an employee is offered higher wages, more medical benefits and longer holidays, that their heart starts pumping faster.
An higher salary doesn’t mean less financial problems. On the contrary, when your income goes up, your commitments, your tax bracket and your time spent in your company increases.
The Greater your salary, the weaker your position because if your boss is paying you a five figure salary and calls an emergency meeting at 3am in the morning, you had better rush over.
Here’s the best definition of an employee/employer relationship: An employee will only do the bare minimum to keep the boss from firing them and a boss will only pay the bare minimum to keep an employee from leaving
Now, the second group. There are many creative people, inventors, entrepreneurs and business leaders who fall into this catergory.
An entrepreneur is someone who has good ideas
The first obstacle we need to overcome if we want to succeed in creating wealth for ourselves is to stop working for money Only work so as to gain the necessary skills you need to be a successful entrepreneur (or investor, or inventor). Working just for money is a big mistake - you should be working to invest in yourself as well. Such as:
If you lack the contacts for running a business, where would be the best place to look up those contacts? Of course, your competitors customers.
How about product knowledge? Then work for a company that will teach you all the in’s and outs and tricks of the trade.
Not familiar with the production line of a factory? Work in one! Learn the ropes or manage the workers.
Hate talking to people? Get a sales job where you will be forced to talk to lots of people. This is also a great way to develop perseverance!
The best education anyone can get is Real Life not lecture halls, colleges or universities. Not everyone has what it takes to succeed as an entrepreneur!
It’s not that easy though. Many lack perseverance, the creative mindset, the financial capabilities or the necessary people to get the job done and usually give up too early before any results can be seen! The fastest way to get those skillsto succeed is to learn them hands on and you even get paid in the process. Don’t get absorbed with how much you are paid.
Let’s re-summarise: Would you trade time for short term money? (Money stops coming in when you stop)
or:
Trade time and money for a long term asset that generates you income (Even long after you have stopped).
God created us with a brain. All we need to do is look around us and observe problems to overcome because every problem is an opportunity in disguise.
It’s up to you, no one else. You may or may not see the results in the short term, but by using your brains and the resources around us, we can create true value that others are willing to pay for what we have to offer.
Let’s summarise the three ways of making money:
Trading time for money - employees, self employed
Manifesting and using creative ideas- inventors, artists, programmers
Leveraging on resources and other people - business people, leaders.
If you are a professional, have you ever explored writing an e-book about your field of expertise? If well written, it could provide a new income stream, instead of you selling out your time serving your clients.
How about a computer programmer? You could come up with your own revolutionary product instead of selling your ideads to the company you work for.
How about real estate and estate agency? Instead of selling houses, you can pool financial sources to buy houses cheap, increase their value and sell them at a higher price. It just takes time to research and find good ideas.
Is money a problem? Take out loans if you can take the risk. Pool money from many investors or seek a grant. The sky’s the limit when it comes to making money.
Again, which way do you want to achieve wealth?
Answer: It’s totally up to you.










