I used to think that the true meaning of being wealthy is to have loads and loads and loads of money. You know, an abundance of it, so much so that I will never have to complain of not ever having enough; so much so that I can always afford what I desire and at any time I want. You agree with me, right?
But if I do have loads of money and I also have loads of spending power, it means buying becomes an effortless and unrestrained venture. And if I get to keep on spending anyhow I want, it means that I will most likely be spending as much as am making. Now, what kind of wealth would I have if am virtually spending almost all I have simply because I think I have plenty money?
A serious word of caution. Nothing is perfect in this life, especially you. And so to think that you're altogether super just because you've started making some steady flow of money is a very serious error. It's the mistake many have made. One moment they have tons of money and the people around them plus the world will no longer hear anything else than their wealth; the next moment they are down and out and they so earnestly pray that the people around them and the world would stop noticing their plight.
Wealth is not defined by how much you make but by how much you retain from how much you make. How much you retain is the pot of gold you can always rely on because it is there for you unlike the channels of making money that may not always be available for you. And this is where you need to try to hone your money making skills on...practice the art of retention.
In earlier posts I did speak about having a good budget and the great benefits that it carries. However, a budget only works based on two telling factors:
(1) Sticking as much as possible to the budget you have prepared
(2) Making sure you don't spend at any whim the difference between your income and your expense, which is a result of you sticking to your budget.
That difference is actually your Cash Flow. And it is what you need to really take care of what you need to take care of should the need ever arise. If you keep on spending at will just because you seemingly always have money coming in, you will never have the cash to fall back on or use when the need arises. Your ability to manage how you release what you make is the best way to always lock up your funds and ensure that you can always have money on your hands. It's no magic, just pure discipline applied.
The money you work hard yourself to make or save is the one you will value and take seriously, because you knew the sacrifices you made and the efforts it took to make that happen. It's time to stop dreaming and instead wake up to face reality because the last thing you want is to suddenly come up short and then realize that you goofed when you truly could have been a whole lot better of.
Guess what? I don't have much but am never broke. Now, why do you think that is?
Please, pause and ponder a little about this. It will save you loads of money headaches in future. That's a promise.
You are free to leave comments on this post and the others before it. Your feedback would be greatly appreciated.
Cheers.
Isn't the whole point of retaining money to put it into sir else that will generate more?
ReplyDeleteYes, it is. But what I am saying is that we need to be more disciplined about how we spend because whatever we have left will always be the difference between our income and our spending. And, yes, what remains becomes veritable seed capital for investments that have the potential to generate more income.
DeletePersonally, I think saving is difficultm I come from a large family and most times I can't look away.However, I also know saving is a MUST. So what do I do? I give a standing order, a certain something must leave my account to another (no ATM acct) every month, its not much but at least it can be constant- as constant as my income by the way!
ReplyDeleteI am not trying to be sadistic or evil, but sometimes I look at such matters from another angle; which is, what if you never had? What would have happened? Yes, you have a little now and so are compelled. But what if you didn't? Sacrifices are necessary if we are ever going to achieve our earnest desires and so it is especially with money. I think a little endurance and sacrifice will still be the best for you because at the end even the large family will benefit from it. I know this because it is also my story...
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