I am sure you are having an amazing life so far.
The lights and heat are on and you have a nice little nest egg saved up. If you were to lose your job tomorrow, you are able to cope with the financial pressures. You have enough money saved up to cover at least 6 months of living expenses.
Uhhmm yes…or maybe not.
If you are reading this you are in a fortunate position. For those who can internalise and make sense of it, you are in an even better position. Or best scenario, you don’t need any advice since your pockets are lined already.
Good for you, too.
However, for the rest of us mere mortals, let’s put our heads together and start turning the soil.
There are only two rules.
- Spend less than you earn.
- Don’t forget rule no 1.
- The millionaire next door carries a brown paper bag lunch to work.
- The millionaire next door is driving a 10-year-old Toyota Carolla.
- He doesn’t have the latest iPhone.
- He doesn’t party every Friday night.
- He knows exactly how much he has in his bank account, down to the last cent.
- You would think he never gets a raise because he always looks the same.
There are so many things we think we need. The Joneses have it all. If you could only send them your cat food bill at the end of the month.
There are two sets of people in life. Those who are living the life right now in terms of enjoyment and consumption. Then there are those people who are investing in themselves and decided to put off ‘enjoying’ until later on.
Have you ever noticed those people whom you see jogging day after day? They are the ones who seem not to need to jog. But that’s why they are fit. Those who are wealthy work at staying financially fit. But those who are not financially fit do little to change their status. — The Millionaire Next Door
Every day you get up and get to work on the groundwork of your life. You don’t take for granted that one day you will retire on a great retirement package and have enough money for all your needs.
We count on tomorrow as if it were guaranteed. There is so much that can happen. Unexpected life changes like retrenchment, falling ill, divorce. Will you be in a position to absorb those financial shocks?
No matter what your financial position is right now. It can always be better. You need a mindset shift, from consumer to investor.
Who and what you are today is directly proportional to the investments you have made earlier on in life. Right now we are in the planting season. It may not be pretty, but it will be worth it.
The harvesting season will come.
With finances, like anything, prevention is better than cure. Don’t think it won’t happen to you. And myth number two. There is no time.
Live life on the offence. Ready for anything. Always.
I can, I will, I must.