People often rely on their career as the sole source of their income. The problem with careers is that they come and go depending on what is needed in society. This year you could be employed making exceptional wages and like the engineers in the automotive industry the next year you could be putting your home up for sale. Independent wealth frees you from the decisions made by employers and sets up multiple streams of income that are semi-independent from the economy. You are much better prepared to maintain growth and wealth far into the future.
Developing independent wealth is not easy otherwise everyone would be doing it. It takes a decade or more of concentrated effort in order to build something that most men dream about. You must work harder, think better and have more motivation than the average person. That simply isn’t easy to do in a world of distraction and confusion. People have a difficult time focusing on one thing for so many years. They get lost in competing ideologies and easy credit.
The first transformation that has to happen is within your mind. You have to start thinking in terms of return on investments, reduce expenses, limits on the use of credit, business and investment. The way you think amount of money has to completely change. Each time you get a dollar you can’t think “Where can I spend it?” it must be “Where can I invest it?” Money should be thought of in terms of its ability to generate even more income.
Concepts for Independent Wealth:
1.) Use Your Job for Growth: Don’t assume that your job is the end of your money making. You should use the income generated from your job to put away in savings and invest in business. It takes many years to get enough money to make larger business investments and this will require putting money away in interest bearing accounts until you have enough to start or invest in your own business.
2.) Learn about Investing: It is difficult to become independently wealthy if you don’t think about investing, business and places to return a profit on your money. You don’t simply wake up some morning and think that you are going to invest your money. You have to continually educate yourself by reading journals, online articles and researching topics. After reading these sources of investing knowledge for some time the mechanics of making money will click within your head.
3.) Multiple Streams of Income: Many wealthy people have invested in different kinds of businesses. Some of them have even started these businesses so that they work independently of each other. In such a case a decline in one sector of the economy won’t force your entire empire into insolvency. The more and varied streams of income you have the more likely you are going to keep making money into the future.
4.) Convert it to Assets: People believe that their home is an asset. It is so long as you don’t keep using it like a revolving credit card where you take second mortgages, unload your principle and keep bouncing around. Homes, land, businesses, antique cars, coins, shares of stocks, etc. are considered assets. Take any substantial amount of money you have earned and convert it into long-term and stable assets that still have a return on investment.