The Secret to Wealth

           

Image Credit : morguefile.com

           We face many difficult decisions in our every day lives that not only affect us personally, but our family as well. Each of us has those around us that depend upon our ability to address and overcome problems. The stress and worry can be overwhelming. How do we achieve personal resolution?

            Personal resolution is not simply about accepting life as it is and striving to be happy with it. This is not peace, it is slavery. Enslavement can be within as well as from factors outside. Putting our issues in the trust of faith does nothing to resolve them. It only means accepting them and moving on. However, unresolved issues do not tend to go away. They return each month and add to the new issues until we are overwhelmed both physically and financially.

            We have the capacity to adapt and to overcome to survive and thrive in our environment without irresponsibly ignoring our issues, or placing them upon the alter for our gods to sort out for us. As a result of the latter we have developed poor decision making habits. We predominantly rely upon others for our very existence.

            Acknowledging that we are aware of an ideal existence, realizing the shape and structure of that ideal and comparing that to the barriers between becomes the foundation of self resolution. This seems more difficult than it is as written here on page. So let us example our typical issues.

            It takes money to live. No, it doesn’t. All economic systems rely upon what you don’t know to validate their necessity. If you knew how to make a car you would not have to purchase one. If you knew how to create your own electricity you would not have to pay a power bill. If you knew… well, we see the point. So acquiring and learning the wealth of human knowledge becomes the resolution. Getting more money is not the solution to issues. Nothing is wealthier than free. And those who know how to provide for themselves need not pay others to provide for them. This is a very long article written very efficiently, so feel free to compare the message to your real every day needs.

            Of course, self sustainability does not happen over night. And one must learn how to become self sustaining. One must live on the fringe of society, so to speak to acquire this understanding to break free. By fringe, I mean continue to work the daily grind but instead of wastefully spending, put resources toward projects that save money. Yes, use everything available on this sinking ship to sustain you in the frigid ocean water when the ship does go down. And it is going down. Like, every great society before it in history, our current societies are following the same fate. This is because all societies based upon economic systems fail due to one crucial flaw. Greed leading to excess.

          The most terrifying reality for the wealthy is the same reality that all creatures living on this planet peacefully and happily face everyday… the loss of wealth and providing for one’s self. The popular misconception is that the wealthy provide for themselves, they do not. Without laborers they have no means to produce goods and services. Without labeling a price tag on those goods and services they cannot acquire wealth. In your society you pay for water, fruits and vegetables, earth, and nearly every other naturally renewable occurring resource on this planet. Why?

How to Make One Million Dollars in 20 Years!

Wealthy people do not think of money in the same context that most of us do. They think of every dollar as seeds with the potential to grow. Investment is the key to wealth in any economic system. A single dollar can grow to 1 million in as little as 75 years at 20% interest in the right type of bank account if left untouched.  30 dollars (one dollar a day) can grow to 1 million in 32 years at 20 % if left untouched. If you had invested a dollar a day when you were born you would have 1 billion dollars by the age of 66. So how is this possible? The secret is compound interest.

If you put away 10 dollars a day and placed it in the right mutual fund, stock or real estate and let it sit untouched you would be a millionaire within 20 years. The problem is sustaining a 20% interest rate for 20 years. But it can be done. The more you can afford to put back the faster you can earn your 1 million and the less you have to worry about varying interest rates on your saved earnings. The most important lesson is to change our concept and attitude about money.

Young people today working on even a meager income must retrain themselves to resist the urge to spend on frivolous things. It doesn’t take long to develop the savings/interest bug once you get started. Mutual funds are the best investment tools for long term interest. We really should be teaching our children about them as toddlers and add mutual funds to the core curriculum in elementary school!

We must set realistic financial goals. How much money would you like to accumulate? How many dollars a day can you realistically invest? Have you checked around to find the best interest rate you can get for your savings? When would you like to reach your investment goal? What is your financial purpose? These are perhaps the most important questions we must know before we begin to think about long term investment. We must be sure. Because once we start, we cannot change our minds. Our discipline is that the money we have saved is as gone to us as the money we have spent!

So to have 1 million in 20 years we need to invest $300 monthly at a fixed 20% interest rate. Our lofty financial goal may be to simply live comfortably without a worry. Remember, it takes money to make money and after your 20 years you have it to reinvest.

As mentioned, one of the most vital aspects to savings and investment is to know why you are saving your earnings. This will be your life goal and you must have a plan for emergencies and whatever else may come up. Ideally, once it is invested, it is gone to us for 20 years. That requires discipline.

So why aren’t more of us millionaires if it is this simple. The simple answer is that most of us pack the simple discipline to not spend that money we should be saving. Procrastination is a killer as well. Say you have decided to save $200 a month for 20 years, but wait a year to do so or cannot keep up the pace and spend 12 only 12 months of your earnings in 20 years. You have cost yourself $116,000 dollars. This is about $13 dollars an hour 24 hours a day for 20 years.

As a final note, it is more important to remain consistent than how much you save each month. Once you begin remain consistent. More to come!

Image source:
http://upload.wikimedia.org/wikipedia/commons/f/f0/Money_closeup.jpg