Archive for May, 2011

The one step you must take to be rich.

May 17, 2011

The most difficult part about getting wealthy is taking the first step. People find a million reasons to avoid taking the first step. The very step is the most crucial one and once taken the rest of the steps just follow one after the other as if by magic. The momentum starts to gather strength like a snowball which starts off as a little snowflake and as it rolls downhill it picks up more flakes and starts to grow bigger and bigger and as it gets bigger it gathers more and more flakes until it becomes really huge. It is said that the journey of a thousand miles starts with the first step.

Now that you are ready to take the first step, you would naturally want to know how to take that first step. At this stage we want to keep things simple. So the first thing to do is to open a little savings account at a financial institution. Nothing fancy. Then make a small deposit to get you going. Then deposit any amount you can spare from time to time. This act while it may appear to be simple is an important catalyst to making greater savings in the future. Once you have a reasonable balance, then its time to raise the bar. Now decide that the time is right to save 10% of your gross monthly income and continue this process for six months or a year if you wish.

A situation could arise where it is difficult to save 5% leave alone 10% or the opposite scenario where a saving of more than 10% is possible. Such special situations  will be dealt with later.


How do the rich get rich?

May 8, 2011

Our lives are programmed from an early age to get an education, get a good job and earn a good income.What happens in the process is that we make our employer rich,we pay taxes to the state and we make the banks rich.We have very little left for ourselves.

The rich however do things differently.They start accumulating assets which will generate an income so that they don’t have to rely on a job for a living.This does not mean they don’t work. The difference is that they are not slaves to their jobs or profession!

But how can I do that if I don’t have any money ? It’s quite simple really if you know how. Read the next post for answers.