What are the four basic steps to become financially wealthy?
1. Be involved in an activity that generates an income ( That's a no- brainer) or simply inherit a substantial financial asset.
2. Tithe your income: 'I seriously believe in what the Bible commands. Giving 10% of your income is just the right thing to do. I have benefited from it, not only financially. Generosity towards the Kingdom of God improves many aspects of life.Tithing into God's Kingdom has protected my financial assets on many occasions...
3. Never lose your money: This is a tricky one but I'll explain. If you keep your money, eventually, you will be wealthier. It has been proven that any individual who had worked for at least 35 years, in a country with a decent minimum wage, should have earned above a million units of the country's currency.
So why do we have so many pensioners broke and unable to survive? Why do we have individuals who in spite of giving long years of service, can't relay on a decent saving account?
The response to those questions is quite simply shocking:
They lose their money every single day of their lives.
After analyzing several financial trends and behaviors, I came to the conclusion that people lose money in two major ways:
1. They give money to the wrong people and the wrong causes.
2.They invest money in opportunities they fail to scrutinize.
Let's analyse those two 'pockets holes:
A.They give money to the wrong people and the wrong causes:
'Giving is a great thing to do. But whenever you are giving, always make sure that you have an adequate answer to the questions:
a) Who am I giving the money to?
b)Why am I giving this money?
c)Is my money really going to serve its intended purpose?
I encourage people to be generous, but what's the point of giving money to someone who would constantly use that money to get drunk or buy cocaine?
The Bible says: 'Who gives to the poor(person in need), lends to God'( Prov. 19:17 ).
In other words, if you help a poor person, God will give you back something...
If you gave your money to an organisation pretending helping poor children in Africa, you are not giving to the poor, you have been duped. If you gave your money toaguy who pretended to be in despair to help his family, while in truth, he uses the money to buy drugs, you have not helped a poor person. You have been duped. If you gave your money to a minister who pretends preaching the Gospel of Jesus,while that same minister is just a ' money bagger', you have not tithed your money into God's Kingdom , on the contrary, you have financed a 'con preacher' and you should not expect God's promises...
As the money giver, you have the right to scrutinize who you are giving the money to, and what cause will it serve.
B.They invest into opportunities they fail to scrutinize:
Everybody wants to get rich...too quick. That's why most people fall prey to internet scammers. Have you ever receive this little e-mail that sounded too good to be true? That online opportunity that would get you 1000 dollars a day from home?
I am sure you have already seen something like that.
Here is a simple basic advice for all my readers:
'Before investing your money into an opportunity, whether online or offline, make sure that you have a response to the following questions:
a) How does the opportunity work?
b)What are they selling?
c) What are the terms and conditions?
d) Do I understand fully the nature of the business?
e) Have I done a research on the internet regarding this business opportunity?
f) Is there any refund clause?
If a business opportunity, an asset or investment manager, fails to respond to all those questions, DO NOT INVEST YOUR MONEY in them.
In 2008, during the world economic collapse, several families were hit by financial losses caused by irresponsible and greedy investment managers, who still have their jobs. They were not even liable of any loss occurred.This kind of things only happen where the people investing their money, fail to fully understand the nature of their investments. Especially when they want to get rich quicker and faster, they are ready to believe anything presented to them.
I would rather keep my money in a saving account than investing it in a business I fail to understand.
A 'stupid risk' is trying to do things without understanding and thinking.
Invest if you know what you are doing.
4. Save your money:
Pay yourself a portion of your income. Learn to differentiate 'needs and wants' and remember that you are also saving for the future generations( your children).
These are my four basic steps to become financially wealthy.