Here's Why You Are Not Rich!
My very first post here on Steemit sharing the only 2 things you can do to become Financially Rich.
Now I know that most, after watching this video will say: yeah duh-uh, of course.
Well if it is such a logical and well known principle, how come you ain't doing it?
So the two steps are simple:
- Create a Surplus
- Invest that Surplus
Most people that I know who don't follow this principle tend to point out they simply do not earn enough to create a surplus big enough to invest. Hello? Well here we are on Steemit where you can invest as little as $10 to start making a change!
However, the biggest issue I notice is, as someone posted on my YouTube video recently:
"If I had a Billion Dollars I would give you 100 million"
No you wouldn't because that would mean that with your, let's say $10.000 right now you would give me $1000. And then all of a sudden it's a different story. It doesn't matter how much you earn, there is always a way to save a little on the side. Yet don't let that little bit or large chunk of money sit in your bank account collecting dust. With interest rates as low as 0.05% here in The Netherlands, that's right! not 5.00 % 0.05 % !!!! you will lose al your money on taxes and inflation.
So figure out where it's going wrong with you, are you not creating a big enough surplus to make a difference in your financial life? Or are you not investing that surplus?
Btw, even someone who got rich from the lottery got rich using exactly these 2 steps, it is applicable to every situation.
1: Harold works at 7 eleven and earns $1400 a month of which he has $150 left at the end of the month. (surplus)
2: Harold decides to buy a lottery ticket for $5 of the $150. (Investing, yes maybe a stupid investment, but hey).
Harold became financially rich due to dividends of his investment.
Here's a written version of the video:
So there's only 2 things you can do in order to become financially rich. Only two things. And those two things are: One, create a surplus. Two, invest that surplus. So if you're not rich right now it means that you're not doing either one of them or neither of them. Now it's very easy: what is a surplus? Let's say you earn $2000 a month, you spend $1500 you have $500 left. That is your surplus. Now most people have a surplus, but they spend it on stuff. So either they save it and then use it to go on holiday or buy a car, or they just spend it on buying new clothes or going out for dinner. That's fine, you'll just never be rich. So: Take the surplus and then invest it. That's the second step. So now go figure where is it going wrong with you? Are you having a big enough surplus? Yes or No? Are you investing that surplus? Or maybe you don't have a surplus and you're not even investing whatever little bit you do have left. And that's why you're not rich...
This is hilarious...you're throwing money away into bid bots, actively losing money, and telling people how to make money... You're dumber than a really stupid robot.
Beautiful .. well done
Yes the personality was wonderful can say it was balanced
Thanks for sharing
Great first article!
Some topics always seem incomprehensible complicated and finance definitely belongs to this topics. But in most cases the principles behind it are totally basic and easy and everyone is able to unterstand it!
If we adapt out behavior to it is everyone's own choice, but we all have the possibility! :)
Thanks for your simple explanation!
Thanks for getting exactly what I meant with this post! :)
Love posts that get people thinking - this one does. Well done and welcome to Steemit. I wish you great success. Yvonne
Thanks Yvonne! :)
@yvonneyoung :) follow & upvote :)
Lovely day!
FollowBack every day 100%
Simple presentation but powerful message . Thanks a lot man. Done a great job . Good luck in steemit.
Thanks! :) glad to hear you like it! :)
nice advise~
Thanks! :)
i agree with that so much:)
I think that calculating 2000-1500= surplus 500 is a bit to optimistic for the real life situations of many people, but I would say that is must be possible to set apart in between 10 -100 for most people each month.
The interest rate is so low that it does'nt make sense to put it in a bank savings depot, so you have to DO something with this surplus.
Buying a lottery ticket is the same as praying that Bill Gates will give you 100000 or just throwing your bucks in the toilet and press the flush button.
Lotteries are not an investment.
An investment is someway to put in money and became partial owner of it in a way. Like stocks in a company, or here on Steemit.
I would say that investing your surplus partly each month in steempower is an investment.
And in the long run a good one I hope.
Hey vjbasil,
so I totally agree, yet here is what I mean:
The surplus of $500 is a bit much indeed, yet as explained in the video, I see the surplus as every bit of money left over after necessary costs. So, therefore, clothes, going out for dinner, expensive meals at home, a TV set, but also saving money for a holiday etc in my opinion are all things that people spend money on, yet are not necessary and therefore are paid out of the surplus. If you calculate it like that a 25% surplus is mostly achieved by most people.
However, again, they will usually spend it on new jeans, and getting sushi, and then claim that they get bare necessities, which isn't really the case. Yet this all comes down to how radical you are in creating a surplus :)
But yeah I would say that the investment surplus of someone earning $2000 should be somewhere around the $100 - $150 mark.
Thanks for liking the post and your valid points! :)
Yes right!
I found that I see lots of people who do not earn a lot, just spend it up to the very end. But not wisely: taking taxis, buying at the more expensive supermarket ( and never checking the receipt...)
Indeed if you live wisely there is always a way to gather some surplus.
Yay! :) I will do a video about how to create a surplus soon! :)
The lottery is gambling for people who are not good at math. That's a very apt saying and is very true. Every once in a while when the lottery gets really huge, I'll buy a single ticket for the fun of it. That's it though.
I do not recommend people leave any more money in a bank than they need to pay their monthly bills. The bank will use your money to loan other people money at very high interest rates. You will not get much for doing them that favor either. It just isn't worth it.
Living below your means is the primary thing everyone should focus on from the retiree to the college student. Walk to school and skip the car. Don't eat out all the time and cook your own food. Rent a room in a place with other people, and don't rent your own separate place.
Most people live way beyond their means, and then they are always broke. It really is simple, but few people do it. Usually, people spend as much, if not more, than what they make. That's a disaster. Don't be that person. Then take the extra amount and split it up into many different baskets to hedge against losses.
Never put all your money into one or even a couple baskets. Spread it out to 10 or more. There are lots of ways to spread it out these days too from precious metals, different cryptos, online peer to peer lending, paying bot services like smartsteem, etc.
Yes: I always say to people who think they make a chance of winning at a ( huge ) lotterie: If I had the same chance of getting a terminal desease as winning in this lotterie I would live forever....
Spending beyond your means is only interesting if you are able to get a few million from the bank and lie all the time to them that you will pay them back and they believe you.....
Indeed spreading your risk is a safe way.
You are on the right track @markdeheide .My take on making a sound financial decision that pays you indefinitely is to invest like you said your surplus into projects that ensures your future is secured. The following I consider to be good Investments are steempower, consumer goods and real estate.
Yep, for me it's real estate and indeed if you want a bit more risky, something like steempower :)
You definitely brought it to the point. Additionally, it is not hard nowadays to get into investment. You won't need to pay $1000s for a barely sufficient diversified portfolio or even more to get into real estate investments. It is as simple as creating an ETF investment plan at your favorite broker starting at around $50 per month. Then you can keep it running, gradually creating passive income through distributed dividends.
#financialfreedom #independence #ETF #finance #investment