Some people spend more than what they make, pretend that they are rich.
Some people spend what they make, also pretend that they are rich.
Some people spend less than what they make, they are the rich one.
If you pay close attention to today’s economy, it’s not stable, certain industries are doing better than others are and many jobs are moving overseas. Seeing what’s on the news, sometimes it’s a bit depressing, big companies laying off employees, closed down plants, and buy out, following by lay off. Every year, you’ll hear different economist, financial analysis and any other type of specialist that you can think, have argued about today’s economy. They’ll project of what will happen in the near future and which direction our economy is heading. Sometimes I think it’s useless to follow this news so closely and it would only stress you out. The easiest way to see how the economy is doing is to look closer, look at yourself for instance, if you are in good financial standing, then you would say the economy is good and it’s getting better.
More and more people are filing for bankruptcy, especially those that purchased their home or refinanced several years back when the interest rate was at its lowest. The mistake that some people made back then was to lock in at fluctuating interest rate because it was a bit lower than fixed interest rate at the time, but little did they know that it does fluctuate up and up only and now the rate is high and I don’t anticipate for it to go down anytime soon. Things might seem so bad, especially for those that have to file for bankruptcy, but the twist to this is that there are other professions that benefit from this unfortunate group. You can probably guess that they are the Accountant and Attorney. The book has to be examined and creditors would be suing, trying to get their shares of what’s left. These two services will always be needed in a bankruptcy situation, great for those that are in these two professions. Therefore, how bad the economy depends on who is looking at it and from which perspective.
This article is from Kwanruen Magazine, Author Genetana Bounboungganh, written in Thai language, ‘The Secrete of How to Become Rich’ is a very interesting article. I think we all have different angle or perspective of how we view situation in life. To me, I don’t think it’s the secrete, it’s more of a discipline and how we view ourselves. You might have heard this before that everyone standard of richness is different, to some having $2,000 might consider rich but to others having $200,000 is not enough. If you are interesting about the secrete of how to become rich, then read on, you might be able to get something out from this article.
‘Money is not something that you use to show off, money is not something that you use to create excitement, money is not something that you use to impress someone, but money is something that you use when you need it.’
There are a group of people that will not be affected by today’s economy, whether it’s up or down, whether the borrowing interest rate is increased, but they will be hurt just a bit if the interest paid on their saving accounts decreased. These are the ‘real’ rich people; they might not have millions or billions of dollars, but one thing that they have is that they have more money coming in than going out.
Let us look at several scenarios on how you would spend your money. If you think that Tom Yum Goung in a small restaurant that cost you $3.50 per bowl is as delicious as the one in a fancy restaurant that might cost you $9.50, and you have $200 in your pocket and have $200,000 in your bank account, you are considered rich because you are happy with the simplicity of your life.
On the other hand, if you have to eat Tom Yum Goung that cost $9.50, and you have $20 in your pocket and have $2,000 in your bank account, you are not considered rich because you use your money too freely. If you know how to save more and spend less, your future will be a lot brighter and you will have financial stability.
Worst scenario, if you have $20 in your pocket, you have to eat Tom Yum Goung that cost $9.50, and you have zero money in your bank account, and still have to pay rent or make payments for your house or car. I can tell you right now that you will never get rich. You can fake to be rich because you live in a nice house and drive a nice car; you are living above your means. It must be very stressful, you can work all your life and probably won’t pay off your debt.
Rich people might look very ordinary like you and I, eat like ordinary people, but what is not so ordinary about them is that they have investment money that most of us don’t have. Rich people don’t like to brag that they are rich, but if you’ve ever engaged in conversation with one, you will notice that they have their own little secrete of how they acquire their wealth, most if not all have similar techniques. I’m not talking about the inheriting rich where they are already ahead in the game, but I’m talking about those that start out with nothing.
To some, what’s listed below might be considered the secrete of how to become rich, (but to me it’s more of a discipline but that’s from my personal point of view.)
Expenses should be less than income – most people don’t need a lot of money to function in today society. You can start by saving, whether it’s putting back $$$ per months. Some people say that they are happy to see the dollars increase in their bank account, from hundreds to thousands and so forth, $$Ka$Ching$$.
Invest wisely – people don’t get rich from gambling except if you are the owner of the casino and gambling is not the same as investing which most gamblers have a misconception. You can loose everything that you have if you are a gambler, you should think about quitting. Invest wisely is to invest your money in stocks that are reliable, or something less risky but also less returns such as CD, money markets account, and retirement accounts such as IRA, or 401K.
Get out from debts – If you have any credit card debts, you need to pay off as fast as possible, this is the type of debt that you don’t want to be in. You should stop using all credit cards because you will be spending more than what you have and might spend on things that you don’t really need. However, if it’s debt that is on a mortgage for your home or a building for a business, think wisely and make sure that it’s something that you can handle. This type of debt is considered a good kind because it’s a long-term investment and most property appreciate in value. However, if you are in huge debt by opening a business and business are going bad, not a good thing at all. What we have to remember and keep repeating to ourselves is ‘Don’t get into debt’; this is the magic word for those that want to become rich. Let us assume that you work for a bank, if you don’t have to don’t borrow money, let others borrow money. You know that those that borrow have to pay interest, the first couple of years are pure interest (very little percentage goes toward principle), and these interest paid by borrower are your salary.
Open up your own business – believe me if you work for someone you will only get your weekly/monthly paycheck. Who make all the profits, the owner of the company that you are working? Whatever position you have in a company or your annual salary, when you die, you can’t inherit your position or salary to your family. The owner of a business on the other hand can inherit their business to their family after they passed away. The real rich people that I know are mostly business owner. There is a saying but I don’t know if there’s any truth to it, you decide for yourself, ‘People that have their own business are 4x more likely to become rich than those that work for someone else.’ Think about it, what do you like to do? What knowledge do you have? take that and find a way to open a small business, increase income to yourself by starting a small business today.
This is a true story that I like for you to think and ask yourself if this person is truly rich.
A female professor at a local university was out shopping at a supermarket buying miscellaneous items. She was approached by a middle age person (same age), who looks very average and she all of sudden remember that this person is her friend from college. This person went on and said ‘I’m so happy to see professor; I want to ask you for some advice in regard to my son that is currently studying in the US. He is so smart, a straight A student, right now, he has a part time job giving piano lessons making $80 per hours, working 4 hours per day. My husband is working at a huge company making lots of money, and we only use a very small portion of it monthly. I’m actually waiting for him right now; he’s working not too far from here. I don’t have to buy anything, he does all the shopping, and cooking, I don’t have to work or do much at home. We have so much money, my son wants to go to medical school, but you know how it is, it’s so expensive, but he is extremely bright, and makes tons of money….’
According to the above scenario, she is so lucky to have everything. The professor didn’t have a chance to ask much, all she said was ‘yes, uh hah…’ but she did have a chance to examine the appearance of her friend. Everything about her is so average, such as her cloths, shoes, purse, watch, and hairstyle and her overall appearance. What is not ordinary is her wealth and how lucky she is to have a perfect life.
After getting in the car, the professor has time to reflect on their conversation, ‘Is her friend really rich like she said she is? Is she happy with her life or is she miserable? Does she have a happy family life or miserable with her son and husband? Does she need advice or need someone to praise her?
Can you answer any of these questions? When you engage in a conversation with someone, can you tell if that person is as rich as he/she claimed? Did you ever think that maybe some people might daydream in the form of words and conversations? What about you, are you rich for real or just faking it?