Do you want to become financially stable?

It’s a human nature that he wants to live a happy and content life. He wants a life full of love and joy, life that is free from tension and burden. But that’s not reality. Man can never achieve this ideal life but obviously he can come closer to an ideal life and for that money is necessary after love and peace of mind. I give priority to love and peace of mind on money, you know why? Because you can buy anything from money but you cannot buy love and peace of mind, but obviously I am not rejecting the importance of money in achieving a happy and content life.

We see in our society that people earn substantial amount of money and work hard all the day but they are not happy. They don’t give time to their family and even some time don’t take care of themselves and busy in making money. As a result they found themselves depress and unhappy.

As I mentioned above that they earn substantial amount of money but they are not happy. Do you know why? One of the main reasons is mishandling the money they earn, due to which they are always busy in making money and lose their family love and peace of mind.

So, how to overcome this problem. Here I list down some important point that I have learned from ROBERT KIYOSAKI book “Rich Dad Poor Dad”. These points will definitely lead you toward financial Independence and at the end happy and content life.

1- INCREASE YOUR FINANCIAL INTELLIGENCE:

People usually in their life gain technical knowledge about their field but don’t give importance to the knowledge which helps them to handle the money that they earn from their technical skills. So, the most important point is to gain financial knowledge and increase your financial intelligence. This can be done by either reading books like written by successful business mans or by attending seminars and workshops. Once you have financial knowledge, you know how to handle money in a proper way.

2- ONLY SAVING CAN NOT MAKE YOU RICH:

One of the most common dilemmas of our society is that; if you save you can become rich. That’s not true, saving infact devalue your money and cannot help you in achieving financial independence. So, what to do, either we should not save money? No! I am not saying that, rather than saving only, we should adopt the policy of save and invest. You should save money but as you get right chance of investment, just do it. The money which you save cannot make money for you, but the money you invest will make money for you.

3- DO NOT WORK HARD FOR MONEY BUT MAKE MONEY TO WORK HARD FOR YOU:

Money is like an employee, if you invest it anywhere like stoke market or real state. Money will do work for you. Its mean that the money you invest after sometime generates profit and that will increase the value of money you invest. For example; if you invest $10,000 on an annual profit of 5%, than after one year your $10,000 produce $500 and now you have total $10,500. So, in the above example, money is working for you.

4- UNDERSTAND THE DIFFERENCE BETWEEN ASSETS AND LIABILITIES:

If I try to explain in simple words then; assets is anything which generate money for you and liability is anything that takes money from you. For example, you buy a heavy bike worth $10,000, for just to fulfill your desire of new bike, obviously you need a great amount of fuel to run that bike and now this bike is taking money from you time to time in a form of fuel and maintenance and after every running miles, its value is also getting low. So, this bike is liability. On the other hand, if you invest this $10,000 for an annual profit of 5%, then at the end of the year the money you invest generate $500 more and now you have total $10,500. So, it’s an asset because it generates money for you.

5- NO RISK, NO GAIN:

Risk does not mean that you should invest blindly, but before investing your money make sure that where you are investing is reliable and trustworthy source or not and once you find it trustworthy, just invest it and if not than obviously don’t invest their and wait for another opportunity.

6- INVEST THAT AMOUNT OF MONEY, WHICH YOU CAN BEAR AS A LOSS:

Some people are really crazy, when they find someone trustworthy and reliable. They invest their all saving into that business. That’s not s right way to invest. There is always a chance of losing money instead of profit. So, only invest that amount of money which you can bear as a loss.

7- DON’T PUT YOUR ALL EGG IN ONE BASKET:

Do not invest your all saving in one source of income. Rather than that, invest small fraction of money in many sources of income. For example; if you have $10,000 than instead of investing all in one source of income, you should invest $2,000 in five sources of income. The reason behind this is obvious that if you invest all your $10,000 in one source, may that source give loss to you instead of profit.

8- DON’T TAKE ADVICE FROM PEOPLE WHO ARE NOT PROFESSIONALS:

The biggest mistake which people usually make is that, they take advice from people who have no interest and knowledge about that investment. So always take advice from people who have knowledge about that business in which you are interested to invest.

CONCLUSION:

In a nut shell, I would like to say that most of our financial problems can be solve if we handle our money in a proper way. Some key points from this blog which everyone should remember are:

Ø  Gain financial knowledge and increase your financial intelligence

Ø  Realize the difference between assets and liabilities

Ø  Adopt the policy of Save and Invest

At the end I would like to say that, life is beautiful and precious, the intention of this blog is not to stop you from following your dream but to teach you that how to handle your money in a proper way so that you can live your whole life with happiness and joy.