The Rule to Growing Wealthy
Have you ever wondered why sometimes it seems like your paycheck and your back account don’t have a positive correlation? Even though your income increases, your bank account is flat or even decreasing. This could be due to the fact that many people don’t listen to one of the most important rules of wealth growth. DO NOT let your expenses grow proportionately to your income. All too many increase their expenses the second they have an increase in income.
For instance; when given a big raise, many upgrade their car, their wardrobe, throw a celebration (all shots on them). Before they know it they are back to the same level of available cash as they had before the raise. If you start renting a more expensive place for example it will eat up your free cash – free cash is the money that you do not need to commit to something but rather can use towards potentially good ideas and investments.
Make Money Work for You
If your free cash has not grown, how can you expect to grow your wealth? You need to make money work for you by investing in different projects. If invested properly, money will work harder and longer than any employee possible. When you have free cash available you are more capable of coming up with a business and having the resources to follow through. Not only will your own ideas have the ability to come to life but you become sought after by others – as a possible investor. This can start a multiplier effect for great ideas and investments – people will want to get you involved.
As you start investing in projects and investments your cash flow actually starts to grow – the original cash starts to multiply as the dividends from those projects become more free cash to expand. You should resist the urge to increase new expenses until you have such a plethora of free cash that it will not harm your ability to consider a new investment even with an added expense. Then even so, do not spend frivolously for you never know what sort of opportunity may come along.
Reread this Rule and Abide By It
If you are someone who wants to grow true wealth, I urge you to reread this rule and learn to abide by it – Do not let your expenses grow proportionately with you income – always look for good opportunities to put your free cash to work and soon you will have the wealth you desire.
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