Money In Your Bank Account: The Road To Riches Part 2

Saving Money Could Not Be Smarter

Living paycheck to paycheck is an extremely difficult way to live. Unfortunately it is a reality for many people.  Being between jobs is a common occurrence for many due to our economic situation we have at hand and many people struggle to even find a minimum wage jobs in some cases. The smartest move to be made is saving money.

Life has a way of throwing heavy challenges in our directions at very inconvenient times. It could be that someone is sitting pretty with a salary of $550,000 a month just to be HOMELESS the next month because their company went under. This type of emergency will happen at some point in your life. Savings will be what come to your rescue if you have them.

Learn to spot Opportunities

This is a fact even though it does sound a bit harsh: opportunities come more to people who have money. This is not referring to rich people but to people who have money in the bank to spend on an investment. Opportunities are around us all the time but they do not come in the form of free. They usually require that you put in some form of work or money.

If a man walked up to you right now and asked you to risk $10,000 in order to make millions with a product that had a 90% chance of success, would you be able to do it? What if you had $50,000 in a savings account? Would you do it then? By having money in savings, we are preparing ourselves for anything the MAY go wrong in the future. More importantly it allows us to explore opportunities that many people will never even have the ability to spot, even if it is right in front of them.

Get An Account With Compound Interest

The terms get a little bit “dictionary like” in this section but stick with me, I PROMISE it is important. There are accounts that you can invest your money in that offer compound interest rates. (There are many types of investments but that is for another day.) A compound interest rate takes a percentage of your total amount invested and adds the money back to your account at the end of a pay period.

An example may help you understand a little more clearly. If there is an account where there is an Annual Percentage Rate of 5% and there is $500 in the account. The 5% would be applied to the $500 at the end of the year which comes out to be $25. The amount in the account would now be $525. In one year with no work, this money earned $25. It is like it came out of nowhere and the best part is that during the next year, 5% of $525 will be added to the account.

Learn The Future Value of YOUR Money

Now that you know your money can sit in an account and MAKE YOU MONEY, a new door has been opened. Now you can calculate how much the amount of money you have now will be worth in the future. (You can Google “Future Value of Money” if you want to find out more) If you save your money in smart accounts, it will continue to grow like a tree. If you spend your money today, it will be gone forever and those dollars that would have been worth more in the future are like a tree that gets cut down before it was fully grown.

Remember That There is No Shortcut To Becoming Rich

Being rich is not the same as being rich and knowing how to sustain your wealth from your diverse set of experiences. People who become rich quick often become poor again just as fast. On your quest to becoming wealthy, you must encounter certain hardships that humble you and make you appreciate your success. If that appreciation and humbleness is not there, money can be spent  too quickly.

Professional football players get rich because of their skill and often go bankrupt when their skill fails to meet the expectations of the people at the top. Many of them never learn how to manage the overwhelming amount of money in their possession . Warren Sapp played for the Oakland Raiders and averaged $100,000 per month. In 2010 he filed Chapter 7 Bankruptcy! He earned the money so fast that he did not know how to keep it. Keep in mind that this can happen to ANYBODY no matter how the money is earned.

With Time Comes Results: Dividends are Right Around the Corner

Saving money is hard at first and learning about savings accounts and investments can be pretty dull. It can be very hard at first to break some bad habits of spending money such as cutting out impulse purchases. Breaking bad habits is literally an internal struggle. During this time of struggle you build CHARACTER and WISDOM. Keep putting in the hard work and results will come.

You Are the Keeper of Your Destiny

At the end of the day, we are truly the only one who cares about our own financial situation. People may feel sorry for those who do not have enough money but it is uncommon for someone to reach into their pockets to support another person. By cultivating the right money habits TODAY, you will have money for when you need it in the future. How amazing would it be to be COMFORTABLE when we are old and tired because we do not have to worry about financial stress? That day will come some day, you decide how it will turn out TODAY.

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One thought on “Money In Your Bank Account: The Road To Riches Part 2

  1. Pingback: Money In Your Bank Account: The Road To Riches Part 1 | Young Life Perception

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