For most of us, the central and the fundamental quest of life is how to become rich and wealthy.
Well, it is a fact that the foundation of prosperity and happiness is built with bricks of money.
Being Wealthy is the route to happiness and success.
The amount of your bank balance determines the standard of life you would be living in the future.
And I believe you would also agree and acknowledge these facts of life.
In addition to this, you have a set of responsibilities to fulfill (such as your children education) and of course your personal dreams and aspirations.
Invariably each of them would require the vital factor “M” – Money.
So the most significant question is how you would ensure that you become rich and wealthy for sure.
While some may take the road of earning more in order to become rich and wealthy, there’s one more way of achieving your cherished dreams of becoming rich and wealthy.
And that approach emphasizes and puts the idea – It’s Not about Earning More; it’s About Saving and Investing More. In other words, you can earn more by saving more.
Thus according to this approach, it is not necessary that you have to earn more in order to accumulate wealth; instead you just require increasing your savings and investments so as to fulfill your dreams, aspirations, and responsibilities, and become competent enough to lead a happy and prosperous life.
Let us make it clear to you.
In fact, there is no point in increasing your earnings when you are still not able to save any penny.
You basically work to make your present as well as your future safe, secure by becoming financially rich and stable.
This action plan will not materialize unless you save and invest more.
By increasing your earning by $100 per month and increasing your expenditure in the same proportion, you would not be improving your financial health.
Actually this results in a very funny situation.
You put in your efforts, devote more time to your work, upgrade your skills, become more productive, and start earning more to find eventually that you are not saving any extra dollar. On the contrary, you might have even increased your overall expenditure.
So, is this the right approach of becoming rich and wealthy?
Well, quite certainly, the answer is an emphatic, “No”.
On the contrary, apply and practice the approach of saving and investing more and see the rewards of it. Although you can increase your earnings yet it is never going to be easy. So, if you devote your time and energy on saving money things will look brighter to you.
Let’s take up an example.
Suppose you are spending $50 as Fun Money each week, consider revising this figure and make efforts to reduce this expense by half. This would result in a saving of $25 per week that would amount to $1300 if you continue saving right through-out the year.
And when you supplement your saving efforts with investment, it could turn out to be like “cherry on the cake” for you. By just investing $25 per week in a mutual fund, which gives after-tax annual return of 10 percent for 5 years, you can finally get $8400 at the end of the period. This is really a good amount of money when you consider the fact that you just saved $25 per week. So the rewards of saving and investing (intelligently) are vast.
Let’s give you another example which would clearly show you that it’s not about earning more, it’s all about saving and investing more that can make you rich and wealthy.
By saving $100 per month and investing it in an investment option (like a mutual fund) which gives an after-tax return of 10% (compounded annually) for a period of 30 years can give you over $200,000.
So just see the rewards of saving and investing.
They are truly immense in monetary terms.
All boils down to the fact that it doesn’t actually matter how much you earn, finally it depends upon how much you save and invest. Thus, it would be an intelligent and fruitful decision to begin saving and investing more if you want to become financially stable, rich, secure and wealthy.
