While it’s true that money can’t buy happiness, it’s nevertheless still incredibly important. Firstly, without financial independence your self-esteem can take a hit – after all, there’s nothing glamorous about feeling like a burden to those who support you.
Secondly, you’re without a meaningful way of helping those you care about – to put things bluntly, hungry people don’t need prayers or sympathy – they need food. In our modern world, this is perhaps the true value of money – it’s a necessary means to help us to take care of ourselves and those around us. Without it, or with very little of it, life can feel like a continuous struggle.
Some of the most important things about money aren’t always obvious – how to get it, how to retain it and how to wisely invest it are all complex ideas. If they were simple, everyone would be able to attain vast riches. Perhaps the importance of money lies in being able to spot an opportunity – and with these tips, you should begin to start forming ideas on how to become a success:
1. Forget about a salary
A salary will pay the bills, but when it comes to generating wealth? Forget it. It’s a means to an end, but you shouldn’t stick with a salaried position for the rest of your life. The problem isn't so much related to the money you earn, but the time you spend. An 8-hour workday eats up virtually all of your productive time you could've spent on growth rather than on keeping your salaried position.
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2. Create first, invest later
One of the biggest mistakes people make is to invest everything they have in ideas or schemes which have a low chance of success. Investment is for preserving your wealth, not creating it. You must make your money first before you invest.
3. Try to come up with at least 10 original ideas per day
Some of the world’s most successful entrepreneurs live by this mantra. One of the most important things about money is that non-linear thinking is crucial to generating wealth. This step might not seem like personal finance advice – but trust us, it is.
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4. Be cautious with your earnings
The importance of money is to look after the pennies – afterwards, the pounds will look after themselves. Never invest more than 5% or your wealth in an idea.
5. Enter an industry where you can have a monopoly
Why create a business fraught with competition, when you could enjoy high profits and unfettered access to an unspoiled market? An original idea, no matter how niche, is worth 10 times more than entering a crowded market.
Next up: 7 Steps to Reach your Financial Goals
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