Where do you find the best investment advice? Everyone wants to increase their income, their savings, or their assets… especially if they still worry about their finances. If you look online, there is no shortage of investment experts. Ultimately, the advisor you want to listen to is the one who best understands your situation. But who should that mentor or expert be?
There are so many social media posts advising you to set aside 20 percent of your income for savings. They also say that rich people put the majority of their wealth in investments, assets, and savings, and only a small portion in expenses. However, they aren’t telling you the real investment secret.
When you’re making six figures, you’re able to afford a basic cost of living. In most cases, you can have a decent place to live, food to eat, and money to spare after paying for basic necessities. True, if you’re buying a mansion and a supercar a week, you might be living hand to mouth, but let’s say that you’re wealthy and not living above your means.
For most people, however, setting aside a good chunk of their income for savings or investments is difficult or just not possible. They don’t make enough to pay for housing, food, and a basic living. Or, they do make enough but there isn’t much left to set aside for a rainy day.
When you look at the numbers this way, it makes sense that the rich can afford to set aside a large portion of their wealth to build investments and assets – buy real estate, shares, stocks, etc. It also makes sense that there are people who don’t set aside much money for investments or assets. They spend money on liabilities (items that lose them money and debts) because they are barely surviving.
For those who can’t afford to set aside 20 percent or more of their income for investments and assets, start with building your skills. You can pay for courses or take them for free. You can also learn skills from a mentor.
A lot of education is available online through online courses or YouTube videos, or you can borrow books from the library. When your skills can command you a higher paying salary, you will be in a higher income bracket. When you have that higher income, then you can start following that investment advice that you keep hearing about and grow your wealth even more.
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