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I recently found myself at a social event - I know, me, Mr unsociable! Anyway, I was chatting with a chap who is very passionate about his successful career. I suspect he does not know what I do and as I am the worst networker, I did not tell him.
The interesting point is that he asked how we fared through the pandemic and I replied politely and modestly that we fared better than most and I reciprocated the question knowing he runs his own business.
He said that he had only just about qualified for a bounce back loan which he was very pleased with himself to have secured, and then went on to explain that this gave him enough money to renovate his bathrooms, all three of them!
Clearly, this was an opportunity to access a large amount of money, and some might think "that was a cool move - smart guy", but on the other side some might think "the world is about to end, we don’t know how we are going to be affected financially, and will we be able to put food on the table - is he nuts?!"
You can probably guess where I sit with this but the point I want to make is that in order to escape the financial chains and oppression you need to plan and build your escape, adding to your oppression by borrowing money to get a short-term high is the road to failure…
We are happy to talk with people who at least want financial freedom even if they have not got all the tools at this time to succeed.
In order to become rich, you must start somewhere, ‘at the beginning’.
If you do not what to be a slave to the system, then you need to plan to buy your freedom so that you are no longer a slave.
The first thing you must do is ‘pay yourself’ and that needs to be around 10% of your income, what 10%? Yes, at least!
You must then live on the remainder, and you will surprise yourself because I bet you will not actually feel any real difference once you adjust.
As you progress through time your wallet will start to fill, but do not be tempted to spend what has been accumulated, if you do, then you will always be a slave and will fail.
Keep one eye on your heart’s desires of what your future will look like and the other eye on how to make this money start to work for you.
If you invest well your money will produce more money and this money will also in turn be working for you and your family's future. So, through the benefit of compounding returns your money accumulates faster.
So, now you know, there is no great secret, you simply need to spend less than you earn and invest wisely!
Remember, from small acorns do big oak trees grow.
Steven is a Fellow of the Personal Finance Society, whom is passionate about investing and getting the most from your money.
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The guidance and or advice contained within this website is subject to the UK regulatory regime
and is therefore primarily targeted to customers in the UK.
The FCA does not regulate taxation advice. The value of your investments may fall as well as rise.
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