Wednesday, January 16, 2013
investment first then consumption
We live in a consumption based society. We are known as consumers. How do you like them apples? Well I don't. I propose another way. Work your job, invest your money, and consume with the money that your investments make. Think about how the world would be different if more people did that. There would be less need to "have a job" to survive. People wouldn't be so strapped and stressed about money. And like it or not money is important. Hey I didn't make the rules. I'm just trying to do well in the system that is. Now granted initially most of us will have to work as employees. That's just the way it is. But instead of viewing your earnings as money you can spend look at it as seed money to invest. And invest as much as you can. Every dollar put away represents freedom. Freedom from a job, freedom from debt, freedom to do as you wish. This is the way to build a money tree of which you can eat the fruit. You don't even need a degree or a prestigious job. All you need is an income. And that income will most likely come from working for someone else. That's fine and dandy. The next step is to keep your expenses always below what your job produces. Then you take that surplus and put it to work in appreciating income producing assets. This will be a slow slog through the mud. It might take decades. But the ability to delay gratification is paramount. After many years the income from your investments starts to make a difference. It's sacrificing now to have a better future. This is what I'm trying to do in my own life. It's not easy. I mean come on everywhere we go we're being pressured to spend. A good way to get ahead is to save and invest. It's not exciting, but it works.