No one becomes rich overnight; learn how to fuel your motivation
The path to building wealth is long and trying; it’s easy to become demotivated when you hit a hurdle. For instance, the price of the stock you invested in might take a dip. You need to remain committed and motivated during hard times.
One way to keep your motivation is to create a list of “wants” and “don’t wants” for reference. It can contain things like “I want to be free of my debts within three years.” And “I do not want to end up like my parents.” This list will keep you motivated in the face of adversity.
Spending money on yourself before settling your bills is another way to stay motivated. It may seem counterintuitive, but you will know precisely how much money you need each month to meet your goals.
⚡️Working hard for a paycheck and spending the most of it out of greed is the wrong kind of motivation.
Don’t see this as an opportunity to max out your credit card and plunge yourself into debt up to your eyeballs. Paying yourself first will create extra pressure, which drives you to look for creative ways to make more money. This will also help you develop financial discipline, a quality familiar to all financially successful people.
Now, let’s discuss what an asset is and how it will help you earn more. An asset makes more money for you. Liability gets you no profits but costs you money. Your house is not an asset; it costs you high property taxes and a lifelong mortgage without generating income.
Remember these tips to maximize your wealth:
- The fundamentally applied knowledge that differentiates the rich from the poor and middle class is that they buy assets.
- While an asset generates more money for you, a liability is something you pay for.
- Examples of assets are bonds, mutual funds, businesses, stocks, and anything else, generating income that is appreciated over time and can be readily sold.
- Investing in assets makes your money work for you by passively generating income.
- Assets generate more money for you: as your assets cover your expenses, you take the money and reinvest it into new assets, thus generating a compound growth effect.
Unfortunately, most people categorize liabilities as assets. Many fancy buying a house, thinking it is an asset, while it is one of the most money-consuming liabilities you can get. With houses come high property taxes and a lifelong mortgage, and they don’t generate income.