Humans have an innate desire to be independent at a certain stage in life. This desire drives us to all lengths to do all kind of things.
Indeed, money is very essential to life as the Bible rightly states in Ecclesiastes 10:19b: “Money answers all things.” It is good to have money and be able to provide and cater for one’s needs without depending on anyone. Creating and accumulating wealth can however, be very challenging and frustrating as it requires a great deal of patience, persistence and hard work.
In the book, The Richest Man in Babylon, it is said that “attaining financial independence is just like a tree that grows from a tiny seed. The earlier you plant the seed, the earlier the plant grows, and the more faithfully you nurture and water the plant with consistency, the sooner you will bask with contentment beneath its shade.” It stands to reason that the earlier one tries to attain financial freedom, the better. The following are tips that one could adopt:
- Be Disciplined and Determined
Determination is one of the keys to success. Before you set out for any task, you have to make up your mind to work towards the end or goal. Taking up the challenge to create wealth is not easy and requires the conscious effort of discipline and determination. It is required of you to be disciplined in spending. Thus, there is the need for one to have a personal budget to take note of all revenues and expenditure to help track where your money goes. This can be realised only if you are patient to see your money grow.
- Build Up a Saving Culture
You can only save if you spend less than you earn. It has become very common in recent times for people to buy things to assume a certain class, impress, and feel accepted in society. You need to be disciplined to say ‘NO’ to most of these false social media offers and spend wisely. Deny yourself of some luxury in order to save. Do not wait to start earning a fat income before you start saving. Saving is a habit; if you cannot save out of the little you have, you cannot save when you have more. It is best to cultivate the habit of buying in bulk to avoid impulse buying.
- Multiply your savings by Investing
Once you are able to save to an appreciable amount, you should immediately open an investment account and let your money start working for you. When investing, you need to bear in mind that you want to preserve your principal while growing it by earning interest on the principal. You need to know that a small return on a safe investment is more desirable than one with a higher risk.
You need to put each coin to laboring; this will produce its kind and grow over time into a stream of wealth which flows constantly. Where you have little or no knowledge about investment, seek professional advice no matter the amount of money involved and know what you are investing in.
- Develop leisure that does not require money spending
Minimise spending as much as possible. Reduce hobbies that revolve around spending and identify things you enjoy that do not involve spending money.
- Build extra sources of income
Earning income outside your job is another great way to gain more. Turn your passion into income by being innovative. What problem is there in your community that you are passionate to help solve? Start something that does not require so much capital and involve less time. For instance, start a blog. You can make use of social media to advertise your products and to help you sell. Do not be in a hurry to make big profits, you can consider freelance in your spare time.
- Make your spouse your partner
This is often taken for granted. Your spouse should know and understand what you hope to achieve. Your partner, just like yourself, should stay disciplined and be investment-oriented to better help you attain your goal.
You would not want to be gathering while your spouse is scattering hence, the need for a partner who agrees with you. The Bible even confirms that with a question in Amos 3:3, “Can two walk together except they agree?”
It takes time to see your hard work yield results, but it will eventually happen. If you already are doing any of these and it does not seem to be working, change your approach, but do not quit.
By Wendy Nyavor (Investment Analyst)