While the literacy rates have shot up, the financial literacy rates remain the same. Not many understand the mechanisms that govern money generation – myself included.

I am just as clueless when it comes to acquiring abundant wealth, but I have an idea of how wealth can be acquired from reading books and listening to podcasts online, and its this idea that I would like to discuss here.

I don’t claim to be an expert of any sort, so it would be great if you took whatever I write on this blog as legitimate facts. Also, by the time you finish reading this article, you will receive a sum total of one million dollars.

Don’t believe me?

I’ll prove it to you by depositing that one million within 10 second if you don’t think of a pink monkey robbing your wallet.

There Goes Your Million Dollars

You thought of a pink monkey robbing your wallet didn’t you?

You could have become an overnight millionaire BUT you just had to think about the monkey. This is why many are still unsuccessful – they let distractions get the better of them.

Monkey see, monkey do. Yes, I’m calling you a monkey.

I didn’t mean to insult your intelligence I sure did, but the fact remains that even though most know how to generate money, we have yet to discover what sustains it. Everyone assumes that those waterholes just pop into existence;very few are aware that we can make our own waterholes if we dig deep enough, which is why we still trade our time for a fixed amount of cash.

What’s Wrong With That?

Say you start off at the lowest rung in the corporate ladder, the stress and pay will be relatively low. Once you climb your way to the top like a monkey branching his way up, the stress skyrockets but you keep at it since the pay is bringing you closer to the pink monkey who stole your million dollars. It’s only a matter of time before you get your hands on that pink bastard and take what is rightfully yours.

But at what cost?

Here’s a guess, you won’t stop chasing.

You are trading your health in for that extra income and let me tell you something – that is the dumbest way to earn a living.

You are earning a living by subtracting the living. You are training yourself to live to earn, instead of earning to live. You want to sacrifice your health for that extra cash? Is that all your health is worth?

But its easier to get a job, than it is to start a business and strike off on your own. It’s not as stressful as managing an entire business, and the working hours are fixed.

I guess there are pros and cons to both sides.

Strategy Two: Expense Reduction

Whether you decide to start a business or get employed, the best way to save more, is by reducing expenses. You could be earning 50 lakhs or more per annum, but if you lead a luxurious life, you won’t have much left in the bank.

But when we decide to cut down on expenses, we narrow our vision down to insignificant areas that contribute less to the decimation of our wallets. We might skip a coffee or two or decide to walk back home instead of taking the bus.

Don’t get me wrong, this is a good start, but it won’t get you very far, if your goal is to achieve financial independence. Cutting down on minor expenses won’t have that much of an impact, finding other ways to earn is what will get you ahead.

Instead of fretting over spending a little extra on a cup of coffee, you should spend that time learning how to invest in stocks, getting the right banking plans and tailoring your expenses to accommodate those activities that will actually make a difference.

Saving that extra cash by refusing to spend it on a cup of coffee and telling people that you’re trying to cut down on expenses is dumb. You aren’t getting by on food stamps are you?

Let me repeat this once again, cutting down on expenses is a great strategy, but the income you receive each month remains the same. If you want to save more, it makes sense to set up more income streams that will pay for some of your minor expenses.

Maybe you like writing, or maybe you love creating digital artwork, and pretty proficient at it. You can sell your services online, and make some cash on the side.

This is another way of looking at it.

Spending Like a Maniac

When we spend, we do so frivolously. The pressure we put on ourselves to save during the weekdays is released by spoiling ourselves silly during the weekends or on special events such as birthdays and anniversaries. There goes your coffee savings.

Well, at least you aren’t spending on both. You are saving up for that weekend party aren’t you! Sure, you might end up spending a little more, but you saved as much as you could! You deserve to spoil yourself a little.

YOLO right?

You only live once, but does that wallet have to keeping getting massacred?

That right there is the problem. You don’t see it which is why you don’t get it.

Its Wasted Effort.

There’s nothing wrong with wanting to save in those areas, but the focus is only limited to those tiny gaps. Stop chasing after the small fishes and start hunting the big ones. Those are the ones that will make a difference. Catching a school of sardines won’t bring you as much profit one large Pacific Bluefin Tuna will draw in. Invest in the skills that will catch you those exotic fishes instead of competing for small fry.

You ought to widen your net to include the big boys.

Punishing yourself to improve your finances, only to splurge whatever you’ve saved on expensive bikes and drinks, brings you to square one.

You are pooling your focus in the wrong places. The differences they will make are minute in comparison to those that could skyrocket your finances. Finding potential avenues of income generation is what will make that difference.

Investing in a skill such as speaking with clarity, or learning to purchase the right piece of real estate, will provide more returns than the basic skills that keep you from getting fired does. You can even use the tricks you learn during those endeavors to contribute more to your job, allowing you to get the recognition you rightfully deserve.

In any organisation, the ability to speak with crystal clear clarity is highly sought after. Most shy away when presented with the opportunity of making themselves visible. This can be attributed to a lack of confidence which is directly linked to a lack of practice. Confidence is a result of comfort that comes from repetitive practice to the point that it becomes second nature.

Most people fear public speaking, which is why they are so highly sought after and receive the sort of pay they do.

Let’s look at another skill, stock trading.

Stock trading is excellent for multiplying existing wealth, if you know what you’re doing. Yes, it’s risky and can siphon away all your wealth, which is why you ought to be smart about it before investing in it.

Stock trading is like gambling! And gamblers never make it to the top because of how risky it is!

I guess that makes Warren Buffett a degenerate serial gambler then. It would have been better if he found himself a 9-5 job and stuck with it. Think of all the security he could have amassed. I bet he just got lucky and chanced upon that 88 billion dollars during one of his gambling sprees.

Stock trading is not gambling. In gambling, the only parameter that determines your chances of success is luck, whereas in stock trading you can manage your risks by studying the market and making informed decisions about it.

Now I’m not trying to sound like Warren Buffett’s financial advisor, but it is possible to make a living trading stocks.

Ask Warren Buffett. Or his financial advisors.

Call me whatever you want, but I am a man who knows his stuff.

That being said, stock investing isn’t child’s play.

Nothing worthwhile comes easy, and the ones that dabble in it will reap rotten results, and continue to reap rotten results if they refuse to learn from their mistakes. That’s the whole point of taking risks – to learn from those failures.

Taking The Right Risks

Blindly pooling your resources because someone told you that X will make you hell lotta money won’t make you a fortune. Often times the ones dishing out these advices are either trying to sucker you out of your hard earned cash or trying to appear smarter than they actually are.

Our world is saturated with these charlatans, and they profit from our ignorance. A prime example of this is schooling. After over ten years of schooling, what have you learned about finance? What have you learned about relationships? What have you learned about living well?

Ok class, who all thinks schooling is a total waste of time?

Taking their advice will cost you dearly, which is why I suggest you forget whatever you’ve learned in school, and fill that gap with knowledge from those who have achieved that which you are secretly yearning for.

Successful people are always generous, and are more than willing to share their hard earning knowledge. Some may charge you for it, but that is a small price to pay for the massive ROI it will generate once you apply those principles.

Investing in the Right Places

The key to financial freedom, however, remains the same.

You don’t make money by saving pennies, but by investing those pennies. Saving is the first step – after which you ought to invest that portion into an avenue of your choice.

Yes, it’s bloody hard, which is why most people have jobs and stick to them like their lives depend on them because it does.

You don’t want to be that guy at the end of his line regretting his decision to play it safe – you want to be the guy smiling at death’s door because he’s accomplished all the crazy things he could think off to chart out something for himself in a world that is hellbent on keeping him in the 9-5 limbo.

Be That Guy.

At the very least you could try.

That will give you the chance to retire early and pass on your hard earned experience to your children so that they won’t have to suffer through this unnecessary grind.

There’s nothing wrong with wanting to stick with a job, but chaining yourself to it out of necessity is what clips the wings off your soul. You are investing your time and your peace of mind for it, and if you can’t envision a future in which you will be happy with it then you’re better off without it.

Learn to play the game and invest in the skills that will get you ahead to profit from the differences that matter.

Or you could get yourself a fishing rod and start hunting for those Pacific Bluefin Tunas.

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