Using your mind and being alert to money is simply one side of the coin to money. When doors of opportunity and floods of money eventually come your way, as surely as they will, then you must take the highway to your financial freedom. You see, the rules to money are simple, straightforward, and universal. They can be applied by anyone regardless of profession, education, or vocation. God/Nature was so gracious that she accords each and every one of us a fair chance.
Interestingly however, generation after generation, only a small minority of people make it to the top echelons of money and the great power it accords its’ holders. The available evidence for the past several years consistently points to the fact that about 50% of the wealth around the world is in the hands of only 1.2% of the world population.
Economists project that even if this wealth was re-distributed equally, it will only take about 7 years before it reverts back to the original 1% who held it in the first place. One of the widest surveys done in the USA recently showed that about 79% of US millionaires are self-made (simply put they inherited absolutely nothing from their parents/guardians).
The most difficult question is: If God/nature was so gracious to accord each and every one of us equal opportunities, how is it that only a very so small minority gets to enjoy her beauty & plenty?
In this article, I introduce you to the greatest wisdom and power, that is time tested from the ruins of the great city of Babylon of old (if you have read about the Richest Man in Babylon, then let’s diagnose these together; if not hear this time tested wisdom). Make no mistakes, these rules can work for anyone…but if you are in your 20s & 30s and are reading this, the world is yours for asking –if you expire a pauper, only the gods can know how to deal with those of your kind!
The greatest skill that you must master to start on your climb to financial freedom is the art of compounding, what I call here setting up your golden slaves. This entails building safe investments, often earning you regular earnings and continuously re-investing those returns. This is what the Richest Man calls creating financial slaves for themselves, enslaving their children, their grandchildren, and if possible their great-grandchildren.
Once you set them up, thou shall not eat them under no circumstance….and if you must eat them….then only start eating from the great-grandchildren (chances are that by then you will never be able to dent them enough to diminish their earning power).
It is true that we are going through a season of unprecedented economic turmoil…but did you know that if you had some sh. 20 million somewhere, as of this week you could make at least about sh.2.5 million per year for the next 5 years without ever waking up to go to work? If you had a million you could earn over sh.1250,000 for the same 5 years without ever waking up to go to work. If you have sh.100,000 somewhere, next week you could make about sh.9,000 without a single drop of sweat.
Why do I say this? The Central Bank of Kenya has issued several bonds with a fixed interest of between 11.65% -14% (these bonds are being re-opened every other week with some being tax-free). If you had such savings, the only thing you needed to do is apply & transfer the cash to them and go about your daily hustles…and every 6 months the interest would hit back into your account without fail nor sweat in the world!!
But there are rules & principles that you must abide by. Allow me to deconstruct them in the simplest of terms possible:
a). Thou shall save at least 10% of all your incomes faithfully (this MUST be your first expenditure item in your incomes/budget come rain come sunshine). Personal financial experts call it paying yourself first. It is completely irrelevant what that amount is, be it 1, 10, 100, 1,000, or even a million shillings, just set it aside & never refer back to it again except if and only if you move it to a safe investment where it earns you more gold.
In an earlier article, I referred to mastering your finances by knowing what you earn, when you earn & how often you make an investment decision. Currently, every bank in Kenya has a savings account that does not allow more than 4 withdrawals a year, no minimum balance, no charges & at least earns you some small interest. Just shop around for the best offer in town and get rolling with your saving plan.
b). Thou shall exploit the power & magic of compounding – whatever interest or dividends you earn from this 10% and its investments thereof (her children), re-invest back into similar safe investments. Re-invest also the interest of the interest (her grandchildren) and watch its exponential power soar you to the glorious world of money power.
c). Thou shall always remember the ‘golden rule’ of gold, that is, gold attracts more gold! Nobody knows why, but it is absolutely true that the moment you start this kind of savings, money will flow to your world from corners you have never imagined & ways you will never understand. Money goes where there is already money (if you doubt this, have you ever noticed when you are completely broke, it is when everything seems to end in your house & when problems suddenly start emerging from anywhere and everywhere)? You must never allow yourself to crawl to zero and this 10% savings is a sure bet!
d). Thou shall see, hear & denounce the demons of poverty. This is how it works, if you can only save 100 shillings a month, your first impression will be like you will need 833 years to save a million; if only 1,000 shillings, then it will take you 83.3 years & if only 5,000, then 16.7 years. Am definitely sure you are familiar with that noise…right? This is what traps millions of people never to start & thus condemns them to a cyclical life of misery. The truth is always 1000 times the opposite because (1) it blinds you from the magical power of compounding (b above), and (2) the mythical magnetic power of gold…that money attracts more money (c above).
e). Thou shall pay your debts and honor your obligations –money will never ever come to a person who is not faithful with it (gold), however little it is. If you borrow, then pay up your debts to the last coin. This is the ultimate demonstration of faithfulness and responsibility with money. The rules of money honor such faithfulness. I will dare anybody who reads this to show me anybody who ever made & retained money by not paying their debts. That which comes by the winds….goes by the wind and the controller of the kingdom of money is absolutely just on this!
As I conclude, I wish to remind you that it does not matter what your trade is, it does not matter how much income you earn, for as long they are just sources –these rules are universal and apply to everyone justly!
Lastly, if this does not star you into action to start your savings immediately, then you can as well as forget that you ever read this article. That is just the way it works!