In a couple of my many book reads, the concept of creating your own money printing machine was quite common.
At times it was confusing, but the authors of those books were clear that this is the major difference between wealthy individuals and their poor and average counterparts.
In the last couple of weeks I have been reflecting on this and am realizing it is not just absolutely true, but it is a lived reality for the privileged few who make it to the upper echelons of economic power.
For the avoidance of doubt, the concept has nothing to do with cons who print fake currencies to defraud innocent people.
This is how it works:
1. It does not matter where you start for as long as you start – saving and investing is the foundational pillar of setting your money printing machine. The main idea is to just get started nonetheless and keep going, even when it does not feel like it;
2. Create cash generating assets -this may take a bit of time depending on where your starting point is. It is normal to feel it is an exercise in futility, but do not dare quit. This is the biggest exam you’ll ever pass in the journey of money and wealth;
3. Start with a dedicated account exclusively for your savings and investment – channel all your investments through this dedicated account(s) and have all your investment cashflows come back to this account. This creates a loop to safeguard your cash inflows for compounding. Re-invest everything for a couple of years, especially in your early years of starting;
4. Start with safe investments that preserve the principal – a trade-off between high returns and moderate returns that preserves your principal is very critical when you starting. Risky gambles or drowning huge amounts of your savings in illiquid assets like land in your early stages of growing your investment portfolio is a sure deal breaker;
5. Prioritize cash inflow streams while starting – start with assets that earn regular interest or dividends. As you grow, your portfolio can be diversified to capital gain assets and later on wealth preserving assets. The problem is, most people start with wealth preserving assets like land thinking it’s the easiest route to richness. This is like attempting to climb a tree from the top;
6. Hang-on into the long term – truth is, you’ll never notice your money printing machine until after about 5 years of consistent savings and investments. This is unless you are among the lucky few who get big business breakthroughs from the start. Even then, early money breakthroughs must be strategically saved and invested to become long term money printing machines.
You’ll understand this concept the day each month or week or day, something is paying you real cash without any effort on your part. From thereon, you could print your money in perpetuity with just small moves investing here and there -this is what we call a Portfolio!
Grab your copy: WhatsApp+254723584928 or Nuria Bookstores, Bazaar Plaza (formerly TSC building in CBD), 1st Floor, Room 12, Moi Avenue. Free deliveries to your physical location or nearest township.
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The book retail price is Sh.1,850