Just about everyone on Earth wants to have more money, not because money in of itself is that great but for the things that money can buy, Some of these things cost very little but life’s most precious material items tend to cost a lot. Not to mention, money solves a lot of problems, both immediate and long term, and getting it is what keeps most of us driven each and every day. It is the reason we work, save and invest. However, there is more to money than what meets the eye. Some facts about money are common knowledge, while some will utterly shock you so here are 5 brutal truths about money you need to know now!
Truth #1: Saving Won’t Make You Rich
Saving money is great, but if you’re looking for true financial freedom, saving money in the bank shouldn’t be your only strategy. If you want to buy a car in the next few months, or you want to go on a holiday, or maybe you just need to have a stack of cash put away for unforeseen expenditures in the future, then saving money is an effective tactic. However, if you are looking to multiply wealth and have your money work for you, then savings can only take you so far.
I’m sure you know a good number of billionaires, I’m talking about people like Bill Gates, Jeff Bezos, Jack Ma, Warren Buffett, and Oprah Winfrey. Have you ever asked yourself — Did these people become rich by saving money, or did they become rich by letting their money work for them?
If you don’t have an answer to that then I’ll tell you — They put their money to good use and allowed it work for them. Money is just a tool, and a tool should be put to work, and not left to pile up in a toolbox. So, how can my money work for me, you ask? The answer is simple, you invest it.
You can’t “eat” or “drink” cash, it is only a means of exchange. Therefore, the best use for it, that is if you’re looking to become rich, is to invest it. Real wealth is having lots of assets, and not necessarily lots of cash. This is because assets keep raking in money, while still remaining yours, while money stashed in a savings account generates little to no profits.
Once again, saving money is great, but it should be used to acquire assets that will increase your inflow of cash. Just so you’re clear, an asset is…