In 1790, Ben Franklin bequeathed to two cities (Boston and Philadelphia) 2000 pounds in sterling silver, with a slight catch. The money was used to loan to young apprentices (he was once one) to help them out. The two cities had to wait 100 years to withdraw part of the money for themselves and another 100 years to get the rest. In 1990 the two cities ended up splitting $7 million (which went into their general funds). The lesson here is that saving some of what you make is a good idea. This is not an easy sell to the right brainer who likes to live in the moment and problably spends everything he makes instead of saving for the future. When you are a ‘starving artist’ living day to day (barely) saving some money for the future is the probably the furthest thing from your mind. That may be, but even if you just put the pennies from your pocket into a piggy bank you are better off than spending every last dime. So let us just look at what it would be like to have some money saved and how to start putting something aside for a rainy day.
Nobody can go back and start a new beginning, but anyone can start today and have a new ending. So even if you have never saved money in the past, it is never too late to start. ou must have heard this before, but I will say it again. ‘Save some of every euro you make”. It is easiest when you get a big payday. Simply take some of the top, and then do what you will with the rest. But to do it the other way, after you pay all your bills, buy some clothes, a new car, take a trip, and so on, it is less likely you wil lhave any left. Take it out and put it away first, then live on the rest.
In the past when I made large amounts of cash, I tended to spend it as fast as I made it. It was almost as if I did not want it sitting around. I now know that money is the fuel that gets my dreams off the ground. What I mean is, I can take the entire summer off and travel and wait for projects that I am passionate about without sorry.
Let us pretend for a minute that you are concerned about your financial fuure and how you will support yourself down the road. Start by adding a zero to what you currently earn to get a good idea of how much money you will need to feel free, to have enough cash flow to keep your current lifestyle even in times of long drought. If you make Euro 40.000, earning a 8 percent annual return you will need a half million euro to have enough income to live lke you do now for ten years. Something to think about isn’t it?
It is a Wonderful Life
Creative people can make money from their ideas. I used to think that you had to inherit money to be really rich. Now I know that you can become wealthy with your talents and skills. Then you have to make that money make more money. The rich (who save and invest) actually do get richer. Money begets more money. They make prudent choices. Because they have money they can take advantage of opportunities. They can get loans. During downturns in the economy they can buy up bargains and afford to hold on to them. Then there is the mindset that once you have made money you know you can do it again. There is also a sense of security that makes them less anxous and desperate. They have an air of confidence, and confidence sells. They feel they are predetermined to be wealthy.
Who wants to be a millionaire? Okay, you can put your hand down now. For a millon dollars answer this queston. The best and most certain way to become wealthy is:
A. Ask for and get a raise at your work. B. Write a book about finances C. Sart a business. D. Save and invest it wisely.
I am guessing you are going to want to use a lifeline here. Let us use eliminate two. Answer ‘A’ will not make you wealthy. You will make more, but likely also spend more. B, unfortunately for me is a long shot. Okay, so it is either ‘C’ start a business or ‘D’ save and invest wisely. Both are good, but one is better. Go ahead ask others. They are telling you to pick ‘start a business’ . It is sexier than saving and investing. But the correct answer is ‘D’ save and invest wisely. I know this sounds soooo dull, but it works to invest in companies who are rule breakers who end up making the rules. Like once Starbucks, Amazon, eBay, Marvel. Creative peopl are the best in seeing how and why these creative companies break the rules.
Creative people are not the best savers, helas. But setting up a savings plan and sticking with it is the key component to most millionaires’ wealth. Set a goal of becoming a millionaire and with time and some smart moves, you can make it happen. Increase your income and/or cut back on spending (and get out of debt). Find a few great rule breaker investments, and put your money to work. See, now you don’t need to buy another book on money management. That is all you need to know. And buying the shares of a great company when they are cheap. Warren Buffett made his billions by buying stocks of great companies who were undervalued. Holding them and waiting for the market to recognize their hidden value. It sounds so simple. But that is where wealth comes from. Saving, investing and long term thinking.
Luxuries are not as important as your dreams. Stop trying to keep up with trends. Is it not more important to pursue your passion and not possessions? What is your idea of wealth? To lie on the beach all day, every day? To have happiness, contentment, focus, direction, passion, freedom, fame, purpose or critical acclaim? This does not require money. Even so, how much money would make you feel wealthy? Why do you want wealth? What would you do if you didn’t have to work? If you do what this guide tells you, it is possible. Being a creative heroine is not easy. You may never have the security and riches of someone with a regular job, but if you play your cards right, you can be better off.