Virtually everyone we know wants or ‘needs’ more money than they have. This is not surprising, we all have plenty of uses for money. We use it to buy nice things for ourselves or those we love, give it to charitable causes, pay for the services and products we use, etc. While it is not surprising that virtually everyone wants more, it IS surprising that very few people take their time to educate themselves and learn about the many ways they can invest their money so that it will create more money for themselves.
When I first read “Rich Dad Poor Dad” I read about a concept that fascinated me, it was the concept of passive income. It is the idea that there is the possibility to generate some cash without having to be actively ‘working’ to get that money. The money doesn’t fall from the sky, rather you build a source for it. Different sources of passive income can be dividend gains in stocks, interest income from savings accounts, income from rental properties, a paycheck from ads on your website or blog, royalties for published books, etc. There are many other options, you just have to find about them.
Most people I’ve talked to recently have very little idea of ways in which they can generate passive income, or have never thought about it. Many talk about how they don’t have any money to invest, yet you see them buying the latest gadgets Apple has to offer (new iPod/iPhone, anyone?), or eating out a couple of times a month. That, by itself, could be the money you use to ‘jumpstart’ your investments.
Many people think that they will start investing “when they have more money”, but that never happens. Try a different approach, start investing now so you can actually have more money, and continue investing. Each dollar you invest today can start making more dollars for you. Wouldn’t it be nice to have some of your money working for you?
I love the ideas and concept of investing, hence why I’m writing this post. I think there are far too many people close to me that are not spending enough time learning about something that could be the difference between an okay requirement or a GREAT retirement. Many of us are ‘far away’ from retirement, but what some don’t realize is that it is because of that same reason that we SHOULD start investing now. Have you heard about the compounding effect? If yes, then you already know why saving NOW is so important. I’ll write about the compounding effect later on to explain it, but basically, money you invest when you are 25 will become a lot more money over time than money you invest when you are 35 because it has time to ‘grow’ through your investments.
Thoughts, comments, questions? Feel free to write them below, or tweet me @omareduardo