Saving & Working Will NEVER Make You Rich! - Financial Freedom Episode #6

We all know working will never make you rich, some people know saving will never make you rich, and only the few know what to do. So let me enlighten you!

Image source: https://www.pexels.com/photo/brass-round-7-stack-coins-40140/

Why Work Anyway?

So if working doesn't make you rich, why would you work? Most of the people who are shouting from the rooftops that working will never make you rich are forgetting that, at least in the beginning you will need to work in order to create an income. Except of course if your daddy is paying your bills, or you're a trust fund kid, you won the lottery or have some other for of income. So let me tell you the truth: work to have an income and then >>>>

Saving Never Makes You Rich?

Nope at least not anymore. As I've been saying many times before saving money will not make your rich because all it does is creating a pile of money, that is subject to inflation, and currently doesn't earn any interest (at least here in The Netherlands current interest on savings are 0.05 %). However, yet again, those claiming that saving will never make you rich fail to mention you have to save up some money first and then >>>>

Investing Is The Goal?

Well, not entirely right? I know loads of people who have invested their money and put it in stocks or barer-bonds and value has gone up and down, and sure in the long run you average 6% maybe 8% if you're lucky. But you cannot live off of that since there are no monthly payments, and if value ever does go down like in 2007-2008 you cannot pay yourself of the non-existing interest. The point is to invest in something that offers a small or large monthly return. No matter what happens, if you want to live of your money, it needs to be coming in every month.

What To Do?

So here's what you should do if your goal is to become financially free:

1. Create as much income as possible.
2. Save as much as you can from this income.
3. Invest these savings as soon as you can in something that offers monthly returns.
4. Potentially re-invest the returns if you want to keep growing.

Make sure to read and watch the other episodes! Next week I will talk about increasing your surplus by applying a minimising and maximising approach! :)