In this article you will learn about the traps that prevent your financial success; and the solution to avoid them.
If there is anything we must learn from the high unemployment rates and the growing job losses that the economic crises have left behind; It’s just that having a job doesn’t give you the security you need. Today you receive your payment but the following month is uncertain.
Unfortunately, the problem of this insecurity lies in the fact of depending on a single source of income. Which reminds us of the so-called concept of risk diversification: “Don’t put all your eggs in one basket”.
Also read: 5 excellent ideas to make extra money.
This also applies to those entrepreneurs who have all their money and effort invested in a single product. Have you ever thought about what would happen if your boss fired you or if your product was a complete failure? Surely you would have serious financial problems.
Mark Morgan Ford, entrepreneur, investor, and author of books such as “Stealth Income Strategies for Investors” Y “Persuasion: The Subtle Art Of Getting What You Want”, affirms that his wealth comes from the profits that his investments leave him and the different businesses in which he has participated throughout his career. Also, the way he has reinvested these earnings.
Anyone might think that starting a business or making an investment is much riskier than keeping a job; what is true and false at the same time.
All investment is risky. However, winning a single investment, even after losing several times; it gives value and justification to all failures.
Read also: A study reveals what are the only ways to become a millionaire
Mark calls this strategy develop multiple streams or sources of income, which has generated automatic monthly cash flows; which last year represented more than 6 million dollars.
Money you earned without going to an office; without a boss or doing things he didn’t like. This was stated for the Early to Rise portal.
Also read: 4 ways to generate money apart from your work.
Traps that prevent your financial success.
For this entrepreneur, when you do not generate multiple sources of income, you fall into one of these 2 traps that prevent your financial success:
- The employee trap.
- The trap of thinking that they do not have enough money.
1. The employee trap.
To explain the first trap, Mark M. Ford takes us back to the basic concept of Robert Kiyosaki, in the book “Rich father poor father”; of don’t trade your time for money.
A large percentage of the world’s population is salaried. They are architects, engineers, lawyers or doctors; all exercising their professions, but charging for their time.
The problem with this scheme is that the only way to get more income; is increasing the value of your labor per hour. Or worse yet, work more hours.
Some people get to have large salaries and occupy important positions in their companies. Positions that they conquered by working very hard; giving a great deal of his time.
As you increase your skills and knowledge, or stay longer in a company; you may be able to multiply your salary.
The problem is that you must always be at work and you will depend on it. You can’t take vacations whenever you want; but when your work allows it. You can’t quit because you have bills to pay and a lifestyle to maintain.
2. The trap of thinking they don’t have enough money.
The second trap refers to the thought that always stops us: “I don’t have enough money.”
You may not have much, but that doesn’t mean you can’t do anything for that reason. On the contrary, if you don’t have money, you better start now. No more excuses!
Generate more sources of money, get extra income from your work!
Also read: 4 incredible ways to generate extra money
To get to the point of being financially independent, you must acquire enough money to invest and live off your investments without the need to work.
Obviously you need a considerable amount; and to get it you must save. That is the first step.
However, if you do not have a good salary that allows you to accumulate generous savings; you will hardly have the amount you need.
For this reason you need additional sources of income. You may be able to increase your savings by cutting your expenses. However, you will not achieve substantial increases in savings.
Also read: What is the stock market and how to invest in shares.
The key is to save and create additional income to increase savings and invest all that money.
Mark M. Ford recognizes the importance of time and perseverance, highlighting that the most difficult; but at the same time the most important thing is to start. Once you do, ideas, opportunities, and cash start flowing automatically.
Conclusion.
The way not to fall into the traps that prevent your financial success; is generating multiple sources of income and saving.
Think of a loop:
Savings>Invest>I create more sources of income>I save more>Invest>Etc
The most important thing is to start. What are you waiting for?
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
