MODULE 4: Money, Lesson 17
9 Money Advices
Adnan Ul Haq
9 Money Advices
Adnan Ul Haq
Learning what is useless can save you a lot of money and even your life. This is not a myth; you must consider what is right for your financial freedom.
Here are 9 advises that will help you get financial stability:
The first thing is that saving money is important because of increasing inflation. Saving alone is not enough; you have to invest your saved money in some real assets such as you can buy a shop, house, or any building. Investing in real assets helps you generate a passive income in the form of rent.
Sidestep From Excessive Debts
If a person has a property worth 1 crore and gets a loan of 1 crore to buy it at a 6% rate of return. He then invests in the same property at 12%, which means he has earned 6% money using debt.
Or if he sells the 1 crore property for 2 crores after appreciation, there he also earns a crore rupees. Technically, he earns 6% per annual and also earns appreciation for other people's money.
In this way, debt is your tool, and you have built your assert through it, but here we only want you to take a smart loan. We do not want you to take excessive loans and invest in businesses or properties, and then one day, you face a loss and are left empty-handed.
Don't Wait For Government Jobs
The government does not pay well and plans to convert a lot of its jobs to short-term contracts, meaning your salary may be cut even further if you get a job with the government. It is also threatening to sell off many of its departments, which would leave thousands of people without jobs and mean that pension payments would end. Because you would keep getting paid only until your retirement date, and thrift benefits would stop as well.
Accomplish Smart Work
It's better to focus your efforts on smart work than hard work. For example, a laborer works for 8 hours, but an engineer or doctor who works 15 to 16 hours earns more. That is because these people are using their brains, while the laborer earns just minimum wage.
Keep Up With Pricing Stats
It may be a good idea to sell your property before the rate goes up. Definitely invest in an under-construction apartment after you sell. It is wise to sell in a market where the growth has stopped and buy in a place that is having growth.
But if you see the property prices are getting lower, then it's time to invest. You should buy more and more assets at that time.
Seek for Skill and Knowledge
There's a common belief that if you get good grades, you'll be successful later in life. But this isn’t always true. In fact, many of the people who earn high marks when they’re young end up working simple jobs later in life.
On the other hand, medium-grade students tend to go on to study at higher levels because they acquired skills while learning. As long as you're learning skills, you'll also perform well in school.
Individual who seek skill and knowledge is always superior to the one who just focuses on studying.
Getting the skills you need to succeed in the workplace is important, but as a member of society, it's important to recognize that we all benefit from playing it safe sometimes. Risk-taking is important because, without risk, we don't have any chance of gaining.
You should take small risks to get the reward, and then you can move to critical ones.
Money from Money
It used to be that money was a prerequisite for making money, but today even a little kid who makes a website can get millions of users and generate a good sum of money. Technology helps you make money, and so does skill. Learning from the smartest players out there will also yield results. Plan your own path to success.
Involve People to Your Work
Society encourages you to work hard. If you do everything yourself, you will be limited by the amount of time you have. To make more money, you should involve other people in your work. Use the time of other people to generate money for yourself.
Always be careful when you take any advice or suggestions, especially in the financial segment. Not everything is useful.