Three great ideas for financial success

To gain wealth, you must spend less than you earn. This is the fundamental law of money.

I’ve learnt it on GetRichSlowly, a great blog about personal finance. The conclusion is obvious. To gain wealth faster, you have to spend less or earn more or both. As simple as this.

Have multiple sources of income.

Probably for most people, the only source of their income is regular job. When you are an employee, you trade your time for money. Time is very valuable resource and it is limited. You can’t work more than 24h per day and night. You earn only when you work. Another disadvantage is that your work usually has higher value than you earn for it. One reason are taxes, another is that your company or boss also want to earn on your work.

Better sources of income are different types of investments. You invest your money and in result you get more money. This is usually passive income. You earn even if you spend time with your family or read my blog. Unfortunatelly this is not so easy. If you want it as your only source of income, you already need a lot of money and good knowlegde in investments. Of course, if you are a poor investor, there is possibility that you will lose money.

The best solution is to have multiple sources of income. Obvious, again. Run your own bussiness, invest, freelance, write and sell a book, start a blog. Even if one source would fail to provide income, you have others. When you lose your job and you don’t have any other income sources, you have to react quickly. Quite often quick and desperate reactions have poor effects.

Do what you love, the money will follow.

I love this sentence. This is from title of Marsha Sinetar’s book.

When you dislike your job, you think about making money, not on quality of your work and value you provide. Or you think for most time about something absolutely not related to what you have to do. Your productivity is very low as well as you don’t feel this positive energy that will kick your motivation. These feelings are in your head when you wake up in the morning and remains for almost whole day. This is horrible. You must change it.

You have to start doing things you love. The money will follow.

There are hunders or more success stories in the internet, how people transit from work that they hate, to the situation where they earn on their passion. Don’t you want to follow their route?

If you love what you do and you can earn on your passion, then it’s great. You don’t have problems with motivation, procrastination, troubles with getting things done. You enjoy the time, while earning money.

It is very likely that you already know these ideas. They are very common and popular. Why? Because they are simple and they work.