In this era, everything costs money. To fulfill almost any of your needs, you will require money. Without money you are a person with limited ability. With money your options are endless. So to survive this era and to give your family good protection and security, you require a lot of money.
Let's think how money is achieved. Money is something what you cannot produce yourself. It is given to you by someone else possibly in exchange for a product or a service.
So to generate enough money basically you have to either
1 - trade products
or
2 - offer services
If we look around we may see everyone who is making money fits under any of these two categories. But still the money a person makes in a single month vary from person to person.
Our question is why some people make barely hand to mouth while others save piles of cash each month?
What is/are the hindrance/s that blocks oneself from making piles of cash?
If we explore some possible causes there are few factors.
1. Amount of investment (in terms of trading products / businesses )
2. Quality and availability of services ( in terms of service holders / service oriented business)
3. Living cost.
Amount of investment - This is one crucial factor. This is the main factor where every trader stuck right at the beginning - the amount of money to invest. Everyone begins with what they already have and hope to increase it by re-investing from their profit and make it bigger and bigger. Some may success but many fail due to heavy living cost or other factors.
This is evident that if anybody has quite a large amount of investment in a business, he can generate a healthy sum of money each month.
On the other hand, this is a challenge for a beginner who start with low investment.
Quality and availability of services - In the service industry the quality of service and how many people can benefit from it makes or breaks many things. A hospital with top notch quality or reputation will make more money than one who has mixed reputation. The same goes to a simple service person. If someone can do his tasks effectively and also manages his peer's/colleagues problems effectively - he has greater chances to be promoted to a higher rank, to make more money. On the contrary, if someone gets stuck with his own task and doesn't do it very well, he is probably will not see much progress.
Living Cost - The last crucial factor, often overlooked is the living cost. Two person with same salary range, one has to manage a family with 4 member and other has 7 members. The one with 4 members should make more money.
Living cost actually doesn't consist only what we eat or pay for rent etc. It includes a wide array of spending. It is that main factor why we wish to make more money, to make a better living, to fulfill all our needs, and simply to spend more.
So in simple analysis, if your monthly income is high and your living cost is high also you're not saving good money. If your living cost is low and your monthly income is high you're saving good money.
If saving good money is our ultimate goal, then we should focus minimizing our living costs and increase the amount of incoming money. If everything is done with good planning and with consistent effort in a tenure of 2 to 5 years a person can gain some real wealth to his depository.
Let's think how money is achieved. Money is something what you cannot produce yourself. It is given to you by someone else possibly in exchange for a product or a service.
So to generate enough money basically you have to either
1 - trade products
or
2 - offer services
If we look around we may see everyone who is making money fits under any of these two categories. But still the money a person makes in a single month vary from person to person.
Our question is why some people make barely hand to mouth while others save piles of cash each month?
What is/are the hindrance/s that blocks oneself from making piles of cash?
If we explore some possible causes there are few factors.
1. Amount of investment (in terms of trading products / businesses )
2. Quality and availability of services ( in terms of service holders / service oriented business)
3. Living cost.
Amount of investment - This is one crucial factor. This is the main factor where every trader stuck right at the beginning - the amount of money to invest. Everyone begins with what they already have and hope to increase it by re-investing from their profit and make it bigger and bigger. Some may success but many fail due to heavy living cost or other factors.
This is evident that if anybody has quite a large amount of investment in a business, he can generate a healthy sum of money each month.
On the other hand, this is a challenge for a beginner who start with low investment.
Quality and availability of services - In the service industry the quality of service and how many people can benefit from it makes or breaks many things. A hospital with top notch quality or reputation will make more money than one who has mixed reputation. The same goes to a simple service person. If someone can do his tasks effectively and also manages his peer's/colleagues problems effectively - he has greater chances to be promoted to a higher rank, to make more money. On the contrary, if someone gets stuck with his own task and doesn't do it very well, he is probably will not see much progress.
Living Cost - The last crucial factor, often overlooked is the living cost. Two person with same salary range, one has to manage a family with 4 member and other has 7 members. The one with 4 members should make more money.
Living cost actually doesn't consist only what we eat or pay for rent etc. It includes a wide array of spending. It is that main factor why we wish to make more money, to make a better living, to fulfill all our needs, and simply to spend more.
So in simple analysis, if your monthly income is high and your living cost is high also you're not saving good money. If your living cost is low and your monthly income is high you're saving good money.
If saving good money is our ultimate goal, then we should focus minimizing our living costs and increase the amount of incoming money. If everything is done with good planning and with consistent effort in a tenure of 2 to 5 years a person can gain some real wealth to his depository.
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