According to the genius and multi-billionaire investor Mr. Warren Buffet, there are only two rules in making it to success; “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.” This is also one thing that most of new entrepreneurs miss. They basically think that having enough money to start up a business is enough. Having a limited fund often results to business failure. Aside from having the initial capital, the business needs to have its own cash in the bank to sustain and support the business. Business should be independent and not just an extension of your personal finances.
However, if you’re not into business and you want to achieve financial independence, you have to work twice as much being a regular nine to fiver. It’s not really very easy to have a handy cash when your salary is just enough to cover all the dues. It’s not easy but it’s possible. If you don’t really want to lose your money, then you have to adjust your expenses. You have to learn to live below your means. Cutting off your expenses will not hurt so bad. It’s like compromising the less important matters for greater things in the future. Below are some of the steps to never lose the money.
1. Floating. I am not a very good business man. In fact, I still seek for professional advice to this date when it comes to my business. However, there’s one thing I believe I am good at and that is floating the money. If you have bad spending habits, the best way for you to never lose your money is to actually float them. Here’s what I do. With every extra cash I have, instead of spending them on stuff which I always used to do, I try to purchase something that never depreciates. The best example is gold. I also purchase money with money. What I do is I buy whichever currency has the lowest selling price and keep the money until the buying rate goes up again. It’s passive income but the money is safe. Sometimes with the right timing, you can actually earn good with currency trading. There are many more ways to float the money. With the advanced technology, buying and selling online becomes so easy, thus floating money is not really a problem.
2. Investing. There are many ways to invest your money. From investing to the biggest companies by buying shares to investing in some small or starting but promising companies. You may also try stock exchange although I don’t usually advise it especially if the person doesn’t have background of it. We know the risk in investing in stock exchange but if you’re going to think about it, there’s simply risk in everything. The secret is to only invest an amount of money that you can afford to lose.
3. Converting. If you have one skill that you know you are good at, then you may by all means make good use of it by converting your free time to money. You may offer tutorial, write articles or blogs, create modules or even offer professional consultation in the field of your profession. You may also consider engaging yourself in some speaking events where you can give talks about the product or service of your expertise. I used to host events in the past and I did it during my rest day from work. It may be passive income at first but once you establish a name, rest assured that you will never go back to that broke state again. - M.D.
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