Not sure if you know this or not but after the harvest a farmer does not sell ALL his grain. He keeps some of it in the barn to plant next year’s crop. Then when the spring comes he does NOT plant ALL his seed. Can you imagine why that is?
If the hail comes and wipes out his crop the farmer has the ability to plant a new crop and still reap a harvest.
So what does all this have to do with you and more importantly money?
When you go to work, on pay day you reap the harvest you have been working for the past week or couple of weeks. What do you do with that harvest? How much of it ends up in the barn – a savings account or as I like calling it, A Financial Freedom Account?
If you are like most North Americans you spend it all.
If you do put a little away into a savings account – then how much do you actually invest? Many people who leave money sitting in savings accounts think they are investing. At 2% to 4% inflation, taxes and cost of living are eating away more than you are making.
Here’s some advice I got from some Millionaire Mentors of mine that I have acted upon to create wealth. Do what the farmers do! Take half of the money you saved and invest it in something. In stocks, foreign currency and yes even in some high risk investments because high risk usually means high returns. But always make sure that at least half your savings are tucked away safely, even if it is at low interest. The purpose of that money is not to make you money but rather for it to be safe so that if something terrible happens to your investments you can recover.
Now if you do not have a clue what to invest in then you definitely need to check out my next post. But rather than just checking back, why don’t you enter your email into the subscription box to the upper right. That way whenever I post and that is not that often, you will be notified.
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