You may find that, although you’re far ahead of your neighbors financially, that you’re still not as prepared as you’d like. This article presents 4 steps to approach the problem.
Step 1: Liquidate
Chances are high that you have too much “stuff.” Your garage, basement and attic are so full of possessions that you may be renting a storage unit for the overflow. That stuff is costing you money in storage fees, in depreciation and in the weight of psychological baggage and, right now, it has a market value….Get rid of it. Sell it in a yard sale or sell it on eBay...The cash it generates will be helpful for the rest of the plan.
Just as important, you’ll feel light and mobile. Unburdened by a bunch of possessions that own you and weigh you down. It will definitely improve your psychology, which is critical to the next stage.
Step 2: Consolidate
…Your main assets aren’t money or things, however, it’s the knowledge, skills and connections you possess. Take stock of them. What do you know? What can you do? Who do you know? Make lists and think about these things, with an eye to maximizing their value.
If you’re light on knowledge, skills and connections, then do something about it…
Step 3: Create
Remember, the essence of becoming wealthy is to produce more than you consume and save the difference.
…You want to be the cause for everything in your life and that implies working for yourself or, at the very least, turning your present employer into a partner or an associate…Think like an entrepreneur at all times…
Step 4: Speculate
…You’ve got money. Now you have to keep it and make it grow, because staying in the same place amounts to going backward…as the dollars you own lose value…
Saving with dollars will be foolish, as they dry up and blow away and investing according to classic rules will be very tricky in a radically changing economy…Rational speculation is the optimum approach.
What Am I Doing with My Money Now?
Very simple. I am investing in:
- lesser amount of silver,
- a lot of productive agricultural real estate, especially beef and dairy cattle,
- a lot of speculations in resource stocks,
- the occasional flyer in a tech deal or a private business,
- a great deal of geographic and political diversification and
- patience for a time when I can again buy conventional investments with some confidence.
The Bottom Line
If you want serious money, you have to get serious about money. You need to understand the following fundamentals and never forget them:
- Don’t let all the garbage reported in the financial media you read, see or hear confuse you about what money really is.
- Don’t consume more than you make: save! Don’t spend: invest!