Wealth accumulation is a natural desire of every human being. No matter how many things a person has, he/she always wants more. Nowadays, “easy money” traps and short-term income promises are at every corner. Despite a huge variety of educational literature and business-related courses, truly successful people can be counted on the fingers of one hand. What is the secret of their success?
Define a sequence
Society mainly focuses on how to ACCUMULATE money, placing less emphasis on how to PRESERVE it. Countless seminars, courses, training and books teach us how to get rich quickly and easily. This niche has long been filled by lecturers and business coaches, many of whom, for some reason, are far from being millionaires. According to their theories, everything is surprisingly simple – take a risk, invest, follow a few simple steps and everything will work out well! In that case, why aren’t we surrounded by overachievers and super-rich entrepreneurs, but instead, the number of bankrupt companies increases every day?
Perhaps, prior to accumulating capital, you must first know how to preserve it.
“Life is short, live fast, make the most out of life!” states the famous quote. A lot of people try to live by such rules, forgetting one simple truth: to make “the most” out of life, you need to give it something in return. There’s no other way. The ability to PRESERVE comes to the fore, allowing you to effectively accumulate what has been preserved earlier and live a life full of blessings.
Let’s take an example. A person wants to buy a property and earn money by renting it. Real estate, as you know, costs a lot of money. After sorting out the budget, this person realizes that he/she can’t afford even a one-room apartment. Low salary has nothing to do with it, the real reason is: savings weren’t properly taken care of. On top of all that, unnecessary spending and inflation reduced a fair share of savings. Now there’s a need to get a mortgage loan, which is proven to be quite a money pit. Besides, the new apartment has yet to be furnished. The question arises: is it worth it?
Preserve to accumulate later
Profligacy and zero knowledge about the fundamentals of capital preservation often lead to disastrous consequences. Even if you are thrifty, you still can lose the accumulated amount, especially if you don’t follow the basic rules of financial security.
As a matter of fact, it is impossible to accumulate anything, without preserving something. Firstly, it may turn out that there’s nothing to accumulate. Secondly, it won’t be possible to preserve what has been accumulated. Success will most probably come to someone who can preserve and keep money safe, as opposed to someone who mindlessly spends in hopes of making a fast buck.
By preserving your capital wisely, you can:
strengthen your financial position and create reserves for the future;
deal with debt problems and prevent their occurrence;
effectively achieve set goals and capitalize on existing assets.
How not to lose your savings and protect them, generating future profits?