Here's Why You Are Not Rich!

in introduceyourself •  7 years ago  (edited)

My very first post here on Steemit sharing the only 2 things you can do to become Financially Rich.

Now I know that most, after watching this video will say: yeah duh-uh, of course.
Well if it is such a logical and well known principle, how come you ain't doing it?

So the two steps are simple:

  1. Create a Surplus
  2. Invest that Surplus

Most people that I know who don't follow this principle tend to point out they simply do not earn enough to create a surplus big enough to invest. Hello? Well here we are on Steemit where you can invest as little as $10 to start making a change!

However, the biggest issue I notice is, as someone posted on my YouTube video recently:

"If I had a Billion Dollars I would give you 100 million"

No you wouldn't because that would mean that with your, let's say $10.000 right now you would give me $1000. And then all of a sudden it's a different story. It doesn't matter how much you earn, there is always a way to save a little on the side. Yet don't let that little bit or large chunk of money sit in your bank account collecting dust. With interest rates as low as 0.05% here in The Netherlands, that's right! not 5.00 % 0.05 % !!!! you will lose al your money on taxes and inflation.

So figure out where it's going wrong with you, are you not creating a big enough surplus to make a difference in your financial life? Or are you not investing that surplus?

Btw, even someone who got rich from the lottery got rich using exactly these 2 steps, it is applicable to every situation.

1: Harold works at 7 eleven and earns $1400 a month of which he has $150 left at the end of the month. (surplus)
2: Harold decides to buy a lottery ticket for $5 of the $150. (Investing, yes maybe a stupid investment, but hey).

Harold became financially rich due to dividends of his investment.

Here's a written version of the video:

So there's only 2 things you can do in order to become financially rich. Only two things. And those two things are: One, create a surplus. Two, invest that surplus. So if you're not rich right now it means that you're not doing either one of them or neither of them. Now it's very easy: what is a surplus? Let's say you earn $2000 a month, you spend $1500 you have $500 left. That is your surplus. Now most people have a surplus, but they spend it on stuff. So either they save it and then use it to go on holiday or buy a car, or they just spend it on buying new clothes or going out for dinner. That's fine, you'll just never be rich. So: Take the surplus and then invest it. That's the second step. So now go figure where is it going wrong with you? Are you having a big enough surplus? Yes or No? Are you investing that surplus? Or maybe you don't have a surplus and you're not even investing whatever little bit you do have left. And that's why you're not rich...

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This is hilarious...you're throwing money away into bid bots, actively losing money, and telling people how to make money... You're dumber than a really stupid robot.

Beautiful .. well done
Yes the personality was wonderful can say it was balanced
Thanks for sharing‏

Great first article!
Some topics always seem incomprehensible complicated and finance definitely belongs to this topics. But in most cases the principles behind it are totally basic and easy and everyone is able to unterstand it!
If we adapt out behavior to it is everyone's own choice, but we all have the possibility! :)

Thanks for your simple explanation!

Thanks for getting exactly what I meant with this post! :)

Love posts that get people thinking - this one does. Well done and welcome to Steemit. I wish you great success. Yvonne

Thanks Yvonne! :)

@yvonneyoung :) follow & upvote :)

Lovely day!

  ·  7 years ago Reveal Comment

Simple presentation but powerful message . Thanks a lot man. Done a great job . Good luck in steemit.

Thanks! :) glad to hear you like it! :)

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nice advise~

Thanks! :)

i agree with that so much:)

I think that calculating 2000-1500= surplus 500 is a bit to optimistic for the real life situations of many people, but I would say that is must be possible to set apart in between 10 -100 for most people each month.

The interest rate is so low that it does'nt make sense to put it in a bank savings depot, so you have to DO something with this surplus.

Buying a lottery ticket is the same as praying that Bill Gates will give you 100000 or just throwing your bucks in the toilet and press the flush button.
Lotteries are not an investment.

An investment is someway to put in money and became partial owner of it in a way. Like stocks in a company, or here on Steemit.

I would say that investing your surplus partly each month in steempower is an investment.
And in the long run a good one I hope.

Hey vjbasil,

so I totally agree, yet here is what I mean:

  1. Everybody who got rich themselves, did it by doing 1: creating a surplus 2: investing that surplus, so even in the stupid example of a lottery ticket this basic explanation still applies, I'm sorry if that is confusing, but I meant it as a: 'even in the case of a lottery ticket, in essence those are the two steps that have been followed'.

The surplus of $500 is a bit much indeed, yet as explained in the video, I see the surplus as every bit of money left over after necessary costs. So, therefore, clothes, going out for dinner, expensive meals at home, a TV set, but also saving money for a holiday etc in my opinion are all things that people spend money on, yet are not necessary and therefore are paid out of the surplus. If you calculate it like that a 25% surplus is mostly achieved by most people.

However, again, they will usually spend it on new jeans, and getting sushi, and then claim that they get bare necessities, which isn't really the case. Yet this all comes down to how radical you are in creating a surplus :)

But yeah I would say that the investment surplus of someone earning $2000 should be somewhere around the $100 - $150 mark.

Thanks for liking the post and your valid points! :)

Yes right!

I found that I see lots of people who do not earn a lot, just spend it up to the very end. But not wisely: taking taxis, buying at the more expensive supermarket ( and never checking the receipt...)

Indeed if you live wisely there is always a way to gather some surplus.

Yay! :) I will do a video about how to create a surplus soon! :)

The lottery is gambling for people who are not good at math. That's a very apt saying and is very true. Every once in a while when the lottery gets really huge, I'll buy a single ticket for the fun of it. That's it though.

I do not recommend people leave any more money in a bank than they need to pay their monthly bills. The bank will use your money to loan other people money at very high interest rates. You will not get much for doing them that favor either. It just isn't worth it.

Living below your means is the primary thing everyone should focus on from the retiree to the college student. Walk to school and skip the car. Don't eat out all the time and cook your own food. Rent a room in a place with other people, and don't rent your own separate place.

Most people live way beyond their means, and then they are always broke. It really is simple, but few people do it. Usually, people spend as much, if not more, than what they make. That's a disaster. Don't be that person. Then take the extra amount and split it up into many different baskets to hedge against losses.

Never put all your money into one or even a couple baskets. Spread it out to 10 or more. There are lots of ways to spread it out these days too from precious metals, different cryptos, online peer to peer lending, paying bot services like smartsteem, etc.

Yes: I always say to people who think they make a chance of winning at a ( huge ) lotterie: If I had the same chance of getting a terminal desease as winning in this lotterie I would live forever....

Spending beyond your means is only interesting if you are able to get a few million from the bank and lie all the time to them that you will pay them back and they believe you.....

Indeed spreading your risk is a safe way.

You are on the right track @markdeheide .My take on making a sound financial decision that pays you indefinitely is to invest like you said your surplus into projects that ensures your future is secured. The following I consider to be good Investments are steempower, consumer goods and real estate.

Yep, for me it's real estate and indeed if you want a bit more risky, something like steempower :)

You definitely brought it to the point. Additionally, it is not hard nowadays to get into investment. You won't need to pay $1000s for a barely sufficient diversified portfolio or even more to get into real estate investments. It is as simple as creating an ETF investment plan at your favorite broker starting at around $50 per month. Then you can keep it running, gradually creating passive income through distributed dividends.
#financialfreedom #independence #ETF #finance #investment

Great first post, buddy. Very engaging and I agree with this too! Welcome to steemit! Wishing you lots of luck here :-)

Hey Yasmine, thans for commenting! I hope you'll like the content I'm gonna post in the next weeks :)

To video man. Keep up the great work!

hello, @markdeheide I completely subscribe to your idea of getting a surplus and Investing that surplus. But the main problem with people is that most of the people get suplus, and even though they invest the surplus, but knowing where to invest and for how long is a big question for most of the people.
I think for anyone who want to invest his surplus, First he must invest in Himself. Unless you don't know what really you are doing , investing don't make any sense. Many people loose money in investing while many people make fortune.
Investing is like a Game. First learn to play it, then actually Play It.

Yes absolutely, this is a 1 minute video in which I explain the 2 steps completely simplistically, there are many and many hours necessary on how to actually achieve those 2 steps. For me it is just a simply clarification that in essence, it really isn't that complicated. There's only 2 things you can be doing wrong, so it's either the first, the second or both. From this brings focus and clarity in the big maze of 'how to become a millionaire' discussions going on everywhere :)

but yeah thanks so much for commenting! :)

thak you for share .welcome to steemit!

Most Welcome Rashad! :) and thanks! :)

Please help me, I want to (surplus)@markdeheide

  ·  7 years ago Reveal Comment

Thanks Cryptomoney! :)

Hello Guys..... Please I need follows. Can someone Just follow me winks

Thank you.

Hello welcome to steemit and enjoy your time here.

Kindly follow me to get latest updates from me.

Thank you

Great post! thanks for the much needed tips!

You're most welcome! :)

hey @markdeheide its well said the world would be a better place but i have come to realize that people love to be job seekers than job creators people do not want risk they would rather see their dollars on the accounts than seeing it multiply some where actually I have friends that spend more than they even earn and at the end of the day they are stuck in one position for years all they look at is i will get married to a DON some day any how i dont want to be so judgmental but i believe all men love wives that build them in one way or the another not these women of give me always but God is watching

Yes a negative surplus is something that occurs very often as well unfortunately :(

Money in the bank is like clothes in your wardrobe.. Useless. Wear the clothes, invest the money :)

HEUY!

Welkom op steemit

thanks! :) leuk dat je reageert!

Leuke eerste blog maar #introduceyourself is om jezelf voor te stellen. Vond het een goed topic maar ben benieuwd naar jou.

Oh and I am rich for Being healty! And here is just having fun and making surplus !

What do you say.....

Hey Britt, being healthy is most important of course, yet it doesn't hurt to have some passive income coming in, for times and health are good now, yet who knows what the feauture brings, pension age going to 70+ in NL very soon :)

glad to hear you're making a surplus! that's step 1 :)

Takes a little while but My power is going up steady so I and doing the steemit road like its meant to be

Nice! :)

I will make an introductionary post as well :)

Kijk wel uit dat het in introduce is anders hen je kans op de bot em boete

Oke haha ik weet niet wat dat is :)

Oeps beetje snel getypt😬 maar er zijn robots die kijken naar fraude en het meermaals plaatsen van Intro’s mag niet , het kan zijn dat je dan teruggezet wordt in weight

ow øke, nouja dan doe ik het niet meer onder deze tag want dat wil ik niet haha :) thanks!

Thanks for the info

You're most welcome! :) any questions, let me know! :)

Hello dearie..

Welcome to steemit, to interact and get to grow better on steemit, find your niche and be educated on steemit...do well to join us on our Steemschool discord channel using this link https://discord.gg/2F74XX9

Look forward to seeing you there.

Thanks Morahn :)


Welcome to Steemit @markdeheide!

I wish you much success and hope you find Steemit to be as rewarding and informative as I have.

Here are some links you might find useful.
Your stats on SteemNow
Your stats on SteemWorld
Your stats on SteemD
How to use Minnow Booster
How does Steemit actually work?

Introbot is hosted and managed with donations from @byColeman to help make your journey on Steemit be truly rewarding. Your feedback is always welcome so that we may improve this welcome message.
Oh yea, I have upvoted you and followed you. Many blessings from @introbot & @bycoleman

Thanks! :) I will check out these stats!

What is a surplus? Like a profit?

Hey so a surplus means, if you have 'something left over' so this can be anything. It is not necessarily a profit. It can also be that you ordered vegetables and fries and you leave 2 fries and 1 broccoli on your plate, that would then be your surplus.

In this case I'm referring to, you earn some money, pay your bare essentials, how much do you have left :)

I would call a surplus and profit the same thing because I think of profit as an excess of value not just of Rothschild centralized money but also of natural resources and other things too. But I do agree that we are save as much as we can. A penny saved is a penny earned and oatmeal saved is oatmeal exploding in your face haha.

welcome to steemit @markdehide ,I love your post. one big thumb for you.

Thanks Owan! :) I will try and post new content soon!

Congratulations @markdeheide, this post is the third most rewarded post (based on pending payouts) in the last 12 hours written by a Dust account holder (accounts that hold between 0 and 0.01 Mega Vests). The total number of posts by Dust account holders during this period was 9681 and the total pending payments to posts in this category was $976.55. To see the full list of highest paid posts across all accounts categories, click here.

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Welcome to Steemit markdeheide. Let me know if you got any questions about Steem or anything related to it! The official FAQ can be found here and has A LOT of information https://steemit.com/faq.html - Also remember, Steemit is just ONE of the sites built that uses Steem the blockchain. We also have DTube - our very own Youtube, DSound for Soundcloud and Steepshot if you prefer Instagram like experience. I'd also like to mention ChainBB - forums, Busy - Steemit with more modern look basically, DMania for memes and Dlive for streaming just like in Twitch! You can also earn Steem by gaming now! Search for Steemgar if that's more your thing. Welcome to the blockchain! :)

Welcome to the club, Mark - I'm currently reading "The Richest Man of Babylon" and your post reminds me alot of the content. Thanks!

Hallo,
welkom hier op steemit!

weet je dat er een aantal actieve "Nedersteemers" zijn die vooral posten met de tag #alldutch voor Nederlandstalige posts en # alldutchenglish voor Engelstalige posts.

Verder is er een Discord kanaal waar Nedersteemers ( dus Nederlandstaligen) met elkaar communiceren.

succes hier,

grt, @vjbasil

ow cool dat wist ik niet :)

"An investment in knowledge pays the best dividends. " -
Benjamin Franklin
Welcome to Steemit community :) ***** I am a babe Steemit too :) Welcome, thanks for sharing this educative post.

Wish you the best of luck and succes.11039154_10206389970614850_5599569763559782609_n.jpg

upvote & follow :)

thanks Supernova! :)

Your welcome :) Hope you have a lovely day full of happiness and harmony!426095_3351218026007_229606719_n.jpg

It is so difficult to save and put back for most people. People get confused their needs vs their wants or desires. But saving is a learned skill. It takes practice to deal with emergencies that take all of your savings. Great post.

Well it is really hard to save, for the sake of saving, just save for a rainy day. However, when you start saving to invest, it actually becomes way more appealing in my opinion :) Looking forward to seeing you around! :)

Hi @markdeheide you couldn't be more right.

From young I've this principle ingrained in my mind - "its not how much you earn, its how much you save". Later when in the workforce, it become "how am I able to make money work for me?". Hence I gradually became interested in value investing.

People often don't understand and/or underestimate the power of compounding. So I like to post this question to them.

Suppose you have 2 options:
(1) $1,000,000 (ie. 1 million dollars) today
(2) $0.01 today but compounded at rate of x2 everyday for a month.

Looking forward to your next post already. Cheers!

Hey, that's from the compound effect right? :) yes compounding can go very nuts if you know how to do it! :) by the way if you do that x2 every day of the month I think you end up on around $3M if I'm not mistaken' so please option 2 for me :)

Simple message but true. Welcome to the community! :)

That's what I was going for! :) it's time to start making things simple again! :)

Congratulations @markdeheide!
Your post was mentioned in the Steemit Hit Parade for newcomers in the following categories:

  • Comments - Ranked 4 with 77 comments
  • Pending payout - Ranked 8 with $ 44,09

I also upvoted your post to increase its reward
If you like my work to promote newcomers and give them more visibility on Steemit, feel free to vote for my witness! You can do it here or use SteemConnect

you can join our discord server to promote your post https://discord.gg/BPFWudT
just join and promote

Nice post and true conclusion, thanks.

Thanks Alex! :) I will be posting more soon! :)

Ahhhh... such a hard thing to hear for people who haven't started investing yet. I feel like people don't see the importance until it is too late.. This is a great post, keep them coming!

Thanks Katrinalebar! :) Today there will be a new post!

Simple and concise yet most people lack the discipline to reinvest and reinvest and reinvest to grow that surplus, nice article/vlog.

Thanks @pittsburghhodlr :) yes this is very true. Also, people do not know what to invest in, or how to increase their surplus! :)

Es bueno ver como día a día crece nuestra comunidad, Saludos desde Venezuela.

@ydavgonzalez Si me gusto Steemit mucho! :)

Pretty nicely summed up, @markdeheide!
Lots of people are on steemit in order to create that surplus. But then many don't re-invest it. I've recently bought a piece of land from the Steem I've earned so far, so it seems I've fulfilled both of the two strategies :-)

Enjoy your steemy ride!
I'll follow your blog for more

Thanks @surfermarly what are you planning to do with the piece of land if I may be so blunt, how will you make sure you get a good return on that investment? :) Many more posts will follow shortly, with a new post in a few hours today! :)

You're welcome!
Well the land belongs to one of the best areas on my island. Tourism is growing strongly every year, so I'm pretty sure in a couple of years its value will be doubled :-)
Much success for your future postings

That’s great! Now I have got a way to make myself and the people around me rich

Yes, it is really easy actually, it just takes tremendous patience and resilience. It's not a way to get rich quick, but it is the only way to ever create financial freedom. So start today! :)

Good first post! Haha, got pretty big fast!

Thanks @ngm2219 :)