Why?

This question I believe is one of the most important question in our lives. Next one is “How?’’, but this is a subject for another post.

So, going back to our question ‘’Why?”.

The reason I decided to start this blog, was indeed, because I was fed up with my current life. Low paid job, were causing my constant frustration, increasing my anger and that had a negative impact on my health and my family. Every time when I was waking up around 4.40am to start my morning shift at 6, I was asking myself “What went wrong in my life? Why I cannot afford for so many basic things? Why am I not rich? Why there is so many people that were able to build their own businesses and build capital to invest and have a fulfilled life?”

One day something broke in me and I said to myself “Enough! Now or never. I need to do something with my life. I have to change mu current lifestyle. I am gonna be rich (financial independent) no matter what’’ I didn’t know how to do it yet. Maybe you feel the same.

After watched hundreds videos, read tones of articles about personal finance and saving, I came across on one book that changed my whole point of view.

That book is “Rich dad, poor dad” by Robert Kiyosaki. Author is using probably a fictional story to familiarize you with the subject of finance, what the assets and liabilities really are, what questions you need to ask yourself to unlock your inner potential, and so on. The book is written with very easy language, understandable for literally everybody. Even the biggest financial newbie can easily grasp how to manage its own money and start own journey to become financially independent. That book was just a beginning . It helped me to open my mind and change the way of thinking about money and how to organize my salary to start save and build capital to use it after for investing. So I really recommend it for you to read.

This is absolutely ‘’MUST READ’’ position onto your bookshelf!!!

Whole idea of becoming a wealthy person is super simple and is contained in one equation:

INCOME – EXPENSES = SAVINGS

Savings are great because they increase the financial security of our families and help us fulfill our passion and dreams. In addition, by multiplying them, we generate additional income, which creates a positive feedback loop: more savings means more income, more income means even more savings, etc. This is how we get richer.

When we spend more than we earn, our savings are negative and we get debts. Getting into debt is very unreasonable, because the repayments (including costs and interest) increases our expenses. Thus, the feedback is working to our disadvantage. For this reason, we get richer very slowly, we stand still, or even more often - we just get poorer.

This formula is as reliable as the law of gravity. To get rich consistently, you just need to:

• systematically increase earnings,
• keep expenses under control,
• wisely multiply your savings,
• avoid consumer credit and loans.

Banal? Perhaps, but although this principle is as old as money itself, we completely forget about it in our daily rush. Practical implementation requires changing a few habits, and we don't like changes… We prefer to drift through our lives without paying attention to finances. Effect? According to UK’s Office for National Statistics in January 2020 the public sector debt is over 1.95 trillion British pounds. This is equal to 100% of gross domestic product (GDP)! The worst financial situation since March 1963!!!

Can you even imagine that?! Maybe in your country is the same or even worse.

Isn’t it something that should make you start to think about how you master your money???

And yet everyone knows the above equation. So what if we know them, if we have no idea what it's really about?
How is it with you? What is your financial situation? How many months will you live from your saved savings when you lose your source of income? Do you save money or do you live "paycheck to paycheck" trying to make ends meet?

Regardless of whether you are an employee with a modest salary or a CEO with 100,000 GBP per month, if you only use the money you earn to pay for debts and to pay off your loans - you are still poor. What's more - if you don't stop for a moment and think about it, you'll still be poor to the future.

Albert Einstein is the author of an interesting thought:

"Keeping doing the same things and expecting different results is the definition of madness."

Think about it…

On my blog, I write about things that will help you improve your financial condition. However, you will have to change a few things in your life.

This will be your and my journey. I am really glad to have you here. I hope you stay for longer and get useful bunch of knowledge, hacks and tips.

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Links:
“Rich dad, poor dad” R. Kiyosaki : https://amzn.to/34c3HKa
"Rich Dad's Cashflow Quadrant: Guide to Financial Freedom'' R. Kiyosaki : https://amzn.to/2GwNwyF