You have heard about the principle to spend less than you earn and invest the difference as a steppingstone to wealth, but what if your outflow is larger than your inflow?
We grow up not learning much about finical advice in school and in general are rather conditioned to behave average versus outstanding.
The most important focus point I can provide you with, is that wealth creation isn’t intuitive but rather counter intuitive in nature, and as such discipline is necessary to follow principle based rules to create the desired riches.
To achieve ones goal the principle of “mind creates matter “is imperative so ones focus needs to be on ones desired outcome and can only be achieved if consistently revisited, measured, evaluated and adjusted to create the valuable outcome.
So while mainstream behavior would filling out elaborate excel sheets of detailed expenses which focuses in majority on the outflow, the true principle is to consistently increase ones inflow with the goal of being able to save 40% of one’s monthly income stream and to reinvest this capital.
Why 40%-well that’s what the top 1% earners do and they own the majority of all the wealth, so they must be doing something right.
Another misconception is the use of proper tools.
While common knowledge calls debt and Credit Cards to be the root of all evil, nothing could be further from the truth.
Debt is consistently used by large companies as a sensible expansion tool for growth if used wisely.
Credit cards provide a free detailed measurement tool of your outflow and can also create up to 3% of cash back returns which at times is more than your savings accounts. They also provide security and ease of use. They do require discipline in their application.
In short don’t listen to street wisdom but rather follow principles as ultimate truths to reach your goals and you don’t need to wait 30 years for compound interest to kick in or penny pinch, but rather measure detailed income flow and consistently focus on how to increase these multiple sources of new money.
Grow your monthly inflow being aware that anything that is alive is consistently changing and expanding and never lose focus on how to reach your goal of 40% savings from your income and you will join that one percent of truly wealthy people even if this means temporary to be a bit more frugal while exploiting massive growth opportunities with your sleeves up.
All published information represents the opinion and analysis of Mr Korbinian Koller & his partners, based on data available to him, at the time of writing. Mr. Koller’s opinions are his own and are not a recommendation or an offer to buy or sell securities. Mr. Koller is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations. As trading and investing in any financial markets may involve serious risk of loss, Mr. Koller recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.
Although a qualified and experienced stock market analyst, Korbinian Koller is not a Registered Securities Advisor. Therefore Mr. Koller’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction. Past results are not necessarily indicative of future results. The passing on and reproduction of this report, analysis or information within the membership area is only legal with a written permission of the author.
RISK DISCLAIMER: All forms of trading carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Please ensure your chosen method matches your investment objectives, familiarize yourself with the risks involved and if necessary seek independent advice.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Trading financial instruments of any kind including options, futures and securities have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the options, futures and stock markets. Don't trade with money you can't afford to lose.
NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience and risk appetite. Do not invest money you cannot afford to lose.
EARNINGS DISCLAIMER: EVERY EFFORT HAS BEEN MADE TO ACCURATELY REPRESENT THIS PRODUCT AND ITS POTENTIAL. THERE IS NO GUARANTEE THAT YOU WILL EARN ANY MONEY USING THE TECHNIQUES, IDEAS OR PRODUCTS PRESENTED. EXAMPLES PRESENTED ARE NOT TO BE INTERPRETED AS A PROMISE OR GUARANTEE OF EARNINGS.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAN ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All information presented or any product purchased from this website is for educational and research purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. This presentation is neither a solicitation nor an offer to Buy/Sell options, futures stocks or securities. No representation is being made that any information you receive will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results. Please use common sense. Get the advice of a competent financial advisor before investing your money in any financial instrument.