08 Feb

Why Most People End Up Working ALL Their Lives…

Today’s post is a very important one. It’s something that I started to do a few years ago and it’s something that has enabled me to semi-retire now – in my thirties!
And most people just don’t get it… or when they do “get it” it’s too late…
What I’m talking about here is “investment”.
I alluded to this in a previous post, but I wanted to add more detail today because I had a lot of emails about it and people wanted more details.
So, here we go.
Firstly, investment can be in many forms. It can be advertising, it can be paying for traffic. It can be offline as well – for example stocks and shares or property.
And today I want to talk about how you can get started. And why you need to start doing it asap…
What most people do is they spend everything they have coming in. I see it all the time. A constant battle to keep up with the Jones’s… and it’s marketers all over the world that are to blame for doing too good a job!!
Let’s say you earn £25,000 pa. What most people will do is they buy the very best car they can afford for the money they have coming in and they stretch to the biggest and best house they can afford to rent or to buy…
At £50k it’s a better car and a bigger house – there is always something dangled in front of you to match your budget.
It’s only natural to want the very best out of life, but so few people realise that this is actually hurting them in the long run!
You see, everything they have coming in has gone out just as fast…
Gone out to pay the mortgage, the rent, the car payments, the holiday they MUST HAVE!
And there’s no money to play with, no surplus cash to invest, or even to start to build a business with.
Sound familiar?
It probably will… I know that I made this mistake.
And even worse, when I was employed, I used credit cards to top up my life as well… so on the surface it seemed that I was doing really well. i.e. nice flat, nice car, but in reality I was going nowhere.
In fact, I was going backwards… because the car was depreciating and the debt was growing!!…
Sound familiar?
It might do, but not everyone goes this far.
I think I might have taken it to the extreme to be honest!! It was only when I couldn’t get any more credit cards or borrow any more money that I realised there was a problem!!
Lesson learned I can tell you…
And this is why I’m now both super cautious and super aggressive when it comes to money and that phrase you really need to understand:
Making YOUR money work for you.
Because this is where it gets exciting. This is where it gets easy and this is where it gets more and more fun.
Because with my money working for me, I do less and less each month and I make more and more.
In fact, I now make money because I have money… so that rumour that we’ve all heard is very true!!
And just to give you an example of this in action, let’s say I make £20k online this month (through my online business), I can then take that £20k and through one of the investment vehicles we have I can make a guaranteed return of £25k in 10 weeks time. i.e. £5k profit just because I have £20k in the first place.
Now, if I do this once per month that’s £5k per month, every month and approx £60k pa.
£60,000 each year, just because I’m putting my money to work. And that’s profit… I still have the original investment back in my account after the 10 weeks!!
And at this figure, why not do another project every other month or even another EVERY month and that brings the income from just this venture up to £120k pa.
Now that’s what I call making your money work for you!!
And another example of this working is my US property portfolio. If you don’t already know, I own 9 properties in the US, which I bought outright for cash back in 2010.
These properties pay me each and every month, so I can use this money to live off… or… you guessed it… I can invest this money into something else. Maybe another property!
The important point here is that it’s possible to make money with the money you are making, but ONLY if you put some aside each week, each month or even each year to “play with”… It’s just not possible to make your money work for you otherwise.
When I started online, this is exactly what I did. I made a commitment to pay for traffic each and every month and this commitment brought me a steady flow of traffic to my websites.
And sometimes it takes a little sacrifice…
It usually means that you can’t drive the very best car that you can actually afford, or maybe you don’t go for the bigger house just yet…
But if you put it off you’ll probably jump a few steps on the ladder anyway, so it’s worth the wait.
In fact, I waited many years before I could justify my new Aston Martin. Note the word justify, not afford. I could have bought one years ago, but I felt that I didn’t have enough money-makers in place to justify it… so I kept investment my money and getting it to work for me…
In fact, I cancelled an order for a Ferrari F430 back in 2010 and I started to invest in US property instead… and what a great decision that was. These properties have not only doubled in value already, but they pay me every month as well!
We also live in a pretty modest house – a 5 bedroom house in the country that is actually quite understated… but again… we will jump 2 or 3 rungs when we can justify this with more automated money-makers… where we put our money to work for us!
Besides, we already own 28 properties around the world, because we haven’t spent all of our money on the very best house and the very best cars that we could afford!!
I hope by now this is making sense or making more sense and you’re getting some ideas about maybe sacrificing something that you really don’t need, or even cancelling that order for your new car…
Either way, this post has been written from personal experience. Experience that I will certainly be passing on to close family, friends, clients and students whenever I can.
I wasted so much money before I realised all this.
After all, it is YOUR money – even if it’s on a credit card or car finance. You are the one that has to pay it back. It does exist and it is real…
Make it work for you, rather than making it hurt you.
And, in short, don’t try and keep up with the Jones’s. They have no clue!
The Jones’s will be struggling to make car payments, trying to keep up with credit card bills and living in the very best house they can possibly afford…
Just one bad month or one unexpected expense and they are in trouble.
Set your sights on big things and the very best things, but take your time and plan ahead… and you’ll get there.

Share

One Response to “Why Most People End Up Working ALL Their Lives…”

  1. 1
    Nigel James Says:

    Another excellent post Chris, thank you. And by excellent, I mean totally inspiring to people like me.
    As one of your students, I’m at the very bottom rung of the ladder, but I realised a while ago, that I wanted to follow someone who was walking the walk.
    You have helped me no end in our short time together, and for that, I am very grateful. Hopefully the investments I have made, in myself, and in my businesses, will provide the fruit you have talked about above.
    May we long continue to work together.
    Sincerely
    Nigel.

Leave a Reply

   Copyright © 2012 · All Rights Reserved · Chris Cobb