This article is a guest post sent in by an older citizen. This is not me. I am not rich yet. – Yomi
Full-time employees can become rich without ever taking on entrepreneurship or giving up their dreams. I can say this because I am one of those who have. I will show you how in this article.
There is a popular refrain going round these days that says a salary earner or employee cannot become rich. The sentiment is expressed in many ways. One of them is the idea that a salary is what a person collects to give up their dreams.
Contrary to these assertions, there are many employees all over the world who have become rich without ever taking on entrepreneurship. And there are employees who have not had to give up their dreams just to collect a salary. On the contrary, they have lived out their dreams to the fullest.
I can say this because I am one of them and I have friends and colleagues like myself too. I am in my 70s and never took up entrepreneurship in all my life. I have been an employee all my life and now in retirement.
Now, if you are an employee and want to get rich, as well as live your dreams while in paid employment, you need to shut your ears to these fallacious narratives that some people are pushing out there and listen to what I have to say here. This is a no bull-shit article. Everything I share here is how I have done it.
First of all, nothing I have to share is groundbreaking. It has all been in your face before now and you probably never paid attention to it. All I am going to do is present it to you in an easy-to-understand way. I hope you are ready for it.
The Step One: Save
You may have been told that savings is the way to get rich. I assure you that is a lie. No amount of savings on your salary will result in riches. Interest rates on savings accounts are often too low for savings to produce the kind of returns that you need.
Saving up your money is good – and you should do it. You should do it because it is a tool in your path to riches. It is not the secret. It is not the key. But it is an important part of the equation. So, I say this to you: start saving NOW.
Why should you save? And how should you save? You should save because your salary does not comes in amounts that are huge enough for you to do anything with it. You have monthly bills and expenses to meet. You will often have very little left each month. I know. I have been there. It is the reality of the salary earner. But here is the thing: you have to save! Save a small monthly sum for two or three months. In the next step, I shall tell you what to do with this money that you are saving.
Step Two: Start Investing
Remember that I told you that saving is only a tool? Investing is the real deal. Let me tell you a secret you may not know: when a man is quoted as being worth $10 billion, it does not mean that he has that amount of money in cash somewhere or in his bank accounts. Most of it is in stocks and other investments. Get that point?
Once you understand this, you can see how investments is your pathway to riches. Say this to yourself, “Investments is my gateway to riches”. The sure way to become rich as a salary earner is to invest.
So, let’s walk through this. If your salary is really small, anytime you have saved up to N5,000, invest it. Stocks and Government bonds are a good way to go about this. Mutual Funds are another good way to go as well.
The beauty of investments is that they appreciate in value over time. Well, good ones do. You can buy N30,000 worth of stocks in a company this year and it will be worth N3m in ten years’ time without you adding a kobo to it. But you have to start and you have to develop the ability to identify good investment options. And you have to stick to the plan.
PS: If you are smart, you can already tell that you can skip savings if you earn a salary that lets you put as small as N5,000 and above in investments each month.
While I did not have the assistance of real-time information in my time, modern technology has made it possible to monitor your investments on a daily basis. Many fund managers now have online dashboards that you can login to and see how your investments are doing. Back in my time, I had to call up my stockbroker and ask questions, then decide what to buy or sell at any point in time. Today, you have direct access now via technology.
If you also need more information on investment opportunities available, Google is your friend. If you need to know how stocks are doing, you can do so online. The opportunities are much better than they were back then.
You have no excuses today. Make up your mind to start investing today.
Note: If you will not act on this step, you can forget about any prospects of ever becoming rich in a legal manner. Without investments, you have no hope of becoming rich from your work.
Step Three: Diversify
Once you have taken your first steps in investing, you will need to start diversifying. Put money in different kinds of investments. Invest in different industries. Spread your eggs out in different baskets, then monitor them and watch them grow over time.
Step Four: See It Through
Investing is not a one-time thing that you do. You have to keep at it. Ensure that a part of your income keeps going into building your net worth and your future. Keep learning about new opportunities.
You may not be an entrepreneur, but as you regularly invest from your salary, you make the entrepreneur work for you. Entrepreneurs think they are the smart ones. The joke is on them. In reality, they work for the investor: you.
Every thing I have shared in this article is how I built my wealth. As a young man in my 20s, I started out on a small salary and began to invest from it. I loved my job and kept doing it while growing my investment portfolio. I have built houses, wedded off my children and now live a comfortable life in my retirement all from my investments. If you start acting today, there is no limit to what you can achieve, especially with what the internet now makes possible.