Who remembers the Aesop’s fable of The Ant and The Grasshopper? My short version: The ant worked hard all spring and summer, built his house, and stored supplies for the long, cold winter. Meanwhile the grasshopper played and sang and made fun of the ant for working so hard. When winter came the ant was warm and had food and shelter but the grasshopper did not. One moral is: Be prepared.
This is a good motto for accumulating wealth in any economy without changing jobs. Everything is dynamic. Everything is cyclical. Everything ebbs and flows like the tides. Studies have shown how the economy is dynamic, cyclical, and ebbs and flows. By being prepared, industrious, and tenacious around money (the ant) instead of waiting to win the lottery (the grasshopper) financial stability and eventually financial independence can be achieved.
How is that possible without changing jobs, getting promoted, changing industries? Determine your long term goal, make it a priority, and then write out and stick to a plan to achieve that goal. By having a plan and sticking to it you will be prepared for whatever cyclical changes occur; you will have accumulated some wealth, a nest egg, that you can continue to build and grow–one that you can bank on. There might be chaos all around you but you–you stick to the plan. Here are five tips to help you set up your plan to accumulate wealth–without changing jobs or winning the lottery!
- Stop spending money for anything except the minimum necessities. Part of your plan should include writing everything you spend money on and eliminating all the extraneous expenses. Learn to live on less and definitely do not live on more than your income.
- Start saving–consistently. Statistics show that Americans are saving more money these days and paying down their debt but that was not the case in 2008. And we can still be doing a better job of it. Start early and start saving…like the ant not the grasshopper. Save 10% of whatever you make no matter what. Get into the habit. If you can only save 10% of a dollar–do that! Use what you have: Take advantage of any 401K matches, any stock purchases, and any automatic savings.
- Use what is available to minimize your expenses. Cut coupons; get your books from the library, buy at second hand stores, pay down your debt; pay extra on your mortgage; sell things you don’t need or want.
- Be a knowledgable investor. As soon as you can start finding out how to invest your money. Don’t just jump in without knowing what you are getting into and what the results might be. Take a course and read books, magazine articles, and newsletters.
- Develop and increase passive income. Use all the media including social media. Learn about making money on Ebay, Amazon, or develop some intellectual property and go onto Click Bank. Make sure you learn everything you can about any new venture before you begin.