Alexander Evstegneev is an entrepreneur, investor and creator of the project The ABC Of Money. He has over 20 years of stock market experience. He is one of the best financial experts according to the largest management company Alfa Capital. And, as you can guess it, this man understands money. What advice does Alexander give?
We know that today for many people the question «How can I improve my life?» is a synonymous with the question «How to make money.» The question is pressing for most people because money is never enough. Many people want to change something but they do not know how. People rarely understand that, first of all, they should start from themselves.
Successful people say that you need to set your heart on something and to stir up a desire inside yourself. It will be the driving force and it will lead you to a goal.
This is called self-motivation. It is often enough to read books of well-known people who have got a financial freedom, Robert Kiyosaki is a good example, to study the biographies of successful family members or celebrities. So there is a movement towards the desired financial independence.
After making the first, and sometimes the most difficult step, a person begins to understand better in which direction to move. On the road to success, if it is chosen correctly, you will find necessary information and meet helpful people and much more. The main thing, which will happen, is a real transformation of a person. This internal change will lead to changes in the external life, its conditions will improve, and there will be new opportunities, which you have been waiting for.
Of course, you can develop this way within a few days, you need a long time to study yourself and your direction. Probably, you will need to pass through thorns and overcome obstacles. Just this way you have a real chance to achieve success in a certain sphere.
Let’s imagine: you have accumulated quite a sizeable amount of money (for every person it is different). Of course, you want it to increase or to bring a profit.
Let’s ask ourselves: Where can you invest money today?
And now, to determine the method of investment, it is necessary to analyze the situation and to answer a few questions.
What does this amount of money mean to you? How much money can you save without sacrificing the quality of your everyday life?
How often do you get money? For example, once a month, once a week …
Are they spare? Are you ready to part with your money in case of unforeseen risks?
Will you need a certain amount of money within 5-10 years?
Do you have a «safety cushion» reserve, which is enough for several years of comfortable life?
If you answered yes to all these questions, then you are ready to start risky but profitable types of investment.
If you answered «no» choose low risky investments- bonds, deposits in different banks.
Now let’s talk about how to take risks rationally.
There are stock exchanges, such as Forex, for this case. But it is better to rely on professionals and to find someone who can manage money in practice. You just have to give some money and he/she will start working with it.
Part of the money you can invest in a business, you can create a franchise, for example.
You can use a risk capital to develop your own business.
You can also allocate money for training yourself and staff in order to learn how to earn even more. If you do not invest in employees, they will go to a more comfortable place.
Invest in property, investment in foreign real estate is even better. There are also commercial real estate unit investment funds, which rent the premises for restaurants.
Financial independence is an important part of personal development. You must learn to rely on your own resources. Jim Rohn says: «If you depend on your company to take care of your retirement, your future income will be divided by five. Take care of it yourself, and you can multiply your future income by five.»
When it comes to receiving money, the condition is the same: self-development throughout life.
Working for a living, you need to control your actions constantly asking the question «Who do I become?» instead of the question «What do I get?» Personal growth and income are interrelated. Changes in yourself have a direct impact on what you get.
The level of income is proportional to the level of personal development
Income level rarely exceeds the level of personal development. Sometimes income suddenly increases, but if you do not learn to cope with new responsibilities, it quickly decreases to the previous level.
If someone gives you a million dollars, you should try to become a true millionaire. One smart and wealthy man once said: » If we divided all the money in the world equally, in a short time the rich would be rich again, and the poor would be poor.»
It is not easy to keep something that has not been obtained through personal development.
Obviously, you should focus on how to change and become better. If you stay where you are, you will always have the same situation as now.
Warren Buffett’s Rules
Remember the six golden rules from Warren Buffett, which will help you to control the relationship with money:
1) avoid using credit cards;
2) invest only in yourself, remember that money did not create a human being, a human being is the one who created money;
3) live as easy as possible;
4) do not follow advice of others; just listen to them and act the way, which is right in your opinion, even if it goes against everything that you were recommend;
5) do not chase brands, wear comfortable clothes;
6) manage your life yourself because it is only yours!
Practice
If you are just planning to correct the situation with your money, I recommend you to start with a simple rule: open a bank account and put 10% of your income in it. It is important to do it consistently. Your goal is not to save, but to keep your inner peace thanks to the money «safety cushion».
In general, your emergency fund should help you to live without income for at least 3 months.