I have read a review of the book Grow Rich Mindset, which zeroes in on saving and investing. Just like businesses are gauged by their financial standing, our personal finances also require accountability. We should balance income vs. expenditure and ensure we have the future secured, especially in these times of economic uncertainty. An example is maintaining assets rather than liabilities. ALSO READ: Personal Finance: Financial planning made easy Assets are things you own that have value, such as investments, savings, or property. Liabilities are debts that you owe, such as loans, mortgages, or credit cards. Your net worth is the difference between your assets and liabilities. Having more assets than liabilities means you have a positive net worth and can build wealth. Having more liabilities than assets means that you have a negative net worth and face financial stress. ALSO READ: Money management tips to improve your finances While access to loans gives one an advantage in getting properties, long term loans should be carefully considered due to their accumulating interest rates and should be paid off when the chance occurs so as to secure properties at less cost and avoid losing them in turbulent times. Where possible, purchase your assets with short-term loans and cash to get returns quickly. Real estate is safe for long-term loans as its appreciation is almost guaranteed while other properties like vehicles lose value with time. Investing in stocks and profitable shares, starting a small business, and saving to secure your future are all avenues of getting rich. A biblical parable is told of a master entrusting 'talents' to his servants before setting out on a long journey. One servant receives five talents, another receives three, and the final is granted just one talent. Upon returning home, the master learns that the first and second servants used their talents to significantly increase the value of the property they were granted. They are rewarded accordingly. The third servant, however, buried his talent and did not enjoy the gains of his predecessor. When called on to account for his behavior, he claims that fear prevented him from embracing his talent. The master reprimands the third servant for being lazy and casts him out. Mathew 25:14-30. Our time, money, connections, and talent, are all resources for wealth creation and should be used wisely. We should take risks and overcome the fear of loss mentality that paralyzed the third servant in the parable from taking any action and eventually led to the total loss of his talents. Entrepreneurs are constantly cracking business opportunities in their minds. Every meeting brings a new connection or business idea. Time is money to them because they are constantly trying to return on their investments or create a new revenue stream. They also have burnt their fingers enough to know which ventures to go for and which ones to avoid. But they also know that not taking a risk sometimes is a bigger risk and they will at times go for the opportunities which others fear hence gaining the first mover advantage which gives them leeway over late entrants e.g., gaining customer loyalty, full pocket share and brand recognition. However, they may also have to invest more than their competitors who will avoid some mistakes and costs experienced by their predecessor. According to the Grow Rich Mindset, book’s lesson 7, it is advised to commit to lifelong learning in the realm of personal finance, stay updated on market trends, investment strategies and tax laws to make informed decisions that support your financial goals. Finance basics are required to manage your money but more so to understand the economy and policies that may affect your investment e.g., the rules of cryptocurrency which is taking the Internet by a storm and the safety of online investment opportunities which are growing by the day. You should invest in learning about new schemes and relevant policies before throwing your hard-earned money to enticing deals that are too good to be true. In the past, some pyramid schemes recruited members but did not live to pay off the quick rewards they had committed to them. Governments have since tightened policies to discourage such schemes. In conclusion, the ‘grow rich’ mindsets are the ones that are shrewd with the opportunities they get to improve their finances, keep a sound budget, and manage money in an accountable manner, always investing for growth and economic sustainability of themselves and those around them. An entrepreneur seeks to enhance others’ quality of life through the solutions they provide, and truly rich people are those that give back to the society e.g., the top philanthropists also feature among the richest people in the world.
