In this part of financial independence, we’re going to be talking about something different. But before saying that. If you haven’t read any of the previous parts. Go back and check out all the parts that I have already published on the block. You will be benefited. If you want to make more money, you need to understand what I am discussing over here.
So, as I was saying.
In this part, we’re going to talk about why most of the people are falling behind in comparison with the rich people. Why rich people are getting richer, while the poor are getting poorer.
I was talking about this with one of my customers at my restaurant. So, we were talking about one of the previous chapters that I have published on my blog. How the 99% is behind the 1% that is going in the first place.
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Part 1 – make more money
We were talking about how investment can change people’s life. Investment is important. And also thinking about investing before actually doing it is more important. The thing is that, people don’t usually think much. All they see is an opportunity, and the potential of that opportunity. And then, they start to think about investing into it. But before actually investing, people do not usually think about the other circumstances. make more money
For first instance, I told you about thinking about investing into something regarding whether or not you can afford it. You should never invest into something by borrowing money from someone. That will increase your risk factors. Just like this, me and that customer had a long conversation.
The person that I was talking about, works with farming equipment. He owns a lot of farming equipment, rents it out, makes money. He told me that at first, he needed to invest near about $1,000,000. Now, I know that $1,000,000 is a really large amount of. But he tried his best to increase his credit score, financial status to manage a loan from the bank. And when he did that. He purchased some really good quality equipment that will have a higher level of durability.
He invested $1,000,000 in the machines. And every month, he used to get $80,000 back. Investment is not something that will start giving you profit right the next day. You need to wait will stop wait and let it flourish. In order to make it profitable and also capable of flowing the cash in your wallet.
He kept on making money from the machines. It is because the place that he is living in. That area has a lot of agriculture going on. So, people are going to take a lot of machine in rent.
Part 2 – make more money
On the other hand, why poor people are getting poorer. It is because they are always worrying about taking care of the expenses as a regular monthly basis. And also, taking care of all the bills and payments that they need to do. After they have some money in their hands, they need a lot of payments to do. This makes a really hard situation for the poor and the middle-class people. But The thing is that, poor people are also spending in things that they don’t actually need. Like, people might have a used kind of dirty backpack.
But whenever they have money in their hands. They intend to purchase a new one. That is only the cause of the attempt to look good in front of the society. But, is the person, instead, if he thought about saving that money. And later on, adding that money with something else. Then invest it into something. That would be much more profitable for him.
Even for us, that 1% of the population that I told you about. It is really high. make more money
At one point of our conversation. We talked about what is more important. And he told me the exact same thing that I already told you in this blog. And that is that “money is not the most important thing”.
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Yes, it is true that you need money to invest into something. But that is not the most important thing. The most important thing is the experience. The knowledge and the information that you manage together inside your head. That is the most important part.
There are a lot of rich kids around you. And they have a lot of money that they got from their dads. But, are they being successful in terms of creating something of their own? Are they also being able to be millionaires by themselves?
In most of the cases, the answer is no.
Knowledge and information, both of these combined, opens the opportunity of doing infinite things in front of you.
For me, at the level that I am currently standing right now. It might not be so easy together $1,000,000 or $5,000,000 to invest into something. But I can create a couple of chains. Chains that will give me more money. And within a few years, it is possible for me to actually save up to $1,000,000 first up even if it’s not the same amount. I can at least go as much near as I can.
When I asked him about investing more. He told me that there is no other way to invest. No money left to invest more. Then I told him about taking a loan from the bank. After that, his reply made a lot of information clear in my head.
Part 4 – make more money
He told me that, there is absolutely no need of doing that. Because, the area that his business had already covered, that is the best that they can do. They have already covered all the area that they can actually manage to conduct their business on. Which basically indicates to the fact that I have told you in a previous part. That is, only invest and get into something that you can afford to manage. Even if you have chance to take more and more money from the opportunity that you have.
Don’t do it. Before doing anything, you need to make sure that you are capable of doing it. And also, you actually need to do it. If you are doing and making things work just to make money even when you don’t need it, you will never have the satisfaction or the peace in your life that you seek.
99% of the people are living from paycheck to paycheck. It is because the amount of necessity that they feel. I’m not telling that the necessity, the situation or the circumstances are in their favor. But people are most likely not to be patient to save $500. They tend to spend the $500 on something that they really need post up they do not actually think that “what would happen if I didn’t have this $500 in my hand?”
If you don’t save, be patient, and make yourself capable of investing more. That will take you nowhere. You will be only in the circle of making money and spending it. Not going the way to the upper level.
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We need to think how we can expand. We need to think about how we can make our product reach more people. I told you about using the Internet and social media marketing in the last part. We need to utilize the unlimited resource that we have in front of us. Social media is not just for hanging out. It can also be one of the greatest sources of audience for your business. You only need to study and understand it.
I’m not writing this part of the series too teach you different stuff. The main purpose of this part is to get along with the readers of this blog on a personal tone. Think of this part as a friendly hangout between you and me.
I moved from China to Canada. And since 2003, I have been running several businesses and making my growth one after another. Back in school, I used to always get in trouble and didn’t do so well. In that time, I didn’t understand. But now, I understand the value of education. Because, after I got the chance, I got myself admitted into high school. And learning made me a totally different person.
Part 6 – make more money
When we first came to Canada, we were having so much trouble in terms of debt and payment of bills. We had a lot of things to pay for. For our foods, for our school, for our homes and so many things. That time was really hard. So, we had to save as much money as we can stop and also pay for all the things. We could manage to save really tiny amounts of money.
When I was doing small jobs, I realized that working for someone else gives you a limited amount of income. That is when I started to think outside of the box. I started to think about getting money from the money that I have in my hand. I used that little amount of money that I have. And I started buying stuffs at a cheap rate from China. And started importing them to Canada. Cause that has an opportunity to give me even the smallest amount of profit. make more money
Understood that people in Canada loved a lot of sports. So I started importing products related to those sports from China. And I could sell those products for a really high margin. For example, Basketball Jersey is Canada is worth over $100. And I get really good quality Basketball Jersey from China in the amount of less than $20 or $15.
So, it’s like 5 times or six times more money that I’m making from what I’m investing. Not all of the products are being successful. So, I started learning more and more about the market. That is when I realized that every single area has a specific need in a specific time of the year. I started analyzing the market and took my preparations. Like, for example. If I know that there is a basketball tournament coming in March. And it is January now. So, I will start stockpiling some basketball merchandise from now. Because, I will get basketball merchandises in this time at a cheaper rate. But only within two or three months, the season will be fully on. And in that season, I will be able to sell the merchandise in a much higher rate of profit.
I told you a lot of things about thinking before investing. But The thing is that, you need to understand the margin between thinking and overthinking. If you’re thinking that you were bringing 10 products and more than six or seven of them are failing. Then you are thinking about it in the wrong way.
Instead, think about this as you are making profits in three products. So even if you’re making loss in seven products, that loss will be equalized by the profit that you were making from the other three products. When you first start a business, your first target should not to be making profit. Your first target should be fulfilling the amount of investment that you have given in.
When you are learning from your failures. That is the best source of knowledge for you. Things are going to hurt you. That is bound to happen. Because that is just the way that the world is. But what matters is that, how well you are able to understand your mistakes. And then, making a full recovery from that loss.
You have to keep on trying. Even if you have nobody to inspire you. You need to be your own inspiration. You just need to keep on trying until you get even the smallest successful stop when you have that smallest successful stop that will be enough to create a milestone in front of you. That is what it takes to be a businessman or an entrepreneur. It is not about making money. It is all about staying on the way of being successful. That is the happiest part about this whole thing. I might not be making any sense here. But this is exactly how I feel.
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Part 8 – make more money
I have tried so many things and failed at so many thanks. But at the end, I am still able to make money. because I don’t focus on making $100 profit. I focus on not making $1 of loss. And when I have no losses, this gives me the confidence to go on. And that confidence gives me more ideas and opportunities in front of me. That is how I worked my way from the ground level to the man that I am right now.
People used to look down at me. Because I wasn’t doing too good at a time. People that were close to me used to tell me things. They told me to get more things. Get more capable. But I was always thinking in a different way. I think that you don’t need to show to be rich. When you are rich, you are rich. You don’t need to show Gucci and Lamborghini to be rich. How many times you have seen a Lamborghini of Jack ma? Jack ma is the founder of Alibaba. Or Mark Zuckerberg? You don’t need to show to be rich.
Just be rich. Focusing on making more sources of money making. Not just to get things that are only for the showing purpose.
After doing business for some time in high school. I was able to make the payment of all the debts that we had. I did not go for having a fancy smartphone. Even when I did have that ability to purchase a couple of them. But I utilized that money to make more money. And now, people think about me in a different way. Not how they used to back in the time.
At one time, I got to know about e-cigs. Those were really cool. But people didn’t want to get into the business of this. Because people didn’t know whether or not this will make profit. I got no funds for that. Used the amount from my savings and started to invest in small amounts. I studied and looked for ways to sell e-cigs. Got to know that people in Canada are not that much interested into this. I got into a contract with a local store. That they will buy whole sale product from me. And they will only pay me if they are making profit. In this way, I made a relation of trust and contract. When things got in the proper way. I was able to manage to get the things done that I need in my life.
After that stage, I got myself into the restaurant business and made more sources of liquid cash. Got much more stable and got time to spend time with my family. I only filled the need that were really serious. Was never being cheap. I only went for the things that I really needed. And now, here I am. Standing in front of you. Telling you all these things.
Because I have been in your place. I know how it feels. To have no guidance.
I just want to help.
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