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Where money flows it grows

There are two directions that money can flow from of your pocket. The first is through spending and the other is through saving and investing. If you spend you help the economy to grow and all those who benefit from your purchases. If you invest you help your own finances to grow.

The worst thing you can do with money is to ignore it. When you take on long term investments you will grow through compound interest , capital gain , passive income and dividends. You might not be doing anything with it but the economy is growing it for you.

Outside this area of investment personal finance, you must constantly analysis you’re finances to move it regularly. Everything from car insurance to utility bills should be scrutinised yearly for a better deal. Change your grocery shops for cheaper deals on products. In essence the more you focus on money and its return the richer you get. Due diligence is everything as the best sounding deals in the short term are not always the most profitable for you over time. We all hate reading the small print which is often extended to put you off reading it but practice this skill. It will increase your income by saving unnecessary spending.

The most successful business in the world is the finance business as money attracts money. The most successful athletes and trainers and the fittest in the realm of nutrition are those who are in the health and fitness industry. This is because they can focus on it full time despite informing others what they should do , who have other career priorities. The same is true with money. The investor who uses their own money isn’t always the one to get rich. It is the broker who uses your and my money to get rich, through fat fees. The biggest brokers on the planet are the banks.

I explained this in the blog about prostitutes, shovels and gold panning. In the gold rush it was the prostitutes and the shovel salesmen who got rich off the gold prospectors. Look beyond the obvious and you might notice a niche as an offshoot to an established industry that trances the industry itself.

Peter Bull( Author of the book (GET INTOUCH WITH YOUR INNER WEALTH)

Published inBusinessMoneySociety
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