When I first started out on this journey to success, I learned that one of the key habits of very successful people was reading – a lot of reading. I had a lot to learn, so I began to do a lot of reading.
The very first book I bought was Investing with Purpose, by Mark Aardsma. This book taught me a lot about investing, but more importantly, it taught me about living with purpose and investing so I can achieve the kind of life I want.
The big lessons I learnt were:
- Remember the Big Picture
- Be aware of your resources.
- Become the master of time.
- Chose investment over consumption
- Understand ROI.
- Remember the big picture:
The best way to successfully live with purpose is to be very clear about what you will use your wealth for. What is the big picture?
For me the big picture is living a beautiful life and being free and financially powerful enough to live an awesome life.
I know money can’t buy me love, so I’m not striving for a pile of cash just for the cash itself. The cash is a lever that will give me the power to have the life I want and to be able to do great things in the world.
My purpose is to achieve this goal and spend my future years living happy and travelling around the world doing great things. I think of this every day, and this is my purpose and what gets me to keep striving for success.
What to do:
- Have a great purpose for your life.
- Keep it clear in your mind.
- Strive every day to bring that into reality.
Living with purpose gives you a chance to make the impossible, possible.
2 Be aware of your resources.
When living with purpose, you start to direct everything in your life towards your purpose. If you have a big purpose and target, you need to be actively using all your resources to help you achieve your goals.
Resources are not just cash or stocks or assets. You begin to realize you have resources all around you. The big lesson that I got, was that we also have huge amounts of shared resources that I never really thought about. We have public libraries, public roads to use and so on. But most of all, the power of the internet these days gives us an ocean of relatively free resources.
With the internet, if you want to make a million dollars – you can literally ask the Google machine, and it will give you a mountain of options to think about.
If you don’t know how to run a business, or how to do accounting, or how to market, or how to make something, and so on, all you have to do is ask and you can find an answer. That is an amazing resource, and I’ve had to use it a lot.
Once I realized this, I started to make use of these free resources. I started to look at every resource I had and actively tried to decide how I could use and maximize every resource I had and every resource I could find.
What to do:
- Don’t look for limitations.
- Really look at where you want to go and see what you can access right now to take you a step closer to your dream.
- Find a path to get the resources you need to achieve your dream. (Right now I don’t have the skills and all the things I need, but I’m working step by step to get what I need.)
Use what you have. Get what you need. Go step-by-step until you finally get to where you want to be.
3 Master time.
By far the biggest and most important lesson I learned in this book, was that time is hands-down the most valuable resource we all have.
We all have time and relatively the same time. We are all born, and everything being equal, we have around 90 years.
The important thing for us all to remember is that how we use our time is really the most important thing.
No matter how rich we get, we still all have the same amount of time. No matter how clever, or handsome, or pretty, or funny we are, we all have only one lifetime to enjoy.
If you want to live a great life and be a real success, the most important resource you need to master is time.
There’s no point being rich if you spend all your valuable time working and worrying about money.
- Invest in resources that save you time: Such as a chainsaw instead of a handsaw.
- Become the boss: own your own time and products, and delegate the operations to trusted employees.
- Invest your capital in income generating assets: Such as stocks and property, so you can make money while you’re sitting on the beach in paradise.
These are the keys to becoming the master of time.
These are the keys to living life on your terms.
These are keys to becoming truly successful.
4 Chose investment over consumption
Lesson number 4 is simple. Save your money instead of spending it.
If you save your money and invest it, you can buy enough income creating assets so you never have to work again. If you spend all your money, it’s gone and you have to work to make more.
Worst still, if you spend more than you make, then you get stuck in debt. Then instead of making interest, you end up paying interest. Then you have to work more and more, to pay off an ever-growing debt.
Simple: save money and become free.
Become master of time and money.
5 Understand ROI.
After lesson 4 teaches you to save and invest, the next lesson is to understand Return on Investment. Evaluate and understand the return you can realistically expect from investments.
You need to work out what value an investment potentially has. For example, if you invest in a new piece of technology to help you do your job faster, how much will it cost and how much will it generate? If you stand to make more, overall, then this is a good investment.
Also, know that if you invest your money in the bank you will get X% return on your investment. Know that if you invest in Bonds you can get Y% return on your money. Know that if you invest in stocks you can get a higher return than the bank and bonds.
However, you must also be aware of risk and learn how to calculate it. This will be covered down the track, but you can at least start to think about the likely return you can achieve and weigh it against the likely risk of loss and make balanced decisions about how to spend your valuable time and money.
Also, be aware of the hidden costs. The big one is taxes and inflation. Everyone has to pay taxes and every dollar you have is subject to inflation. There’s no point making an investment if you are going to lose all your returns in extra taxes – so start to be aware of it.
And there’s no point investing your money in the bank at 3% interest if the inflation rate is 4%. You will actually find that the value of your money is going down, while you think it’s going up.
It was valuable insights like this that really woke me up to the value of investing and living with purpose.
If I want to have a big wonderful life in the future, then I can’t just work and save. If I just work and save, and pay taxes, and lose to inflation, then I get a very average future.
I want a big bright future, I need to know how much I need and invest to get it.
How you use your valuable resources will determine how well you live and the kind of future you will have.
The best way to achieve the best possible life you can achieve, and become a master of time and money and live with real purpose, is to allocate your valuable resources to the highest potential return you can find.
This is not easy, and this is an area I need to investigate further. (So watch this space.)
Obviously, there’s a lot more to learn about Investing With Purpose, and I recommend you read Mark Aardsma’s book for yourself. However, at this early stage of my investment journey I think these are the big take away lessons that have got me to start living with purpose.
These rules have set me out on a path that will lead to living with purpose, investing and getting the life I want.
I have faith these lessons have me on the path towards true success.
I hope that sharing these lessons with you has helped you too to look at your life purpose. To look at how to become a master of your resources. A master of your time. A master of money. A master of investment. I genuinely hope this has inspired you to never stop living with purpose and to keep on striving for success.
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