Saving for Your Big Play
Someone can be worried by the word big play and asking yourself what it could mean, here we go; what is Big Play? The big play is that investment that gets you to get excited with and it’s a little unusual. It’s almost a sure thing when you pull the trigger. Now by saying a sure thing, it means that you did the proper research on your investment. You know the risk and the reward. You have contingency plans on how to protect your investment, and you are not speculating or gambling.
Problem
The problem with the big play is that most people don’t prepare for it. They do not have the funds or access to the financial resources for the big deal. The deal of a lifetime happens every week for those who can act on it. Deals are like money. They go to the people who pay the most attention to it. Are you ready to save for Your Big Play?
Playing Too Small
People are playing too small. They never invest enough for the big payoff. Whatever you invest on, is actually what you get in return. The small investment is equal to a small profit. A substantial investment is equivalent to a big payoff.
People don’t create wealth because they don’t invest large enough into a deal to get a huge payoff. Building wealth requires a surplus of cash and confidence. Sure you can create wealth over a long time with small consistent investments. You have seen the graphs of how your money can grow with compound interest. But I am talking about creating wealth now.
Your First Target
One should save like $100k for example before you make your first big play investment. Now he is not set in stone on that figure, but that is a target most people can achieve with discipline.
Furthermore, to save that much you have to find ways to increase your income, and it gives you time to study income-producing investments. Also with that time and discipline, other opportunities will open up for you.
Steps to Saving for your Big Play
1. Write Out Your Plan
Money gets bored and goes to the person who pays attention to it. Write out a plan on why you are saving for your big play and what you will invest in. If you don’t have an investment idea yet, that is okay. It’s essential that you make a commitment on paper that this money is for wealth creation only.
Money with no plans dramatically vanishes. You have experienced this before. Whenever you had extra cash lying around it went quickly. Commit in writing how the money will be used for every business you are planning to set out.
2. Increase your income
You will never get wealthy without increasing your income. People miss this point. They start to save, cut back on their expenses, and pay off their debt. But they never intentionally increase their current income. Income is your fundamental way to wealth. The more you can improve your current income the more you can save to achieve wealth status.
Look for opportunities to increase your income at your current job. Can you generate more tips? Are their bonuses you are missing out that you can operate on? Can you perform other duties and tasks? Could you bring in more customers to your business to increase sales and purchases? Is overtime available for your extra work? Can you get paid on referrals? How about getting a second job different from the one you are operating on?
3. Cut Expenses
Another way to create surpluses of cash is to come up with a monthly budget and cut all the expense that is holding you back. Go through your monthly bank and credit card statements. There is crap on there that you didn’t need to buy. Cut back to the bare minimum. Don’t go into any more debt. Indeed, if your spending is out of control or beyond your limit capacity. Seek and get help. Understand there is hidden money in your monthly expenditures. Seek and get it.
4. Open Up A Sacred Account
This is an important step. Open up a high-interest savings account. This is the start of your savings plan. Online banking is also recommended with a limited number of transactions per month. Importantly, an account where it takes a couple of days to get your money or your interest. Limited access will curb your impulses.
Give your sacred account names also. This makes it real and personal. Once your money goes in that’s where it stays until you are ready to invest.
Understand emergencies and risks happen. The temptation will entice you to dip into your sacred accounts. Opportunities will arise that will be calling for your money. This is why you have a written plan to keep you on point. Don’t dip into your sacred accounts. They are off limits.
5. Decide on how much you will save each month
I teach my students to come up with a monthly budget that they can live upon. Then we put all the extra money into those sacred accounts. We Save It All. Income spikes, income surges, raises, bonuses, and additional windfalls. Save It All! This is not the time to buy shiny objects.
Increased income goes into the sacred accounts too. This is why you have created a budget. All the extra money from eliminating spending and increased revenue will generate. For example, people who cut like one thousand dollars every month from their spending and add it to their sacred accounts.
Earn and learn
Idea Hard Work multiply by Time plus Discipline gives out Success. This is the success formula that you can work on. Use it to build your sacred accounts for your Big Play. Learn while you earn. Study investments, and prepare yourself for Your Big Play.
Great, big play, big investment, generates wealth, and become rich.
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