Sell Anything You Do Not Need
As I have already explained I liked to buy clothes, shoes, electrical equipment,
golf equipment and sometimes even expensive watches. And I was doing this
even though I owed thousands of Euros to the bank and to my credit cards. The
only advantage of this was I realised I had a lot of stuff I could now sell! So I
went on a huge selling spree, using Facebook Marketplace, eBay and other free
advertising channels. I even sent my customers a list of my golf equipment
which helped me sell even more. In the end, I sold over €6,500 worth of stuff in
around 3 months.
It was so refreshing: suddenly I could boost my savings pots and pay off some of
my debts. Take a look around you how often do you use the PlayStation and its
30 games, the beautiful mountain bike downstairs, the hardly worn Rolex, the
three sets of golf clubs in the cellar, not to mention the brand new Armani
Jacket? I realised I had accumulated so many things that were simply lying
around my apartment looking pretty. I even sold clothes and shoes which I never
used, a stereo and microphone, and the old mobile phones that were in a
cupboard collecting dust.
I do not miss anything I sold during that period, even the beautiful luxury watch,
and it really helped me get rid of some of my debts and put more money into my
savings account. Even if I did momentarily miss something, I knew that what I
was doing would allow me to easily purchase a replacement, but without the
debt hanging over my head.
Save to Invest
When you begin your mission of saving money you want to achieve two main
goals. One is to have money on the side in case of emergencies or a change of
employment circumstances. This is a smart idea and one I think everybody
should try to achieve. But in the current environment (2021) interest rates are
very low and the money you are saving in your account is not earning anything
for you. The second goal is to make your money work for you and this means
looking to invest your money into schemes which potentially increase its value
over time, as opposed to liabilities which decrease the value of your money over
time.
Investments such as stocks and shares, property, precious metals, artwork and
the like have the potential to grow your money. Liabilities are actually
investments that depreciate in value the longer you hold them, so your car
(unless it is a very rare Ferrari) is a liability because it is costing you money to
run tax and insure and its actual value is going down every year. (more on that later)
Naturally there is always a risk associated with investments but normally it is
a sensible calculated risk so long as you do not speculate or gamble your money.
If you are continually growing your money over many years, your overall wealth
will increase and you will not be so reliant on your monthly income. Be diligent in
the process, keep saving money and paying into your pension scheme as well as
investing in other areas and you will soon see that you have accumulated a lot of
money in a relatively short period of time. If you know nothing about investing,
then read books about it, go to see a financial advisor or talk to people you know
who have experience in investing to find the best options for you.
Create, don’t consume
One of the best mindsets to have is to decide you will be a creator rather than a
consumer. This is a strategy I came across while reading The Entrepreneur
Revolution by Daniel Priestley. The idea is that many of the items you currently
spend your money on should actually be things you are personally creating
yourself. If you invest a lot of money in books then you should write one and sell
it. If you invest in courses and education then you should be selling your own
courses online. If you spend money on products and services then become the
creator of those products and services. This way you are creating and earning
not spending and consuming.
Assets & Liabilities
One of the most important pieces of advice I ever heard was to understand the difference
between an Asset and a Liability. Simple put an asset has a monitory value with can increase
or decrease over a period of time. Examples could be Stocks and Shares, real estate, a high interest rate
savings account, or even a piece of art. All have the potential to go up in value and therefore
earn you money. A liability on the other hand is something which loses value the moment
you purchase it, generally speaking a car is a liability because its value is decreasing
while its costing you money to run and service. Any type of debt which is money lost
can also fall into this category, your credit card for example charges you high rates of interest
as well a the actual debt you are paying, your rent if it is not your own property also can be
seen as money lost and never regained.
When purchasing something new, decide whether it is an asset or a liability, if you are
purchasing only liabilities then you will really struggle to become financially stable, as there
will be no room for monitory growth in anything you own.