SACRIFICE, CAPITAL AND WEALTH

90 per cent of new business start-ups fail. While that might be more or less true, it’s no excuse for those who possess ‘the right stuff’ to not try to succeed. Thankfully, we can take certain savvy steps to nudge the odds in our favour.

For instance, from a financial planning perspective, what we can proactively do to elevate our chances of eventual success is to prepare ourselves mentally, emotionally and financially before launching our own business start-ups.

Lincoln was correct in explaining how a viable self-owned business might be birthed through delayed gratification stemming from personal sacrifice. Even today what Honest Abe observed in the 19th century holds true. Furthermore, in our more populated and relatively hyper-sophisticated environment there are countless more ways to participate in Earth’s aggregated burgeoning economy while still remaining, if we wish to, a salaried employee.

In my financial planning workshops, I point out that the best, sure-fire way to grow wealthy is to ‘spend less than you earn, save and invest the difference, and to do so for a long, long time’. Obviously such advice is easier given than heeded.

When Lincoln underscored the need for a hard worker who: “... saves a surplus with which to buy tools or land, for himself...,” the soon-to-be-President was succinctly describing the way capital is created through two sequential acts: toil and sacrifice.

When a hard worker with a long time horizon chooses to exert his brain and body for long-term gain, he or she transmutes labour and time into money. Then, when a decision is made — and acted upon — not to spend all of that saved money immediately, capital is created with the potential of being harnessed effectively.

Therefore, each of us should learn how to accumulate or acquire capital so we may put it to work for our families, our dreams and ourselves. In next week’s column, I will elaborate on how our paid hard work or, better yet, our well-paid smart work when coupled with our ability to give up shortterm pleasures for long-term benefits can create a pool of capital.

That pool of capital, if utilised wisely, can improve the trajectory of a person, a family or a whole country. Till next Sunday, I hope you will use the coming week to safely set aside some precious capital for your own long-term prosperity.

© 2018 Rajen Devadason Readhisfreearticlesatwww.FreeCoolArticles. com; he may be connected with on LinkedIn at www.linkedin.com/in/rajendevadason, or via rajen@RajenDevadason.com. You may follow him on Twitter @RajenDevadason