[For individuals and businesses alike] How to use money to grow your money

No matter how much you work, you don't save money. Sales are good, but no cash remains. Are there people out there with such worries? In fact, I myself had such a period. However, once I improved my 'money usage,' the situation rapidly improved, and money started to remain in my hands, so I'd like to share that.

However, I believe there are also people who fundamentally don't know how to 'earn' before they even start spending, so first, I'd like to talk about the basics ofthe basics of earningbefore explaining how to use it.

By the way,For those who find the act of 'earning' itself suspicious, first,'this'please read and try to reform your mindset. In this day and age, an earning mindset is necessary to achieve any vision.

Two Principles

To fundamentally earn a lot of money, you must challenge one of two principles. People and companies with large assets invariably fall into one of these two categories, almost without exception.

• Running a business
• Investing

There are almost no exceptions to these two. Think about wealthy people you know. Unless there are exceptions like inheriting from parents, they almost certainly fall into one of these two categories. However, instead of immediately challenging the above, many people generally take one of the following two paths as a preliminary step.

• Improving skills
• Achieving results at work

After taking one of these steps, they start a business or invest. This is because starting a business suddenly without capital or skills is quite risky. If you have skills, you can start a business based on those skills, and if you have achievements, you will have acquired necessary elements like connections and funds for both business and investment.

Therefore, initially, people often invest in 'themselves' to acquire skills or create achievements at work. As a result, training yourself first, though it may seem like a detour, will likely be a shortcut.

However, ultimately, the way to acquire significant funds is by running a business or investing. Once you've honed your skills or achieved results at work and are in a situation where you're no longer struggling financially to some extent, start a business or invest as soon as possible.

Three Usage Rules

Once you are in a position to earn money by either running a business or investing, you must then be careful about how you use it. If you misuse money, even if you earn it, absolutely no money will remain in your hands. Many people who are busy but don't save much money are failing at this. So, what rules should you be aware of? Specifically, they are the following three.

• Minimize wasteful "consumption"
• Use all earned money for "investment"
• Reduce fixed costs to the absolute minimum

Among these, have you been conscious of any until now? It's the same for individuals and businesses. In conclusion, if you don't spend money while being conscious of all three of these, you will never accumulate money. Those who aren't conscious of even one, please recognize that it's quite serious. Now, I will explain each one.

Minimize wasteful "consumption"

First, regarding consumption, this is an expenditure that does not become an investment. For example, meals and travel for enjoyment, all payments that "do not lead to an increase in money" later on can be called consumption.

If you buy that clothing, will your money increase later? If you take that trip, will your money increase later? Of course, there will be consumption for maintaining and improving mental care and motivation. You can count that as a necessary investment (though ideally, you should control even that).

However, if you consume more than the minimum, not as an investment, for reasons of mental care or motivation, money will not accumulate. As much as possible, thoroughly suppress consumption that will not lead to new money later on. Save as much as possible, down to the last yen.

That's why wealthy people are relatively frugal. They don't spend money on simple consumption. Because the more you consume, the more money disappears wastefully, it should be minimized. So, if you ask what wealthy people and asset owners spend their money on,It's investment.

Invest all earned money

While you have little capital, focus on self-investment, or new businesses that will grow as your assets; once your money gradually increases, continue to invest as much as possible in stocks and the like. If you spend a lot of money on consumption, it's many times better to use it speculatively in foreign exchange (FX) and the like, compared to consumption. Although it might not seem very good socially, it's different if you want to increase your money. By the way, I haven't talked about this much because it might seem suspicious, but I myself am able to earn about 500,000 to 600,000 yen per month with FX.

That being said, if you only have a few tens of thousands of yen that you wouldn't really mind losing, you can't expect significant profits even if you invest in FX or stocks. At best, you'll have practiced, so starting stocks or FX as practice is good, but when it comes to genuinely increasing your assets, I think it's quite difficult.

Therefore,While you have no money, full self-investmentis the way (for businesses, aggressively invest in new ventures and business expansion).Acquiring skills and becoming able to earn with those skills can actually be a shortcut, even if it seems like a detour.Even if you try to make money earn money recklessly, without capital, most people can't significantly increase it, so it's best to first invest in yourself, gain experience to be able to work, and acquire methods to 'earn with your own power'.

During that time, practice by investing in stocks and the like with some leftover money, and once you've accumulated money and can earn stably with your skills, increasing the amount for stock investments and currency speculation will make you more mentally stable, and money will also increase more easily. That's why, initially, self-investment in skills offers a higher probability of return.

However, what you should overwhelmingly invest in more than stocks or foreign exchange is, after all,"creating your own business"It is.If you are working as an individual, 'starting your own business' is the one with the biggest returns and the strongest investment for growth.I believe.

First, if you nurture a business and take it to sale or IPO, you can instantly acquire an amount of money that an individual with limited assets couldn't earn even by trading for 10 years. That amount is at least tens of millions to hundreds of millions of yen,Among them, there was an example of a business being sold for 6 billion yen despite being launched only a few months prior. ZOZO founder Maezawa sold his for 100 billion yen.This is certainly not an amount that can be earned through individual trading. It's enough money to change your life in an instant, isn't it?

Furthermore, by creating and operating your own business,you can 'create and monetize your own business anytime, anywhere.'This is a very useful skill, meaning you can earn money on your own no matter what situation you find yourself in. You can rapidly acquire various knowledge and experience, such as how to design a business and how to do marketing, which fundamentally improves your capabilities significantly.

Therefore,For me, the first step is to acquire skills, then launch my own business to gain stable income. At the same time, I'll boost my own abilities so I can monetize anytime. While aiming for an IPO or sale of my business, I'll invest the acquired funds into stocks, foreign exchange, and real estate.If you have assets in the tens of billions of yen, investing in venture companies, startups, etc., and increasing your assets in a mentally stable state is a good investment flow, I believe. In fact, by doing so myself, I have gained considerable freedom in both work and life.

By the way, for IT skill acquisition and business creation, you can learn and practice both at what we are currently operating「STARTOUT」where you can learn and practice both. If you want to specialize only in business creation,「WAREHOUSE」I think using [this] would be a shortcut.

It's important to continuously invest in things that grow as assets, while suppressing consumption to the extreme. Please give it a try.

Reduce fixed costs to the absolute minimum

Surprisingly, this is where both individuals and businesses often fall short. What is reducing your money is,consumption, but among consumption, fixed costs are the most troublesome.Try adding up all your rent and monthly payments. Then, it would be good to calculate how much you pay annually.

For example, NETFLIX costs at least 800 yen, doesn't it? If you pay 800 yen every month, that's 9600 yen annually. If you can save 10,000 yen on rent, that's 120,000 yen annually. If you can reduce all utility costs by 3000 yen per month, that's 36,000 yen annually. Aren't there various other smaller fixed costs? If you calculate all of them, there's a possibility you could save about 200,000 yen annually.

If you can self-invest this 200,000 yen, you could probably acquire at least one skill, couldn't you? If you earn money with the skills you gain, you can make progress little by little, but steadily, right?Buy skills with saved money, and increase money further with acquired skills.This is how money grows.

For businesses,they might hire too many people unnecessarily, or pay exorbitant rent that's beyond their means. The basic principle is to operate small and generate large profits.Therefore, it's foolish to incur unnecessary costs without any expectation that paying those fixed costs will lead to a certain amount of business growth in the future. Hiring people, paying high rent, investing money in advertising – all of these must be done with a certain understanding of how much the business can expand as a result of the money spent.

However, especially common in newly started businesses or companies,is the tendency to rush growth by hiring too many people, or to invest heavily in advertising without any sales forecasts, leading to significant losses.First, you need to start small, test the effectiveness to some extent, and then allocate a fixed budget.

That's why you should review your fixed costs. This applies to both individuals and businesses. Cut unnecessary fixed costs as much as possible and invest the money saved. By doing so, your money will grow like a snowball, and you won't easily face financial difficulties in the future.

Summary

So, I wrote about money after a long time. While it's a basic topic, if you reconsider how you use money with this content in mind, your situation should gradually improve.

Surprisingly,there are more cases where people incur significant losses through how they use money rather than how they earn it.Wealthy individuals often say,money can actually be harder to use than to earn.I myself made many mistakes with how I used money in the past.

Take a moment to review your own money usage. Are you spending unnecessarily? Are your fixed costs too high? Are you investing? Definitely reconsider these three points. Your life might improve significantly.