The old notion that working hard was the only way to become successful in life, despite being positive, is not always true. Undoubtedly, working hard is important. But, it will not always make you rich. Facts show that most societies have many people who work hard, but have nothing to show on retirement. Some people may have worked for 20 to 40 years and as twilight sets in, they feel poorer than when they began working. Managing and controlling money could avoid this. Knowing what to do with money is where you move from hard work to smart work. This secret will enable you spend days relaxing because you worked smart. Working hard can be a temporary situation for some people and permanent for others to grow rich. However, the situation can be changed if one learns how to work smart work. You need to understand that the more your money works for you, the less you will have to work to earn more. Many people, however, may be aware or not that they are in this money game. The goal of the ‘funds game’ is to be financially free early. Financial freedom may be defined as the ability to live the life you want without necessarily going to work; the ability to buy what you want and not what you can afford; the ability to buy clothes that fit you and not the ones that you can afford. Such a freedom would be nurtured when you allow money to work for you without a drop of sweat. Your hard-earned savings can be made to work for you in two ways, by investing in financial instruments and in investing in real estate and allied ventures. Unfortunately, the capital market in Rwanda is yet to be recognized by most Rwandans but these ways are possible if, firstly, you start paying yourself ten per cent for a year or so to accumulate money, which will be used in buying bonds, stocks, mutual funds and other assets whose value appreciate. Secondly, your money can work if invested in a small business. Here, you can have employees working for you while concentrating on investments like real estate and royalties. It is wise, therefore to identify avenues for business that do not require too much of your time and large capital outlays. Many people fail to create avenues where funds can work for them. This is because they do not think beyond their comfort zone. The blame lies solely on our upbringing. We were brought up believing the only way to obtain money was to get a job and work to earn our keep. We were never told that money could work for us. Besides, we were not taught how to do it. It is true, in most cases, that rich people have more money, but spend less, while mendicants have little and spend a lot. My take is: those who want to join the affluent class must think and live long-term, rather remain poor, by thinking and living today. As a way forward, learning about investment avenues is necessary to have funds work for you. It is advisable to pick, specialize in one area before investing. As the venture picks up, diversify into other broader areas. Decide that you will not work hard, make money and spend all of it; but be the one who will work hard, make, save and invest the money so that it works hard for you. dedantos2002@yahoo.com
