If you are a wealthy man or woman or an entrepreneur who intend to build their wealth to a reasonable level, then there will be need for you to protect your money from anybody that can easily have access to the money. Your family member and friends know how to get money from you especially if they know that you have the money stacked somewhere.
The truth is that if your goal is to achieve financial stability as an entrepreneur, then you must be financially disciplined. Being financially disciplined means that you only spend money when it is highly necessary not on impulse. Being financially disciplined as an entrepreneur means that you should be able to jealously guide your business capital and also you should be able to re – invest your profits back to your business if your target is to grow and expand the business.
No doubt if you are wealthy, people will always run to you for financial help and the truth is that if the rate at which you dish out money is less than the rate at which your business or investments yields money for you, then you are going to go broke in no distant time.
For an example, if you have $1000 in your account and 10 different people (family members and close friends) come at different times to lend or request for $100 to solve pressing problems. If you yield to their demands, you are sure going to be left with nothing by the time you are done giving the 10th person $100. That is the reason why it is important to protect your money from family members and friends.
Now let us quickly consider the steps to follow to be able to protect your money from your family members and friends;
9 Sure Ways to Protect Your Money from Family & Friends
1. Put Some of Your Money in Fix Deposit
One of the ways that you can protect your money from family members and friends is to put bulk of your money meant for savings in a fix deposit account. Fixing your money yields more interest than normal savings account but you won’t be able to withdraw the money when it is not yet matured. With this, even if your family members and friends make request from you and you inform them that your money is fixed in a bank, they will understand.
2. Re – Invest Your Profits Back To Your Business
If you are in business and you don’t want loads of loose cash from your business (profits) to be available in your hands, the best way to handle it is to re – invest the money back to your business. The truth is that once your family members and friends noticed that you have loose cash, they would want to place demands. So re – investing your profits back to your business is a means of protecting your money from family members and friends.
If perhaps you win a lottery or you inherit loads of cash, you are likely going to attract family members and friends who would need you to help them solve some of their financial problems since they know you have the money. One of the ways to protect such money is to start a new business. If people come to you with the aim of borrowing money from you and they noticed that you are starting a new business, they are likely going to soft pedal.
Another sure way of protecting your money from family members and friends is to invest in shares. Of course once your family members and friends noticed that the bulk of your monies are invested in shares, they won’t place unnecessary financial demand on you.
Investing in bonds is another means of protecting your money from family and friends. Of course when you invest in bonds it will take time for you to be able to get back your investments with interest. So if you want to protect your money from family members and friends, then you should invest in bonds.
Another means that you can adopt to protect your money from family and friends is to invest in hedge fund. You can search for hedge fund managers around you and then invest the money you don’t intend to spend.
If you want to protect your liquid cash from your family members and friends, one of the ways to achieve it is to buy and store gold and silver. Of course once your family members and friends notice that you have invested the bulk of your money in gold and silver, they won’t place financial pressure on you. Unlike fix deposits and other form of investment, with gold and silver, you can easily get back your money by selling them off once there is pressing need and you are cash trapped.
Investing in the commodities market is another means you can adopt to protect your money from family members and friends. If you invest your money in commodities, it means that you can only get back your money with interest on an agreed date in the future or the commodities will be delivered to you on an agreed date in the future.
If you have lump sum of cash and you don’t want to engage in a giving spree, then you need to protect the money. Part of what you need to do to protect the money from family members and friends is to invest in real estate. The truth is that once your family members and friends noticed that you are involved in a construction project, they won’t place unnecessary financial burden on you.
10. Join a Thrift and Co-operative Society
If you are an employee and you want to protect your spare cash from your family members and friends, then you just have to join a thrift and co-operative society. It is a way of protecting your cash from your family members and friends.
All the points listed above will not only help you protect your money from family and friends, it will also help you make more money.