Hello dear readers of my blog financial-independence!
7 rules of wealth that everyone should know:
- Learn to fill your wallet. This is one of the main principles of wealth. Pay yourself first and set aside at least 10% of any of your cash receipts. Received a salary - set aside 10%, won the lottery set aside 10%, hack turned up, do not forget about 10%. Nowadays, most people pay everyone but themselves! You buy food, pay the vendor, buy gas, pay gas stations, go to the hairdresser, pay the hairdresser. When will you pay yourself? You don't deserve money? This is not correct, you should pay YOURSELF first. Save at least 10%! Why exactly 10%? Everything is very simple, a person can easily live on 90% of his income, while he does not notice a special difference. Personally, every time I receive a salary, I save a little more than 10%, and I do it with ease. The main thing is to start. By the way, remember that you must first postpone, and then spend, and not vice versa. This is a very important rule, we can say that this is the main rule when moving towards wealth. Without this rule, the rest of the rules are useless. Well, I'm sure that competent and responsible people who want to change their lives read me, and therefore these rules will be easy to follow.
- Control your expenses. This item is well described in the article "", in which I described in detail how you can control your expenses and why this is very important. In short, controlling your spending will help you save more money for investments. By the way, on my blog you can find an article about that, which will also help you reduce your costs.
- Multiply your money. Learn to invest.
Just the money in the wallet, of course, warms the soul,
but they are of no use if they do not grow and bring even more money. The streams of money that flow into your wallet are the sprouts of your wealth. And the more such streams you have, the richer you are. Where, you will also find out on my blog. Read the article and be surprised how many ways to increase your money there are in the modern world. - Protect your money from losses. The more money you have, the more you want to participate in dubious projects. By the way, I myself participate in such projects, but I do it competently and therefore even the complete loss of all investments in such a project does not hurt my pocket. Therefore, minimize your risks of losing money. If you have little experience, then it is better to invest in reliable and time-tested projects and financial instruments. Today, this is also PAMM accounts, if we are talking about online investments. And by the way, ask for investment advice from professionals, people who are engaged in investing. No need to ask the janitor for advice on how to buy gold or jewelry. You can only learn from the janitor how to properly sweep the street and which broom to choose, he is competent in this. It's just that now there is a tendency on the Internet when people ask everyone for advice. Some complete stranger invites him to participate in the next “super reliable project” and you didn’t check this person, you agree not this project and lose your money. You need to be careful about your money and they will answer you with good growth.
- Make buying your home a worthwhile investment of your money.
Well
friends, this advice gives the richest
man in Babylon, and this is good advice. When you have a roof over your head, and even your own, it’s much easier to work, you know that you have a rear. Now most people live in rented apartments and it is very burdensome morally and financially. Moreover, renting an apartment in modern conditions is not a cheap pleasure. Therefore, you need to take out a mortgage as soon as possible and the money that you pay the landlord every time to pay the bank, but you still give the money, but in the end you stay with YOUR apartment. I myself am now looking for an apartment and a good mortgage loan. Still, living in your apartment, equipping it and working in it is much more pleasant than in a room of 14 meters. Therefore, having saved up money for a down payment, and by completing the first 4 points you will do it easily, buy your own home and get a new influx of strength and vitality. - Ensure income generation in the future. This wealth rule is about your retirement, the time when you can no longer work, but you need to live on something, so while you are working
secure your future, make sure that your family does not need anything. Create additional cash flows for yourself that will work without your participation. Here we are talking about various long-term investments in reliable tools, your airbag for many years to come. Tools must be reliable. Of course, the percentage in such instruments is very small, but the chance of losing them is minimal. In the modern world of finance, this can be done using such instruments as pension savings in NPFs, endowment life insurance, a bank deposit with the possibility of partial replenishment and withdrawal of interest, and other instruments in which the risk of losing your funds is minimal. REMEMBER: Create multiple sources of income in different places and provide for your family for years to come. - Improve your ability to earn. This paragraph sums up everything that has been written above. You need to constantly learn and put into practice your knowledge. An investor, and indeed any person who wants to become rich, must understand that you need to find more and more new ways to generate additional income, because some of your cash flows may be interrupted. You must increase your cash flow by creating many small "money streams". Therefore, learn new things, study and develop. And I hope my blog will help you with this.
Be sure to watch the video, which will help you better understand this topic. Especially the first paragraph of this thread:
Remember that money willingly goes to someone who knows how to manage it and knows its price. By following these 7 golden rules of wealth, you will easily achieve your goals and become financially free, you will provide your family with prosperity for many years to come.
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A selection of great tips, listening to which, you can start moving in the right direction to gaining wealth.
1. Think like a rich and successful person. Remember that everyone can earn money.
2. Decide on financial goals. What does your life look like in 5-10 years? How much money do you earn per year? By setting your financial goal in advance, you are now paving the way to happiness and well-being.
3. Never tell anyone about your plans.
4. Formulate new beliefs for yourself that are consistent with financial success. For example: “I am always lucky”, “Money comes into my life easily”, etc. At the same time, get rid of the negative attitudes associated with money.
He is the richest who is satisfied with the little, for such contentment testifies to the wealth of nature. Socrates
5. Remember that wealth is not the result of small efforts. It is the result of right thinking, perseverance and constant work.
6. Determine what you need money for in life. What would you like to buy with them? How many people could you help and who would be much better off with your money?
7. Make money honestly, otherwise you risk losing everything soon.
8. Study how successful and financially wealthy people think. Try to spend as much time as possible in their environment. Listen to their advice.
9. Never envy someone else's wealth. Envying, a person shows the Universe that he is not yet ready for money. You should be grateful now for everything you have.
10. Managing yourself is much harder than managing your money.
11. Before you start moving towards your goal, take a close look at where you are at the moment.
12. Plan your every day. This will keep you focused on the things that matter most.
13. Control your finances. Set aside 10-20 percent of your income in the bank. Invest in your future.
14. Never take risks at first. You need "solid ground under your feet" in order to start making difficult decisions and balanced steps.
The rich today have forgotten that money is a means, not an end. Frederic Begbeder
15. Trust your intuition. She will show you the right path.
16. Always have at least some amount for unforeseen circumstances. Let this be the so-called "financial pillow" for you.
17. Don't try to get rich too fast. For this, you can pay with health and reputation.
18. Never borrow money, as well as various loans.
19. Don't trust ads that promise you get rich quick. Most often these are ordinary financial pyramids, or scammers. They often wishful thinking in order to attract as many people as possible, for their own selfish purposes.
1. Save some of what you earn
Almost all people spend everything they earn. This is where the main mistake lies. In order for wealth to begin to grow, it is necessary to constantly. At first it will be a small amount, but each time it will increase. And you will see that your savings are gradually growing.
2. Control your expenses
All people earn differently. And their expenses rise in direct proportion to their income. You need to make a list of priority needs. Do not confuse your needs with your desires. A person has many desires and he is not able to satisfy all of them, no matter how much money he earns.
Plan your budget so that you have enough money for essential needs, pleasures and worthy desires. But be sure to make sure that the expenses do not exceed the planned ones.
3. Invest.
If the money is at home, it is dead weight. The accumulated money should work. Every ruble should bring income. And this income will also generate income. And so on. As a result, your funds are able to bring.
By investing $ 300 monthly at 15% per annum, you will earn a million in 30 years.
And if you invest at 20%, then you will earn the first million in 20 years.
4. Protect your capital
Invest your money only in reliable projects. You do not want to lose everything accumulated over the years. You can divide all your money and invest in different areas with different levels of return (and, accordingly, risk) - bank deposits, bonds, stocks, mutual funds, etc. But still, the largest part must be placed in risk-free operations.
5. Have your own house (apartment)
For those who rent housing, this is a constant expense item. They pay every month, year after year. And as a result - in a few years, nothing in this regard has changed for them. Money goes nowhere. Take . After all, mortgage payments are almost equal to what you pay monthly for rent. But here you will pay for your own, and after a while - you are the owner of the property, and the released money can be directed to your personal needs or invested to generate additional income.
6. Ensure a dignified old age
What is the average pension now? Ten thousand? Maybe twelve? Not much. You want to eke out your existence on this money. Of course not. So why are we not taking any action to remedy this situation. All you have to do is invest some money and don't touch it until you decide to leave your job. By retirement, the income from the amount you have accumulated will significantly exceed your official pension and will provide you with a decent standard of living.
By investing only $100 monthly at 20% per annum, in 15 years you will have more than $100,000 in your account.
7. Improve your professional skills.
“For a job that everyone can do, they get paid like everyone else.”
Show more interest in work, show perseverance and perseverance. And then the result will not keep you waiting. Show management that you are a very valuable and irreplaceable employee.
Take a look around, take a closer look at your work colleagues (and yourself too). Most people do their job in a slipshod manner, doing the bare minimum.
Good employees are worth their weight in gold. And the employer is always ready to pay you more. But if there is something. For the result you have shown, for the desire. For new ideas and initiative.
Are there wealth rules that can help a person become financially secure? Undoubtedly yes! A set of such rules is spelled out in an accessible and interesting manner in the book of George Samuel Clason - "The Richest Man in Babylon".
The Richest Man in Babylon book
After all, all of us, for sure, have heard these rules, we know about them, but very often we forget to apply them in our lives.
Even though The Richest Man in Babylon was written over 100 years ago, the advice in this piece will remain relevant for a long time to come. This is confirmed by the fact that it has been translated into many languages and is still reprinted, having had millions of copies in the past.
Wealth rules from ancient Babylon
The author in the style of oriental stories from ancient Babylon brings to us simple but effective rules for achieving wealth, applying which every person can enjoy financial freedom. This is the foundation financial literacy for everybody!
Rule number 1. Start filling your wallet
In the language of the hero from the book: "Out of 10 coins in your wallet, spend only 9, and save one". In our articles, you have repeatedly noticed that the basis of material wealth is "10% rule". It really is!
The first step to your financial security is the ability to save some money from your income. AT this case is 10% of it.
If it seems to you that the deferred amount is insignificant, then try to calculate what it will become in 1 year. And in 3-5 years? We are sure that this amount of capital will inspire you more to comply with the first rule.
Rule number 2. Control your expenses
"Rich is not the one who earns a lot,
but the one who spends less than he earns!
Proverb.
This proverb is known to many, but few perceive it as a rule - how guide to action. It is these few who become rich people.
If it's hard for you to resist buying "on emotions", then learn to think like this: think about how many hours, days or even years you need to work to earn on this purchase?
Now answer honestly to yourself: are you ready to give up these hours, days or years of your life for the sake of this purchase?
You can always earn money, increase it (especially if you apply all the rules of wealth from this article), but time cannot!
Rule number 3. Increase your wealth
If you have learned to save a portion of your income and have begun to control your expenses, then it's time to move on to the third rule! Its meaning is that money that is simply put somewhere under a pillow or in a jar will not make you rich.
Money should work for you!
It is those same 10% from our example that can multiply and increase your investment capital. You only need to choose an investment instrument. Start study the science of investing and you will find that there are many opportunities for the growth of your capital.
Rule number 4. Keep your capital from loss
This rule of wealth is closely related to the previous one, as well as to the very first one. How?
- If you simply accumulate money and do not invest it, then your capital will slowly dwindle under the influence of inflation.
- If you start investing your money in everything indiscriminately and understanding, then over time you may lose some or all of your capital.
That is why, when investing your savings, you yourself should understand the basics of not only financial literacy, but also investment. And don't be afraid to ask for advice. by practicing professionals in this area of activity.
It will be much better when you learn from the mistakes of others, and not from your own!
Rule number 5. Improve your home, your life
Your home should be "profitable enterprise". What does it mean? Strive to improve your home according to your income. By landscaping your home, you increase the level of your own moral pleasure (happiness).
In turn, this encourages you to keep increasing wealth. It turns out a kind of closed system of happiness.
Rule #6
One of the goals in compiling personal financial plan it may be to provide yourself over a long period of time with such investment income that could cover all your needs without the need for you to go to work.
To put it simply: "Prepare a sleigh in the summer, and a secure old age from a young age!"
This golden rule of wealth is neglected by many, and in old age they regret that they did not take advantage of certain opportunities or advice in their time. And lost time, as we already know, not return.
Rule number 7. Constantly improve your skills
For a novice investor, it is important to increase your skills, both in professional activity and in investment:
- By improving your skills at work or in business, you will be able to earn more income, which means you can save more money for investing, have more fun according to wealth rule number 5. It will also allow you to save more time on personal matters, achieve financial freedom faster.
- By improving your investment skills, you will be able to get more return on invested capital, reduce the likelihood of its partial or complete loss.
3 secrets of wealth
If you completely compress the entire content of the book, you can select 3 main secrets of wealth, laid down in its meaning:
- Proper budget allocation.
- Resistance to "emotional" (momentary) temptations.
- High degree of patience.
gambling people
By the way, J.S. Clason's book talks not only about the rules for achieving wealth, but also about happiness, as well as luck. Gambling people should read it to find out where luck lives.
Having reached these lines, think about which of the rules you already know and apply? Which ones were not known before or were known but ignored? Also consider how following all the 7 golden rules of wealth will help you achieve financial security?
Most people want to teach their children the responsibility of becoming enough for themselves and succeeding in life. However, very few actually accomplish this task. Why? Because, as parents, we only pass on our experiences and outdated notions of what “responsibility” is. For us, it means just getting a job, saving some money, and maybe getting a car, or something important enough. Hopefully, the following seven rules will open your eyes and help you teach your children to avoid the pitfalls that have robbed many people of their financial success opportunity.
Wealth creation. Rule 1: Postpone marriage.
Your biggest obstacle to wealth is yourself. Too often people live lives that don't create wealth and then become disillusioned with the "system" when it's really their fault.
One of the most important financial decisions you will ever make is getting married. Putting it off for just a few years can save you a decade of disappointment. Your first goal should be financial independence, with virtually no debt, with working investments. If you have these three things, your chances of success are dramatically increased by starting out on equal terms (after all, the number one reason for divorce is financial problems).
Wealth creation. Rule 2: Debt is a disease.
With few exceptions, debt is a form of slavery, and a disease that eats away at the borrower. A few years ago, a young college lady shot herself because she couldn't pay off a $2,300 loan. This extreme example testifies to the power of money in people's lives. Imagine your life without debt: your car, your house, your education, everything is paid in full. Is not that great? If you seriously want to become rich, pay off your debts, this is the number one task.
Wealth creation. Rule 3: If you don't like where your parents are, try to act differently.
The old adage says "it's crazy to do the same thing over and over again expecting different results" is as true today as it was in the days it was written. If you don't like where your parents are and what they did at your age, stop doing the same. As children, they taught you everything they know about money. Many people create their future based on their knowledge of money. In order to become financially successful, you must do something different than your parents. Otherwise, your fate will be similar to theirs.
Wealth creation. Rule 4: When you start working, look for the highest paid employees.
If you are not yet working and are thinking about getting a job in the near future, it is important to take a look at how much the highest paid worker is earning in the place where you plan to work. This will give you an idea of what you can look forward to as you advance. If the CEO is making $30,000 a year, then you have no chance of making six figures. Choose a job that suits your financial needs.
Wealth creation. Rule 5. Do what you love and get paid for it.
Many people do what their parents did, the parents of their parents, in general, they continue family traditions. One day, these doctors and lawyers wake up in the morning and find they hate their jobs. Choose a profession that you love and you will never have to regret it.
Wealth creation. Rule 6. Understanding that money is a myth.
Money is nothing more than a piece of paper. When you understand that any power you experience from money is only valid when you have a relationship with money, you suddenly become free from the constant pressure and stress of thinking about money. Especially in times like these, where you control your money ten, fifteen, or twenty years later by stopping checking your portfolio every day. You won't get anything out of it other than stress.
Wealth creation. Rule 7. Your new product is not labor, but ideas.
With the advent of the internet and other technological advances, you are no longer limited to supporting yourself or earning a living from manual labor. The only limit you have is your own imagination - your ideas are the most valuable thing you own. Every man, woman and child is a life seller: unless you own a business or an investment, you sell your manual labor to a company in exchange for a paycheck. Change your product. The gap between the rich and the poor is indeed growing every year, but not because of inequality or other injustice. On the contrary, because of rich people's understanding of money and how to use it. Capital is a seed, learn how this plant grows and you will have a great harvest. When you do this, you will be in control of your finances, not the other way around.
