Since everyone on the planet is chasing after money, it is easily thought to be the benchmark for success. True? Overall, just like any other thing worthwhile, banknotes don’t come rolling easily. You must understand the dynamics of attracting wealth, maintaining it, and letting it multiply by itself.
On the bright side, money's fundamental principles are basic. In fact, they've been the same for hundreds of years, and in just a while, we shall be breaking down for you five (5) of the most important rules you need to know. They will help you generate wealth beyond your wildest imagination if you learn and practice them by heart.
Rule No 5: Constantly Learn and Improve
If you wish to earn more money, you must become smarter and up to date with the latest business trends, tools, and market strategies. This could be through reading books, online courses, YouTube videos, and so on. This kind of education should be specified, though. You don’t want to read books about cats, and you want to be an astronaut. Well, you get the point.
Look at the potential return on investment for every skill upgrade then get indulged (Reading). That way, you’re putting yourself on the path to more wealth.
Rule No 4: Protect your Wealth
Despite the pandemic, there are still endless investment opportunities available to you. Nonetheless, the most important thing is to remember that losing the principle means that all your hard work to earn that money was for naught. Flushed down the drain just like that.
On our list of five (5) simple rules of money, you should know and often choose assets that you have thoroughly researched and are sure would increase in value. Just make sure you don’t make hasty, hazy investment calls.
Rule No 3: Invest
Money in a bank account loses value over time due to inflation, which averages about 3% annually. That said, you’ve got to invest as much of your money as possible. It could be stocks, shares, real estate, and precious metals, whichever you find appealing. You purchase properties, which then increase in value as you sleep, with no extra time or effort on your part.
Make use of compound interest as well. This is using the funds you get from your investments' dividends to purchase more assets. Your money makes more money for you, and the new money makes even more money for you.
Rule No 2: Live Within Your Means
You’ve got to fight the temptation of spending more as your income rises. It’s tough, I know. Often, ensure that your net costs are at a safe margin below your revenue. When your salary rises, just raise your spending by a limited amount; then the remainder can be saved or invested.
Rule No 1: Save
To be more accurate, I mean start by paying yourself. Your willingness to do so underpins the whole wealth-building operation. Saving as much of your money as possible increases your net worth tenfold with time.
The bottom line is, have full control of your finances. If you don't have complete sway over your doe in terms of collecting, spending, defending, budgeting, borrowing, insuring, and so on, it will control you and you will never be able to gain financial freedom.
