The Five Rules of Money
If you remember anything that I have written, I want you to remember this. The key to becoming wealthy is through discipline and perseverance. There are certain rules to money that must be respected and adhered to.
Rule #1: Start saving at least 10% of what you earn for a living. Save more if you are able, but not so much that you can't afford living expenses and live in comfort. It is well known that those with money find more opportunities to make their investments grow as opposed to those who don't. I know you may be thinking I don't need to hear all this, but the most important thing you get from consistently saving each week, month or whatever interval of pay you receive is discipline. Discipline may be THE most important trait for any investor to acquire.
Rule #2: Find profitable investments. It's great that you've got that nice little pile of money sitting there now, but unless you do something with it, it will only be a little pile. Or worse, a victim of inflation!
Rule #3: Follow sound investment advice. Believe it or not there are people out there with bigger and prettier piles of cash out there than you and they have a wealth of knowledge on tap. Some people invest in real estate, some stocks, others forex markets or even online marketing. I consider this wisdom to be worth MUCH more than the streams of income themselves. Ever hear about those people who win the lottery? True horror stories! These people usually have very poor financial principles and usually end up how they started, broke (if they are the lucky ones, yikes)! Find those who know how to make money and learn from them (I heard that optiontrader guy knows a thing or two ;-)).
Rule #4: Don't invest with those who aren't experts in their field. Now this sounds pretty obvious, but you would be surprised at how many people violate this rule. I don't know about you, but I'm not going to ask my mechanic how to make money online. I'm going to ask him if that sound under my hood is a belt or a ticking time bomb!
Rule #5: Don't follow get rich quick schemes or give in to sudden impulses. I know they say you will get rich quick by making a cool million in the first year without lifting a finger, but in all probability; you aren't. I know the guys (or girls) just called you up and demanded your presence for a lavish night on the town, but unless you planned this out already with your finances in mind, you can wait until next time. Again here we talk about discipline *Crucial*.
If you examine these five rules you will notice that they build upon each other, one after the other. Follow these five rules of wealth building and you will be further on track to financial prosperity in no time! Now get out there and DO IT. Till next timeâ€¦