Once in a while we go to other places and find tips for building wealth. This time we found the following. Enjoy! The link for the source at the bottom.
The Secrets to Financial Freedom and Building Wealth
Imagine a world where you never worry about running out of money, where you're not tied to a monthly paycheck, and where money works for you instead of the other way around. Welcome to the world of Financial Freedom, a place that might seem out of reach for many but is actually achievable for those who understand and follow the rules of money.
Achieving Financial Freedom is like playing a game. There are goals, players, penalties, and for the best players, trophies. But like any game, we need to follow some rules to win. Only then can you become the champion of this game and achieve Financial Freedom. Otherwise, you'll keep running in the race of the lower and middle classes.
In this post, we'll share some money rules followed by wealthy people worldwide. By following these rules, you too can achieve financial freedom and success.
Rule #1: Focus on Making More Money than Saving Money
Saving money is the first step towards Financial Freedom. Most people develop a habit of saving and investing in safe options like mutual funds. However, they often fail to focus on increasing their income, which is crucial.
Do you want to drive your dream car at 60mph or at 26mph? If you aim for the latter, along with saving and investing, you need to focus on increasing your income significantly. Your skills and services can earn you more money in a few months than years of savings. While saving is essential, investing in your skills or business is crucial for faster growth. For more on this, read MJ DeMarco's book "The Millionaire Fastlane."
Rule #2: Don’t Chase Money, Attract Money
The Law of Attraction applies to money too. Instead of chasing money, focus on becoming a person of value. Look at Elon Musk; he focuses on innovation, and money follows him. When you become a person of unique ideas and influence, money will naturally gravitate towards you. Remember, money is not pursued; it is attracted by the person you become.
Rule #3: The More You Learn, The More You Earn
Thanks to the internet, you can access valuable knowledge for free. However, knowledge is only useful when applied. The more you learn and apply, the more you earn. Invest in learning new skills and financial knowledge. Even Warren Buffett agrees that the best investment you can make is in yourself. Bill Gates reads 50 books a year because he understands this principle.
Rule #4: Start as Soon as You Can
The early bird catches the worm, especially in investing. Starting early gives you a significant advantage due to compounding. Consider Mark Zuckerberg, who started Facebook in his early 20s and is now one of the youngest billionaires. Start investing now, even if it’s a small amount. It’s about how long you let that investment grow, not just the initial amount.
Rule #5: Track Your Money
Do you know where your money goes each month? Start tracking it. Understanding your spending habits allows you to make informed decisions and align them with your financial goals. Differentiate between needs and wants, and stick to your monthly budget. You should know where every penny goes, whether on paper or using software.
Rule #6: Stay Poor Until You Really Get Rich
Embrace frugality even when you start earning more. Ingvar Kamprad, the founder of IKEA, lived simply despite his billions. Wealth should be a tool for creating opportunities, not immediate gratification. Your goal shouldn’t be to appear rich but to become rich. Spend less than you can afford, and only buy luxuries when you can do so without financial strain.
Rule #7: Always Be the Boss of Money
No one aspires to be an employee forever, yet many become slaves to loans and debts to impress others or fulfill temporary desires. Stay away from debt and avoid the habit of taking loans. This will prevent you from becoming a servant to banks and allow you to retain control over your finances.
