They say that money makes the world go round. But for many, it is a source of stress, confusion and frustration. We chase after it, plan for it and worry about it, but we often lack a clear understanding of how money works.
Knowledge is power, especially when it comes to your finances. That’s why I’m sharing with you 10 basic money rules that can change your relationship with wealth and help you rewrite your financial story.
Rule 1: Money in itself does not create wealth, but it is the tool with which you can achieve your goals
Have you heard the saying “money changes people”? Not quite true. Money acts more like a magnifying glass and shows the qualities you already have. Are you generous? Financial security allows you to live out this generosity on a larger scale. Are you irresponsible? Easy access to money can reinforce this tendency. The key is to know your existing money habits and make conscious choices so that money reinforces your positive attributes.
Rule 2: Break the cycle: don’t spend more than you earn
Living paycheck to paycheck and relying on debt to close the gap is a recipe for financial disaster. This cycle keeps you trapped, constantly paying interest instead of building wealth. Free yourself by creating a budget, tracking your spending and putting needs before wants. Remember, delaying gratification is a powerful tool. This new gadget may be tempting, but the peace of mind that comes with financial stability is much more valuable.
Rule 3: From hunter to magnet: Attraction to abundance
Change your mindset from chasing money to attracting money. Instead of desperately looking for quick fixes, focus on developing valuable skills and expertise. The more valuable you are to others, the more they are willing to pay for your services or knowledge. Invest in yourself through education, training and continuous learning. As your value increases, so does your earning potential.
Rule 4: Time is your most valuable asset: invest wisely
Many people believe that you need money to earn money. But the truth is that time is often the more valuable resource, especially at the beginning of your financial journey. While others are focused on instant gratification, invest your time in learning, building your skills and preparing for future success. Patience is the key.
Rule 5: Knowledge is power, but applicable knowledge is priceless
Not all knowledge is the same. Focus on acquiring knowledge that can be directly applied to your life and turn into value. Whether you’re learning programming, mastering a new language or understanding the intricacies of real estate investing, prioritize skills that have a clear path to financial gain.
Rule 6: Escape the chains: Become the master of your money
Debt can quickly become a financial prison. The moment you borrow money, your freedom is restricted. You are now working to pay creditors and not pursuing your own dreams. Break free from this cycle by creating a debt repayment plan and focusing on high-interest loans first. Remember, financial freedom is worth the sacrifice.
Rule 7: Seduction vs. control: Be the smarter partner
Money can be seductive and promises instant gratification and luxury. Don’t be dazzled by his charm! Make conscious decisions and avoid impulsive spending. Think about your long-term goals and how each purchase fits in.
Rule 8: Plant the seeds of wealth: watch your wealth grow
Money does not appear as if by magic. You have to sow the seeds and nurture them so that they grow into a rich harvest. This means investing your money wisely, be it in shares, crypto, bonds, real estate or your own company. Remember, successful investing requires patience, research and a diversified strategy.
Rule 9: Keep your money moving: Don’t let it get lazy
Just letting your money sit in an account or savings account is like neglecting your garden. Inflation is slowly eating away at its value.
To keep your money growing and working for you, you need to keep it moving. This means that you invest it to generate returns or use it to create assets that generate income.
Rule 10: The foundation of financial freedom: live below your means
This may sound like the simplest rule, but it is the cornerstone of financial stability.
To get a grip on your finances and achieve financial freedom, it’s crucial that you spend less than you earn. The gap between your income and your expenses is your golden potential to save, invest and build up a financial cushion for the future.
There are 5 more rules in this video
