- Pay Yourself First: Most people earn and spend their salary by living paycheck to paycheck. A rich person always pays himself first.
2. Mindset is Everything: Your Mindset and Attitude matters the most in Life or in Profession. Mindset is what separates the best from the rest.
“The single most powerful asset we all have is our Mind. If it is trained well, it can create enormous wealth”.
3. Buy Assets first not liabilities: You must know the difference between an Asset and a Liability. An asset puts money in your pocket. A liability takes money out of your pocket.
“The rich buy assets. The poor only have expenses. The middle class buy liabilities they think are assets”.
4. Saving and Investing are different: Saving is to put your money to rest. Investing is to put your money to work.
Saving weaken the purchasing power while investment will increase the value of your money. Invest your money in Stocks, real estate, businesses to beat the inflation.
5. Learn Taxes: If you are rich and lack financial literacy, you will end up paying a lot of taxes. Many People earn, pay taxes and spend. The rich knows how to save tax, so they pay fewer taxes.
6. Do not rely on a Single Source of Income: Most people rely on a single source of income. You never become rich and financially secure if you are one of those. You should create multiple sources of income.
You will be in better position even if you face some financial crisis if you have multiple income streams.
7. Take Risk: Unless you take the risk, you cannot grow. If you want something big you need to take risk in life.
8. Become Financially Literate: Money plays an important role in life but our school doesn’t teach about how to make money, manage money or invest money. Money without financial intelligence is money soon gone.
Cash flow tells the story of how a person handles money. You should learn to manage and invest money to become Financial Literate.
9. Power of Association: Choose your friends carefully. You should associate with Positive, Passionate, like minded people who talk about ideas but not about People. You should be with people who add value to your life.
10. Control Emotions: Emotions plays a crucial role in life, even in managing money also. You should learn to control your emotional balance and be focused on accomplishing your financial goals.
“ People's lives are forever controlled by two emotions: Fear and Greed".