|how to make money|
8 most important rules of money
How to become rich or How to make money lots of people have these questions. So here telling the truth of rich people.
Who is the fastest self-made billionaire ever? While it took warren buffet fifty-five years to hitch the billionaires club, Jay Walker did it in less than a year. Jaywalker launch priceline.com web during the .com bubble and his net worth instantly jumped from zero dollars to a billion dollars. But that wasn’t sustainable because when the bubble burst, his net worth crashed as well while Buffett is still on the top of the list and he doesn’t seem to go anywhere anytime soon. Forbes cover and that’s the kind of wealth you want to build. The game of money isn’t easy, it's tough, competitive, and ruthless and if you don’t know the rules, you are doomed to fail. The problem with most people is that, so they might work hard their entire lives but end up poor at the end of the journey because they don’t know how the game works, so if you want to find yourself on the other side of the coin. You better master the rules.
1. Money Does Grow On Trees
I am sure that many of you have been taught the opposite but the reality is that if you don’t operate from this perspective, you will forever be poor. You can’t trade your time for money your entire life, that’s why you need to plant trees that will earn you money when you are not there. It’s not as easy as it sounds, do you know how difficult it is to plant a tree, first you need to plant the seed, but the seed is useless if it's not planted in nutrient-rich soil. The tree isn’t going to grow by itself, you need to water it and take care of it and it's not going to grow overnight. Some trees take longer to grow such as 10-20 or 30 years. But once it grows up, it will keep producing fruits with minimum effort. The same goes for assets, once you build up a business or save up enough to make a good investment, it keeps generating income even if you are not there. Because at some point you might get old, sick and you won’t be able to sustain your job, so even if you are making 500 bucks an hour, you could get back poor instantly if you haven’t planted enough trees in your garden.
2. There is No Limit to how much you can spend
I remember, when I was living paycheck to paycheck, I was on an extremely tied budget, I use to think that if I would be making evens lightly more than I do now, I will start investing, but what ended up happening is that I just started spending more. When I started making multiple times more, all that happened is, my expenses just kept getting higher and higher. If you do not budget and discipline yourself to stick to a certain budget, you won’t be able to economize to speculate notwithstanding you create a 100K a month, there square measure infinite ways that you'll pay that hundred grand. So, instead of constantly pushing that investing line higher and higher, discipline yourself to stick to a smaller budget.
If Elon Musk might survive on a dollar each day in u. s., you'll positively survive with many hundred bucks. aren't getting Maine wrong, relish the cash you attained together with your labor, travel, or do no matter what you want, however, stick with a budget that’s not up to your financial gain as a result of you have got to accumulate assets.
3 Money is a lifelong game
When I got serious about money and investing. I have had this image in my mind that when I start making so and so, I won’t need to stick to a specific budget and I will finally retire and enjoy the fruits of my hard work.
What happened when I started making that much is that I realized that’s not enough and I have to make more, if you stop managing it, it'll stop generating financial gain Just because you purchased a house, you instantly won’t find tenants. If you don’t take care of it, it might even turn into a liability.
4. Money won’t solve your insecurities
We all have insecurities and a lot of times we buy that expensive car or move to a bigger house or buy a newer phone because we want to be accepted or admired by society. That expensive car will make you feel good for a week or two, but then it will become normal but your insecurity won’t go away so you would want a better and more expensive car. It's a never-ending cycle that keeps people who make a lot of money but become poor.
If its acceptance you are seeking, then learn how to better manage your emotions. The truth is that your insecurities will drain down your bank account but will still stay there. Instead, improve your social skills, learn how to boost your confidence. I am not saying you shouldn’t buy an expensive car or a private jet. Go ahead and purchase whatever you want in your life but don’t do it to fill your insecurity. They are the best and cheaper ways to do that.
5. Don't let anyone know that you have money
We love to brag about how much money we make at the end of the day, in the age of capitalism, that’s what defines your social status, at least that’s how most people think, but the problem is that Money is like a magnet, Suddenly people will be nice to you, everyone would want a piece of it. Of course, it will make you feel good and respected but that will come at a price that’s not worth it. And if they won’t be able to get it nicely, they will sue you and get it the hard way. That's the reality we live in.
Even if you God make billions of dollars for you a year, don’t let anyone know! Stay humble and claim, and keep making more or and more form that.
6. Greatest wealth transfers happen during crises
When the economy crashed in 2008, the unemployment rate skyrocketed because the companies couldn’t keep paying the bills. Millions of people became jobless, homeless, and poor. However, some people aggressively began investing and became much wealthier after the crises because the biggest transfers of wealth take place in crises.
If you are ready to grasp the opportunity, you can become an overnight success. Remember Jay Walker whom we talked about at the beginning of the video, who joined the billionaires club in under a year, took advantage of the .com bubble.
One example - Mark Cuban, He even was said, he lucky to become a billionaire because if it wasn't for the 1998 financial crisis, he would not be a billionaire, Instead of looking at financial crises as a hoax created by the government or the 1percent to rip off the poor, take advantage it as they do understand how the system works, study the past crises to understand how and why they start and be ready to be on the receivable side when the next one takes place.
7. As you get elder, your expenses will grow
Have you realized that every single year, one way or another you spend more and more?
A hundred Rupees or 10 dollars was a lot of money when you were in your teen, now it very rarely covers your electricity bill. And as you get elder, your expenses will just keep increasing. That's the nature of our lives, especially if you start a family. Most people do not bother themselves about the future because they are making a decent amount of money today, but when their expenses exceed their income they start complaining that they don’t make enough to invest. So if you do not make sure that your income is increasing every year, soon you will trap yourself in paycheck to paycheck cycle that will keep you poor for the entire life.
8. Wealth accumulates overtime
We can’t grow any tree in a day, and lots of people not able to grow wealth in a day. Remember, the earlier you invest, the better with the power of compounding, you can become rich with even a hundred dollars. No wonder why Words greatest investor started investing at the age of 11, what were you doing when you were 11.
Here is a fact, you can make your grandchild a millionaire just by investing $1160, because in 100 years, without a single additional investment, it will grow to over a million dollars. You probably won’t live till then, but I am sure your grandchild will be thankful. Let's say he won’t be greedy and will keep it for his grandson for another hundred years, it will grow to almost a billion dollars.
Of course, It's pointless to wait for so long, but the earlier you start, the faster you are going to reach a position where you will be making enough to not worry about your bills again.
It took warren buffet 55 years to make his first billion and just in 3 years after the first billion to make his second billion. warren made 98% of his fortune after his 55th birthday.
Conclusion Here you go, How to Become Rich these are the 8 most important rules of money that you should keep in mind if you want to get financially free.
Question;- which one is your favorite rule and why from these 8 rules?
Let me know in the comments below. And as always thanks for reading.
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