7 Steps To Riches

Every person has ambitions and dreams. To fulfill those ambitions and realize those dreams, one must learn how to properly manage money.

The basic principles of effective money management are as follows:

1.) Save at least 10% of EVERYTHING you earn for an investment fund for the future

2.) Learn to live on 90% or less of your income

3.) Invest your accumulated capital into projects that will provide a safe, steady income, taking full advantage of compound of the interest received. “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” – Albert Einstein

4.) Invest only in areas in which you have expertise or with people who are experienced and who you can trust. Only work in your circle of competence and with people you trust.

5.) Buy your house, so you don’t waste any money on rent. Stop paying others’ mortgage and pay your own.

6.) Have a realistic insurance program. Always be prepared for disaster. Hope for the best and prepare for the worst.

7.) Always keep working at various ways and means of increasing your income. Education, education, education. Work harder on yourself than you do at your job.

Money isn’t everything, but it sure gives you freedom and the ability to do what you’d like. Building wealth allows you the freedom to do what you want, when you want. Stop thinking about how unlucky you are, and put these tried and true methods into practice to start building a nest egg. Follow the above rules, and I guarantee you that in less than 3 months, you will have a sizable surplus of capital.

Time

All men actually have this in abundance, but only a few put it to use making themselves wealthy. Instead of looking for construction, useful ways to apply the resource of time, many people fill their lives with diverse activities which simply help them to pass the time.

Study

There are two kinds of learning that are useful to anyone seeking to generate wealth – learning about specific subjects and learning how to find out what is not commonly known about any topic. Both kinds of learning are useful and valuable. There are several basic principles which apply to the acquisition of wealth.

Good Luck

Good luck comes to the person who accepts opportunity.

To attract good luck, take advantage of every opportunity that presents itself. The person of action, who is able to jump at whatever business propositions are presented, is in a stronger position to attract good luck than the type of person who sits back and waits for everything to be presented on a plate.

Paraphrased from The Richest Man in Babylon by George S. Clasen.

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