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The 7 Laws Of Money And Wealth
Money and wealth is something that anyone can acquire in their lifetime. It only takes the knowledge and understanding of a few simple laws in which it is obtained.
Here, on this page, are those laws. Anyone seeking great wealth should learn these laws and start applying them in their daily lives. While these laws are simple to learn, it takes great discipline to apply them. Many people who have desired wealth have fallen short because they have failed to follow one or more of these seven laws.
Do not let such a thing happen to you! Start your journey towards wealth by following these powerful laws. For they are short in words, but long on wisdom…
Law #1: The Starting Point Of Riches
The first law is very simple. It may even seem like common sense to you. However, don’t let it’s simplicity fool you. If you fail to follow this simple law, then quite frankly, there is no need to read the rest of this page. You will likely fail on your quest towards riches.
You see, the amount of money that one earns is a poor indicator of how wealthy they are. Instead, it’s what one does with their money, and how much they save that really matters. With that being said, here is the first law of building extraordinary wealth…
For all of the money that you earn, first put aside 10% to pay to yourself.
It’s amazing how we forget to do this as we go about life. We pay everyone else, the bank, the government, the landlord. We pay all of these people before we ever pay ourselves. Don’t let this happen to you anymore. Pay 10% to yourself for yours to keep. Then do everything you can to live off of the rest and pay those that you need to.
Just think about how much money you would have right now if you applied this law for your entire life. I would imagine that you would have far more wealth than what you do right now. Don’t let the depress you. Simply let this realization excite you for how much potential this law will have towards your future.
Here’s the amazing thing about saving 10% of everything that you earn. You won’t notice any difference from before as you go about your day! Your spending will seem to be about the same that it was for. However, because you paid yourself first, you will have started your journey towards great fortunes and financial success!
Law #2: Control Your Spending
This is likely the biggest reason why so few people become wealthy. Many people seem to have this deep desire within them to keep spending and spending. Usually on things that they could easily live without.
It doesn’t really matter how much money you make, you will be poor all of your life if you can’t follow this simple law.
Probably the greatest example of this is the well-known boxer Mike Tyson. During his career, he made hundreds of millions of dollars. However, he was one of the biggest spenders there was. To give one example, he spent over $200,000 on cellphones and pagers in a span of only 3 years. Despite all of his earnings, he became in debt for millions of dollars. Making him one of the poorest people on the planet.
Many people believe that money would solve all of their problems. But in reality, it would probably only make their problems worse. When someone acquires a large sum of money, such as a lottery winner, who isn’t disciplined with the law of controlled spending, their fortune quickly disappears.
I suggest to you to learn this discipline now while your fortune may be low. By learning it now, you will prevent yourself from greater problems in the future when the fortune of large sums of money start pouring in.
Law #3: Make Money Earn Money
I hope you become a master of your spending and paying yourself 10% of all that you earn. Because it’s only then that you should continue your journey with law #3. Once you are ready, you can then start to think about what to do with the 10% that you have saved.
What we need to do with this 10% is find some way to make this money earn more money. Let this money work as if it were a slave out to serve us. What we need to do is make this slave make more slaves. And then those slaves make even more slaves. So that we have a large abundance of slaves working hard to make us more money.
Does this sound impossible? Does it sound too good to be true? I assure you, it isn’t. In fact, it can be done by anyone, and it can be done in a variety of ways.
Without having you think too long, there are two ways that I know of that allow your money to make more money…
The first, is starting your own business. You can use your savings to start a business that you are highly educated in. It’s only then, that you should start this business. Because if you start this business before you are educated in the field of business, and if you don’t have complete confidence in the product being sold, the earnings you have saved will be gone.
Business is a risk, but it can have huge rewards. You can set up a system that will pour money into your bank account. You can then use those earnings to start yet another business. Which will then lead to even more money in your bank account.
You can start as simple as you like. It’s kind of like the board game Monopoly if you are familiar with it. You can buy a green house. Then another. Then another. Then trade all of them in for one red motel. It really can be that simple. Many of the huge companies that you see today were not nearly as big when they first started. Dell computers started in Michael Dell’s dorm room. Since then, it has grown to be quite bigger than that!
You can start small in your business. And slowly start to grow it as you gain knowledge and experience. This is how many businesses become the large companies that they are today.
The second way to have your money earn more money is through investing. With smart investing, you can build wealth to levels that you never thought possible.
Investing and the power of compound interest are a great example of money earning more money. Any money that you properly invest in will earn you even more money. Then the money that you invested, in addition to the money that was earned, will then start to earn you even more money.
This cycle continues over and over again. It starts out small. Which is why so many people don’t take advantage of it. But over time, the earnings begin to increase more and more rapidly. It will truly be a sight to see when your patience starts to pay off.
Every wise person takes advantage of compound interest and making their money earn more money. This is the third law of money and wealth. Do not let it go unnoticed.
Law #4: Protect Your Money From Loss
One thing is for certain, it’s much easier to lose money than it is to make it. It doesn’t matter how wealthy you are, you can lose it all in minutes if you really want to. You could just walk on the street and hand all of your money over to the first person that you see. Gee, how happy would they be?
The problem that gets so many people into trouble is that they wish for money instead of finding realistic ways of acquiring it. You can see this for yourself if you have ever been to Las Vegas. Thousands of people wishing to acquire wealth by wasting money in games where the odds are against them.
With law #4, you must be smarter than that. You must value money and realize that it is too precious of a commodity to waste. Risk is OK. However, you should only take risk when the odds are stacked in your favor. And also when there is a profitable return for your success.
There are other ways in which your fortune can disappear. For those happenings, you should be properly insured.
Buy insurance on anything that you could not afford to repay, should something happen to it. By doing so, you will be protected from any unfortunate events that may happen. It doesn’t matter how unlikely the event, if it would wipe out your fortune if it did happen, get insurance for it.
I will let you use your own judgment when it comes to other means of protection. Just make sure that your years of wise uses of money does not come crashing down because of one small error in not protecting your fortune.
Law #5: Make A Wise Investment
You should make it a priority in your life to have a home that you have paid for in full. By doing so, you will dramatically reduce your cost of living. You can then use this additional money to find ways to have it earn even more money for you.
It doesn’t have to be a large home. In fact, the smallest and least expensive home that satisfies you is your best choice.
Many people fall for the advice from bankers that you should buy a larger home because of the tax deductions from your mortgage. The more money you make, the bigger the home you should buy, as they suggest. The problem with this is…
You shouldn’t seek advice from someone who is making a profit from your decision. The reason bankers give you this advice is because that is how they stay in business. A home is a huge asset. But it is a huge asset to the banker, not you. Don’t ever do something because of the tax benefits alone as they suggest. Buy a home? Yes! But don’t be fooled into thinking that a home is your greatest asset because it is not.
If you follow the seven laws, you will have assets far greater than your home. If a large home is what you seek, pay for it only when the time comes that you are financially free and will continue a comfortable style of living.
Remember, own your home. However, do not be fooled into thinking that it’s your greatest asset. There are assets that will be worth far more to you in your promising future.
Law #6: Plan For The Future
Don’t ignore the fact that the time will come in your life where you will be unable to work at the rate that you do now. Age will slowly start to impact you and you will be contemplating the thoughts of retirement. Also, don’t assume that the government, your company, or some other source is going to take care of you when you retire…
You must plan in advance and take care of yourself!
This sixth law shouldn’t go unnoticed because if you do, it can lead to serious regret later. I don’t care what your age is right now, whether it be six or sixty, start taking immediate action towards planning your retirement.
Start building a nest egg today that will allow you to live the lifestyle that you truly desire when you reach the age of retirement. The greatest advice about retirement planning is this…
The sooner you get started, the better off you are going to be!
Set up a savings program which gives you the security and protection you need for your later years. We should all be living the good life in our final days. But it is up to us to make sure that it happens.
Law #7: Increase Your Earning Power
The seventh and final law of money and wealth is probably the most important. And that is to increase your earning power. To improve your knowledge and wisdom so that in the event of misfortune, you will be able to use the skills you have acquired to get back your losses.
If you ask a large group of people what they would rather have, wisdom or wealth, nearly all of them would probably say wealth. However, as the saying goes…
“If you give a man a fish, he eats for a day. But if you teach him how to fish, he eats for a lifetime.”
Always be a student, even long after your days of schooling are over. We humans have an incredible capacity for learning. There’s no limit to what we can learn in a lifetime. If you can spend just a little bit of time each day learning something new, you will be amazed by how much you will know in a span of only a few years.
There is one quality that nearly every successful person has. And that is that they are avid readers.
Start today by building your library of great books. Become a person that craves to learn something new. There are many things that you can do wrong with money, but lack of wisdom is a far greater mistake.
You can take away all of the money from the greatest minds of our time and they can immediately start to rebuild their fortune if they so desire.
This is what you need to be able to do with yourself. Have such an unlimited quantity of knowledge that it doesn’t matter what happens to your wealth. You can give it all away if you wanted and be confident in knowing that you could get it all back.
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