The 22 Rules of Wealth We Checked (continued)
In issue 98 of our magazine we touched upon On the Principles of Wealth. Surprisingly, the article had a great response, which was reflected in its active discussion, which I invite you to join. Everyone's experience is completely different, but what we all have in common is the desire to be wealthy and self-sufficient, so let's continue this topic and look at 11 more rules of wealth that we have tested on ourselves.
Principle #12. Rely on your luck, but take a justified risk
Fortune favors those who rely on it without taking unnecessary risks. Sometimes our financial goals are so ambitious, and our desire to get everything at once is so great, that we may not notice how we got too carried away and put our whole present at stake.
For example, one of our authors invests in PAMMsHe follows the advice and wants to earn a passive income, excluding investments in the bank. He invests some part of his salary and tries his options. When his income reached 100% per month, there was a reasonable thought: "Why do I work at all?" - he went on vacation, arrived, and PAMM was closed because his deposit was drained...
So, investing is a risky business and, more importantly, we can only influence the result indirectly, so investing everything in such a business, relying on luck and refusing to work, will not be justified. This is not the way to do it!
Principle #13. Manage your finances
Regardless of whether you believe in your future wealth or not, develop for yourself and always strictly follow the rules of managing your finances. Before you know it, the right attitude to your money today will lead you to riches tomorrow.
This point would be similar to Principle #4 that we wrote about in last week's article (see). But there is a slight difference. We don't make an income plan, we make a spending plan. For example, I have five main areas for spending: for everyday needs (food, household, entertainment), for vacations, for unexpected large expenses (if the car broke down), for investments, and for old age. I divide my salary in the proportions I set for myself.
It allows me to know exactly how much money I have, not worry about having to borrow if something happens, plan my vacations, and save for a house in the country by the end of my life 🙂 Also, having a clear understanding of savings allows me to develop, change jobs, and grow financially without stress.
Principle #14. The 20 by 80 Rule
Only 20% efforts yield 80% results and vice versa - 80% efforts yield only 20% results.
This is the most important rule for those who want to dramatically increase their efficiency and the return on their labor. Our activities are usually divided into two parts: what we do very well is what we are good at, and what we have to do - usually small errands or activities that do not generate income, but have to be done. If we cut the side tasks to a minimum and focus on what we do best, it will increase our efficiency by 100%, which is exactly 2x.
For example, I work as a magazine editor, but I can also be an accountant, and translator, and programmer (education allows), but if I do it all alone, you will never read our magazine. So I chose exactly 3 areas, which I do well and do only them, all the rest I have delegated to colleagues. This immediately and significantly increased the level of material offered in our publication and freed up a lot of time for me to develop.
Let's take the job of, say, an accountant as an example. You're great at writing reports and filing returns, and you do a perfect debit and credit, but you still have to be in charge of the housekeeping and handing out paper clips and pens to your employees. These distractions will take you 80% of your time, you'll be accumulating basic work and making mistakes. Try to move away from side duties, also eliminate chitchat during work hours, social networking and personal email, this will help you grow professionally and enable you to qualify for a promotion.
There's a great book on the subject called "Get Out of Your Comfort Zone! by Brian Tracy. I recommend it!
Principle #15. No one is forbidden to be rich
No one is forbidden to become rich. It is not necessary to be born into a wealthy family, graduate from a prestigious university, or get a high-paying job. First of all, it is necessary to have the right attitude to your finances and to strive for perfection.
In the comments to the first part of this article, there were statements like "I save and save, but I don't get rich," and I gave the example of my dad, who set the goal of living impoverished in old age and successfully puts it into practice with the most average salary. So, we make ourselves rich, and if we can't, then we don't really want to!
Principle #16. Keep it positive
Positive attitude is a necessary guarantee of self-confidence. Schaefer recommends having a separate notebook or notebook where you should daily write down five things you did well today. If, all of a sudden, five things don't add up, write down five positive moments of the past day.
This principle has always been a bit foreign to me, so I just go to a cafe with friends and colleagues to celebrate a good month at work or a room turned in. It's never a bad idea to relax a little 🙂 I've always been a bit of an outsider.
Principle #17. Don't forget your health
A sick person does not need any wealth. You need strength and health to strive for wealth. Take care of your health, only a healthy person can enjoy wealth.
Does it matter to you how much you earned that day and how things are going when you have a fever of 40 for the third day? What if you are in the hospital with an acute pain? Do you care about your results when you have a headache day after day? I don't think so...
Take care of your health: eat right, get as much sleep as possible, go to fitness, yoga, gym. If you cannot do it at all, at least throw your legs on the wall for 10 minutes before going to bed (there are restrictions, see the Internet) to relax your muscles and blood vessels. And also read about meditation, 5-10 minutes a day will get rid of stress, tested!
Principle #18. Don't forget about force majeure
Always have a reserve of finances for emergencies. You can lose your job, your permanent source of income, your ability to work, or your stable income. That is why it is necessary to have a financial reserve for at least six months.
...or preferably for a year, so that you have time to get your life back on track without rushing. Start saving for it with your next paycheck, just in case.
Principle #19. Without quality knowledge there will be no decent profits
Fools can only get lucky in gambling, and very rarely. To make a substantial profit, you need good knowledge. Don't stop there: learn, Read, gain new knowledge. In the first part of this article I already recommended investing in education, it is worth repeating.
The better you know your business, the more up-to-date and up-to-date you are, the better your work will be and the more demanded your services will be. Everyone needs an accountant who is aware of all the changes and does all the documents correctly at once! And if you can make a constructive proposal to the management, which will increase the company's profit, you will not be left without a bonus, at least.
Principle #20. Be aware of your competitors
Capitalism is always competition, in which the strongest "survives. In order to become rich, to preserve and increase your wealth, you must always remember that your competitors are around, and you need to be stronger than them. So re-read all the previous principles and get to work!
Principle #21. Don't be afraid of change
Do you think your efforts are undervalued and you are being paid less than you deserve? If you work for that money, that's how much your work is worth.
Not satisfied? Don't be afraid to change something in yourself, in your work, in your life. Move toward your dreams!
Principle #22. What is wealth?
Wealth is not the amount of money you spend. Wealth is the amount of money available to you today.
As an addendum, I would suggest that readers consider whether you are already rich. Maybe you already have everything you need to be happy, and you don't need to spend your free time on another million, but spend it with your family, on a walk, on a trip, or reading a book.
Sometimes it's good to revisit your plans for wealth so that you have time to live the life you dreamed of, not the work you do.
Yes, it is written correctly. But what about those who are already below the poverty line. They have no such item of expenditure as entertainment. What to save money for?
Those who are below the poverty line do not need to save (there is no need to save at all, you need to distribute your income wisely), they need to look for opportunities to earn extra income.
You understand, this does not apply to everyone, everyone's situation on 100% is different, but if health and the situation allows, you have to look for how to earn. If there is no possibility, then you need to look at each individual situation, there is no general advice.
As an option, you could even write reviews or copywriting on the Internet. You could knit socks to order, chop firewood... It depends on who can do what.
I agree. Even sitting at home you can make good money. The main thing is not to feel sorry for yourself and not to seek pity from others. It's frustrating.
Yes, there are many ways to make money online now.
Yes, now there are many ways to make money on the Internet
How about cigarettes? Many poor people also smoke.
Yes, it's getting harder and harder every day to survive in our modern world.
For people who are not rich, it is especially important to count every ruble. What kind of entertainment? It is necessary to crawl out of the "line" first. And then all the other principles should be gradually put into practice.
Valuable information. It should be reread periodically and, of course, not to forget to put it into practice.
I would be very happy if you applied anything. It would mean that my efforts were not in vain.)
An excellent article, no doubt. We have to try and try and try, and eradicate laziness.
90% of all life's failures is the fear of change, the fear of starting to change anything in one's reality. I would put "rule 21" at the top of that list.
Some points I support completely. You should live positively, I've noticed that when you're in a bad mood, it's always hard to work. And you don't have to avoid change.
People avoid change because they are afraid of the unknown. They are afraid that it will be worse than it is now, and they hold on tightly to what they have without trying to multiply it.
Sometimes it is justified when there is enough money in general, but nothing is permanent, there is always a risk of change. So you should try not to be afraid of them.
It's very difficult, I catch myself every time that I'm worried about the change in the situation, but then I realize that there's no point in being afraid, it's a normal process. You have to accept and act.
Point 14 is a sore point. How do you explain to your superiors that the plethora of small jobs prevents you from performing important and promising tasks?
Oh. Alyona, I do not know even ... Here I am, unfortunately, profane, because in my case, the bosses are very loyal. As an option, make lists of promising and important with your projections for development and approach the boss with a proposal. But this is very individual, people are so different...
Rules number 12 and 16 are the most effective, a positive attitude and determination soon give results, and if not afraid to take reasonable risks, then success will not keep you waiting. Useful rules.
Money loves silence - don't share your successes!
Why? It's not a loss to me, and it's a benefit to someone else. I have the opposite rule: the more I give, the more I get. That goes for money as well as experience. So far it's worked 🙂
That's what millionaires advise! It's very lucrative, with envy.
I completely agree with Svetlana - I have already checked it for myself 100500 times! Here I work quietly and peacefully and all the work and projects go without a hitch, but just tell one person how I work and share my ideas - everything, immediately begins some problems, failures in the work, unforeseen expenses, etc. Now I don't tell anyone anything at all, I always answer all my questions with "Everything is normal".
Gentlemen, I am not urging you to boast about results or ideas, I am calling for financial discipline. You are confusing one with the other.
Yet all millionaires produce books with their secrets of wealth 🙂 The inconsistency.
And then, what is there to be jealous of? Working 14-hour days? Or the discipline of money?
Good rules of wealth, but only a few follow them.
And we don't have more rich people, just the same few. Strange coincidence)
It's not bad when you get paid for your work. But what do you do when you often get dishonest employers who try to do everything they can to not pay you?
The answer is obvious: search.
It's a really good article, but still, not everyone has the ability to save money.
And everyone has different opportunities. What advice would you give to people who don't have a start-up capital?
In fact, it is very difficult to answer this question unambiguously. A lot depends on the person, his employment, and his skills. I would advise to look for some additional income, which would be associated with an uncomplicated employment of free time. For girls: doing manicures or knitting mittens. For men it is more difficult... You can also raise the level of qualification, learn something.
What you are suggesting will never lead to wealth.
Of course. What I was suggesting was the answer to the question of where to get start-up capital, not how to get rich.
I believe one of the most important components of wealth is saving money. As Rockefeller said: "One dollar saved today will bring five dollars in a month. After all, there will always be an opportunity to invest the money saved in different areas.
If you follow these principles, it is quite possible to become rich. The main thing is to be self-confident and to pursue your goal.
On 100%, I agree with principle #14. If you're a great professional, you should do what you do best. Even if time and opportunity allows you to switch to something else. Something else should be done by specialists in "something else."