Let’s begin, now shall we? Philosopher and Irish statesman Edmund Burke once said, “If we command our wealth, we shall be rich and free. For whatever our goals and reasons may be,we often find ourselves stuck in a maze of earning and spending, wants, and needs. So, as we are stuck chasing riches, we would wonder, what are the hidden secrets of money? How do you get rich? Well in today's episode we will answer just that in what we've prepared as fourteen rules that money abides by.
1) Money is Earned Through Crisis Wall Street legend and Forbes top billionaire,
Warren Buffet once said that the secret to getting rich on wall street is to try to be greedy when others are fearful, and to try being fearful when others are greedy. This advice not just applies to invest because it is during crises that keen people spot opportunities and earn big. Why? Because some needs become magnified creating demand while things become cheaper then. When everything has shut down, real estate is performing it's poorest and the stocks have tanked, how exactly do people make money?\
It is during this time when the wealthy buy assets, restructure loans and build liquidity. If for example, someone bargains to buy a property valued at a million dollars during a normal economic situation for seven hundred and fifty thousand dollars, the seller might just agree. Why? Because no one is willing to buy the property during crises. The demand is low therefore the buyer has more bargaining power. If the same buyer holds the property for about two years, he is sure to make profits from capital gains once the economy resumes to normalcy. The same applies to the stock markets, during crises, stock prices stumble, but this won’t last forever. Most people panic and start selling as the prices go down, to avoid losing anything, but the wealthy who understand the rules of money will be busy buying. Economic strife doesn't last forever, and they happen to create the best opportunities to increase your net worth. So save up some money and invest wisely when the next one hits!
02) Money is a Game of ExchangeMoney is made through an exchange.
Some people earn money while others make money. Doesn't sound like there's much of a difference but there is! You earn money when you trade your time and energy for money. In other words, you work for an hour, you get paid for an hour. Making money is when you use your own time and energy and a bit of creativity once and get paid over and over and over again. For example when you make a new product and get paid every time it sells. Nonetheless, For you to earn some income it has to come from one source into yours. For a business to make sales, the money has to come from the buyer’s pocket and into the business’s account. So in short, there has to be some form of benefit that will bring about the exchange. So, for you to attract money into your account, you have no choice but to create some form of value for the exchange to happen.
03) Money Attracts MoneyThis could be one of the greatest rules of money in this century.
Ever wondered why the rich only have rich friends? It’s not because they don’t want to hang out with poor people, but because their financial status only attracts those within the same bracket. Most people often say the rich are proud and disassociate with the poor, but in the real sense, the two categories have very little in common. With that in mind, if you want to be wealthy, you have to befriend the wealthy. By having wealthy friends, you will slowly learn their ways, adopt their habits, and become one of them. These people know how to make money, have lifestyles that increase their finances, and are always surrounded by opportunities.
04) Money is Easy to Get and Harder to MaintainMany people make money easily but are not able to maintain it.
To put this clearly let me explain the big cheque syndrome. Say a real estate agent sells a six million dollar home and earns two hundred thousand dollars in a month. For the next few months, he starts living as though he earns that much every month but in reality, he only makes about seventeen thousand monthly. This money obtained upfront deludes the agent into focusing on the whole amount hence splurging it. Most people get over-excited when suddenly a few zeros appear in their bank account. Instead of investing the amount wisely to double it, they spend it, changing their lifestyle, not realizing the increment is temporary. Money stays where it is nurtured and taken care of; making it easier to earn but harder to maintain. According to the Forbes list every year 80%of new millionaires lose their status. Now, isn't that some food for thought!
05) Money Loves SecrecyMoney works best when secrecy is involved.
Make sure you always have a secret account. The rule is to always have a secret account that nobody knows about except yourself. Never disclose everything about your finances, always leave some amount of secrecy. Why is this so important? When people are aware of their financial status, they often take advantage, that is just human nature. I’m not saying you shouldn’t help when your close relatives or friends are in need but they will always ask for money from you. And, when you refuse to help and they know you have it, this may cause some strife within your relationships. But when you keep a secret account it can be your lifesaver in case of emergencies, anything could happen at any time and you may need some cash. At one time your business may run the risk of bankruptcy and you may still have to pay employees or there might be a crisis that may demand to spend of unanticipated funds.
06) Money Hates StagnationI know it sounds hilarious but it's actually true. Let me explain what we mean by this.
Money loves being moved around from one place to another. Just like human beings when money is bored becomes unproductive and may even leave leading to losses. But let's delve deeper into this for a moment. For example, if money is pumped into the same business without returning profits, it eventually becomes bored and at the end of the day, all you're doing is earning losses. The same applies to the diversification of income. Money loves being invested in different places. At the end of the day, all you have to do is sit and watch it flock you from different directions. Money stored in an account is also as good as wasted. Note that I do not mean the secret account mentioned before, that's for emergencies. You have to make sure your money is moving around, working for you to earn you more.
07) Money loves risk-takers truth is the older you get the lesser risks you are likely to take.
For example, a twenty-three-year-old can affordto invest in more risky investment options than a seventy-year-old. When you are at that age your risk tolerances definitely lower than when you're younger. Money loves risk takers and if you plan on playing safe all your life, you might not quite make it big. Great opportunities always come with a directly proportionate risk. So, while you are still young, make sure you invest wisely and take calculated risks in everything you do.
08) Money hates spendthrifts you take out sugar from a jar and don’t replace it,
what happens? The jar will run empty. The same for money, it will never grow where its always being spent. For every penny spent there has to be a counteraction taken to replace if not double it. For most wealthy people who live lavish lives and are able to sustain it, they have set the needed measures in place to replenish the amounts they use up. In order to be rich, you can’t fly first class, drive the most expensive cars or own the best mansions, unless you have a solid channel of bringing back the money spent. Here's my favorite quote about saving by Thornton. Unique and creative ideas will never lack the market. Believe it or not, it sells and there is a serious lack of originality in business and companies are defaulting to what they sell, instead of what they stand for. To be an entrepreneur,
it often means bucking the status quo and taking an idea you believe in and tirelessly proving its worth to the world. While you should pick up bits of tips from successful people and try to learn from them don’t try to copy their whole life. In short, be authentic, curate your own financial journey because no two people have the same circumstances. Start with what you have, gather up tips from others, and write your own plan.
10) Money Loves to Be ControlledIf we are,
to be honest, money loves to be kept on a leash. Never let your finances run wild or else you will be in trouble. Have an account of the number of money you have in every bank account and know how much is spent on expenses regularly. If you don’t control your money it will control you. If you don’t determine how much you can spend monthly, your money will dictate for you what you can and can’t buy. Control your money or else it will control you and when this happens you could end up in debt. And wouldn't that be bad news?
11) Money can Never Be The Problem and TheSolution If money is the problem then it definitely isn't the solution.
Here’s where people go wrong. They think because they are short of some money, borrowing more money will solve their issues. So what happens? They end up in a spiral of borrowing more and more debt that they really can’t afford. Instead of borrowing more money to solve your current money issues, why don’t you look for additional sources of income? That is the only way to solve a money problem. You can get a side hustle, get an extra job, or even start a business.
12) Money Doesn’t Change PeopleI know most of you will probably argue with this fact but it’s the truth.
Money and success won’t change you, it will only magnify what is already there. Someone who becomes proud and arrogant all of a sudden after getting rich has always been proud and arrogant money only let them be their true selves
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