5 principles everyone should know to increase their wealth
|5 principles everyone|
Did you know that there are only 5 principles to know to boost your wealth? Few people know this and especially apply them. Yet it is THE sure way to become rich. Not by having a few eye-catching things that lose their value after you've gone into debt to buy them, but by building up your wealth in such a way that you're sure you'll never run out of money.
Here are these 5 principles, to be applied today without moderation:
1. Increase to the maximum and multiply all your sources of income
Manage your career as your most precious asset, to maximize your pleasure at work and your salary. Multiply your sources of income, so that you don't depend only on your salary: take a second job, earn money with your favorite hobby, rent out a room in your house, invest the money you earn so that it brings in much more, etc.
2. Minimize your expenses.
Live on less than you earn. This is the least followed principle, yet the one you have the most control over and will have the most impact on your finances.
3. Avoid debt
Taking out a loan means paying more for something than it's worth, and therefore getting poorer. It also means losing your freedom: you will work to give money to your banker. Pay off your current debts as soon as possible and limit the use of credit. Use it only for worthwhile things: buying your home or if the money you have at your disposal is worth more than the cost of the credit.
4. Invest in things that appreciate
Spend your money in assets that appreciate: your home, a small business that you create, or that of others, via the stock market or funds on a PEA or life insurance, a home that you rent, paintings, ... and diversify these investments, to limit your risks. Avoid assets that lose value: a new car, nice clothes, a too nice renovation of your home, ...
5. Protect the value of your assets
Properly insure all your assets so that they retain their value no matter what happens: your income (death insurance, disability insurance, health insurance), your home, your car. Don't forget your will to settle the details of the transmission of your assets. So that what you have created is never lost.
Becoming rich is like winning at soccer, you must have a good offense, that is to say, generate a maximum of money, by all legal means available to you, and a good defense, that is to say, spend a minimum and ensure the value of what you have acquired. By reading the articles already present on this blog, and the following ones, maybe you will become a world champion?
What is the fifth principle of money?
What is the fifth principle of money? Money has no life or power of its own. Having a good mental attitude towards money means: you even face difficult situations with a positive attitude.
What are the financial principles?
The principles serve as a guideline for the investment and financing decision. CFOs make operating, investment, and financing decisions. Some of them were for the short term and some for the long term.
What are the five foundations?
15. The Five Foundations: The Five Steps to Financial Success: (1) A $ 500 emergency fund; (2) Get out of debt; (3) Pay cash for a car; (4) Pay cash for college; (5) Create wealth and give. 16. Sinking Fund: Save money over time for a large purchase.
What does the Bible say about wealth and prosperity?
Work hard and be successful in life, but don't think of yourself as better than others because of your material wealth. In Deuteronomy 8:18, Moses reminds us, “But remember the Lord your God, for it is he who gives you the capacity to produce wealth. Don't put your hope in your wealth.
Why should you build wealth and give?
Work hard and be successful in life, but don't think of yourself as better than others because of your material wealth. In Deuteronomy 8:18, Moses reminds us: “But remember the Lord your God, for it is he who gives you the capacity to produce wealth. Don't put your hope in your wealth .