Why do the rich hide the manifestations of their wealth? 10 golden rules for wealthy people
Learn the most important golden rules that should be followed on the way to getting rich.
In this report , published by the American website "MSN", writer Stacey Johnson presented a list of the most important golden rules that should be followed on the road to wealth.
1. Never spend more than you earn
When I was ten years old, I started working as lawn mowers to earn money to supplement my expenses, and when I received my first wages, my mother took me to the bank to open my first savings account. Less than I earn."
2. Avoid debt
Most people treat debt as if it were a normal part of their lives, dividing it into "good" and "bad" debts, and discussing it as if it were a mysterious mathematical equation.
Although debt is not complicated, paying money to temporarily use other people's money makes you poorer, while collecting money to allow others to use it temporarily makes you richer.
Warren Buffett: “Be afraid when others are greedy, and be greedy when others are afraid.”
3. Buy in times of crisis, sell when everyone thinks they can't lose
The writer reported that the wealthy benefit from the good times, but they did not build their wealth in this way, in fact, you can get richer by investing when others cannot, that is, when unemployment rates are high and the market is in turmoil and everyone is in a state of panic and there is no looming Nothing but fear and misery.
The economy periodically goes through hard times, with most people powerless to act, but you have to take advantage of recessions to invest your savings. In the words of billionaire investor Warren Buffett, “Be afraid when others are greedy, be greedy when others are afraid.”
You can get richer by investing when others can't
4. You can look rich or be rich
The writer mentioned that she worked as an investment advisor on Wall Street, and quickly learned that people with big money often don't show it, spending your money on cars, clothes, vacations and homes that you can't afford will make you look rich, but it will prevent you from achieving real wealth later .
5. Live like you're going to die tomorrow, and invest like you're going to live forever
Take advantage of every moment that passes in your life and take advantage of every day, you don't know that you may die tomorrow, but make sure to save some money to enjoy life for as long as possible.
6. There are only 6 ways to get rich
The only ways to get rich are:
1. Marry a rich person.
2. I inherited money.
3. Exploiting unique talents.
4. To be extremely lucky.
5. Own or lead a successful business.
6. Spend less than you earn, and invest your savings wisely over long periods of time.
Even if you aim to follow one of the first five methods, be sure to apply the last of them because it will guarantee you wealth in the end.
7. The most dangerous thing you can do is not take any risks
If you want to get profits, you have to take risks, whether it is money, love or life in general.
For money, risk means investing in assets that could go down in value, including stocks, real estate, or your own business.
The writer emphasized that more risky investments usually provide an opportunity to achieve higher returns, and this additional return would make a big difference in the amount of money you have, for example, if you invested $ 200 per month over 30 years with a return of 12% annually, you will reap in the end End up hundreds of thousands of dollars in retirement savings.
However, you should reduce the risk by knowing as much information as possible before investing, not risking everything you own, and learning from your mistakes and the mistakes of others.
8. Don't make your well-being someone else's responsibility
When it comes to your money don't delegate managing it entirely to an advisor, it's a good idea to look for a professional for advice and guidance, but no matter who this advisor is or how smart he is, your money is more important to you than it is to him.
In theory, almost anyone can learn how to manage their finances, and if you can't afford to manage your own money simply put it in a bank account.
9. Sometimes, the less information the better
The writer said that about 15 years ago, she invested about two thousand dollars in Apple shares, sold half of them years ago, and sold a few of them a few years ago, and her remaining share is currently equal to hundreds of thousands of dollars, even if she watches the financial news every day and interacts With her, she would have sold all her stocks long ago and regretted that day.
If you want to get rich, buy high-quality shares and keep them for long periods of time, but if you want to regret later, sell them without thinking based on a report you read or information you heard from someone.
10. Time is not money, money is time
Time is the only non-renewable resource, and once your time is up it's all over. The trick is to spend as much of your limited time as possible doing the things you love rather than working for other people and doing things you should, and money is the only resource that lets you do that.
Going to the mall and spending $200 on clothes means you lose money that you could have invested. per month in retirement, means that giving up spending $200 today allows you to be able to retire two months early in the future.
Of course, you need to buy clothes, but not for $200 but for less, and you have the choice, either to spend money today or make time tomorrow.
