7 financial principles of the richest people

CHAPTER 2 “MONEY, OWN, DEPOSIT AND INVEST”

SUMMARY: Must know how to hold the financial reins.

Your money is your responsibility.

You cannot escape responsibility for tomorrow by avoid it today. – ABRAHAM LINCOLN

It’s your money.

Those are financial investment contracts of

And that is also your responsibility.

It’s very possible that this is the conclusion of this chapter.

However, I have a few thoughts on the subject.

I can’t count the number of times

I’ve seen investors

– in my industry as well as all other industries

– seem to think that “it’s only good

or better” to delegate full responsibility for the investment contract

to invest their finances in a “professional”

they know very little about.

This is a great power that cannot be surrendered to anyone.

In a later chapter,

we will think carefully about the appropriate use of professionals.

Please don’t think this is a contradiction.

The only way to make a relationship

with a professional work is for both parties to always remember

that your money and your future belong to you.

Previously, we discussed the “what”

and “when” of your investment plan.

Hopefully, you have started making a list of “whats,”

and have set a time frame for each item.

Now, we will focus on “why” you are saving and investing.

We all have dreams.

But to turn

Over the past 20 years,

I’ve asked thousands of investors why they invest.

The answers are always very interesting.

“To make more money.”

“To offset inflation.”

“To become rich.”

Believe it or not, these are pretty bad answers harmful.

However, when I gathered all the answers I heard waited all these years

and concluded it into something

I believe root concept,

I came to the following conclusion:

People save and

Invest to create financial freedom for themselves and their families.

Isn’t that a great term?

Financial freedom.

I can’t imagine anyone not wanting

to get away worries about money matters or not.

When someone

Having financial freedom means that person will have a “comfortable life.”
roof”.

What I mean is, that person can live a life

with very little concerns and pressures.

The question that needs to be asked then is,

what is financial freedom? No doubt

Unexpectedly, each person will give a different answer.

However, I found great similarities among the majority of people.

Let’s look at a few illustrative examples.

“I want to be sure that Gia

My family will have enough money to always take care of ourselves.”

Or, “I never want to be a financial burden to my children”

Or, “I want to make sure my children are taken care of

My husband and I can retire comfortably.”

My mother used to live in Hollywood Beach, Florida.

During class

When the weather is warm in this area,

it is not uncommon to see people walking on the streets bedraggled

with possessions filled

with large and small bags on shopping carts.

When my mother and I talked about financial freedom,

she always said,

“I don’t want to be a homeless woman.”

We all have dreams.

But to turn dreams into reality requires determination,

willingness to dedicate,

self-discipline and great effort. – JESSE OWENS

I am not trying to exaggerate

but trying to impress upon you the importance of your financial investment contracts.

It’s not something you can just arbitrarily put on someone else’s shoulders and say,

“I don’t understand much about investing,

so you can look after it for me.”

I will repeat,

and probably not for the last time:

It is your money,

your financial investment contract,

and also your responsibility.

*********************

YOUR LIFE, FINANCE FREEDOM AND A LESS STRESSFUL LIFE

Another aspect of financial freedom could be:

freedom from stress financially straightforward.

Unless you were born rich,

you probably were

Many times experience stress about money.

It’s not fun to have a creditor call your house during dinner,

to have a debt collection order sent to your house,

to have arguments between husband

and wife or between parents and children.

Financial stress leads to marital and family problems,

and will certainly affect your health.

Listen to King Solomon say:

“The plans of a wise man

Rolling will lead to profit,

and inevitably haste will lead to hunger poor” (Proverbs 21:05).

When Solomon wrote that aphorism,

he knew very well what he was talking about.

So, what is Solomon about?

To summarize:

“Diligence leads to gain profit.”

Do you find it true in other areas of your life?

If you desire to excel in sports,

You have to practice diligently and make efforts.

If you want to study well in

In college, you have to study harder

and understand the subjects well

Study more, and you’ll get better grades.

It’s the same in marriage.

It’s the same in relationships.

Want to excel at work also requires it.

This is not too lofty philosophy but reality economic life.

Are you willing to work hard

and be diligent to achieve financial freedom?

If so, you have a very good chance of success.

Here’s the good news:

You won’t have to go it alone.

We’ll discuss how to work with professionals later,

but for now,

I just want you to take responsibility for your financial future.

Psychology teaches us the principle:

“What you will achieve that you focus on.”

Others say it a little differently bit,

for example,

“What you have planned,

you will definitely achieve.”

These two statements have both been proven true over the decades past century.

When I watched the Winter Olympics,

I saw athletes sliding

Snow is waiting for his turn to rush down a long snow-covered slope and ice,

and then fly up into the air,

hoping to fly farther than their opponents mine.

When observing athletes,

I see that during the waiting time they often close their eyes

and wiggle their bodies a bit.

They are envisioning in their mind,

what they are about to do.

The more events like this I watch,

the more I see their competitors doing the same.

That’s especially apparent with snowmobile racers,

who always visualize while they wait,

before they start hurtling down the hill.

For them, visualization is like actually doing it.

Many athletes and coaches consider visualizing performance and desired goals

to be an important part of training.

Some trainers believe that this aspect of the process is

even more important than muscle training.

Writing down your financial goals,

putting the “what’s” on your list,

and setting a specific time frame for achieving those goals

– your own definition of financial freedom

– are two parts in the “visualization” process.

It will have an even greater impact on your imagination

if you create a picture book

to depict your life goals.

Let’s say one of your goals is a beach house beach,

where you hope to retire.

Look for an image ideal representation of this goal

and stick it in your picture book
Friend.

If your dream is to fund your children’s college education,

then choose a picture of a smiling bachelor and paste it in that book.

Don’t laugh too quickly,

this is effective.

Then, write a description on the back of each picture, or

On the opposite page,

in detail about the feelings

I achieved these goals.

These achievements will change your life

how are you?

Do these things give you a feeling?

Is it safe?

This is a very personal process;

Even so, if you are married

Then both husband and wife can and should do it together.

If both wives

Husbands who are both on the same path will create a willing partner responsibility,

a support person,

and your level of responsibility will decrease

Go.

A long time ago,

I created a picture book

like the one I described.

I’ve got a picture of a house

Built according to its own design,

with large and thick doors.

There is a photo

A very beautiful plane is sparkling in the sunlight.

One picture,

Another photo is of an expensive, fast, convertible sports car.

I look at this picture book over and over again every morning

before I leave work,

and every night before going to bed.

A few years later,

I was driving such a car on the way to the domestic airport,

which is near

Here I learned to fly a plane,

and then the house was built accordingly

My own design for dinner.

At that time I was young,

and my goal was of the nature of “taking care of myself.”

but this technique still is effective,

and it will definitely bring you a lot of joy.

Great success requires you to take responsibility…

After all,

qualities are all things

Successful people have…

the ability to take responsibility.- MICHAEL KORDA

As we get older, our goals change.

Now, my goal is to give away a lot of money.

This goal probably wasn’t in my first dream book.

It all speaks for itself that,

your goals will change.

You have to take into account the changes as you get older.

Just know that this process does happen.

As you might have guessed,

I’m trying to engage your senses in the process.

Writing down a goal is powerful for some people,

but seeing a picture may be more helpful for others.

It’s best to be specific in a way that best suits your personality.

“Have you seen a very skilled man at work?

That person will serve kings and not anonymous people.” (Proverbs 22:29).

Suppose you want to become very good at something.

What will you do?

Perhaps you will read books in this area.

You can watch instructional videos.

Surely you will use the Internet.

Many local colleges and universities offer classes

where you can get help learning the skills you need.

The more important a subject is to you,

the more effort you need to put into studying it.

What are we talking about?

It’s all about your financial future!

Is it worth learning some new skills?

Yes of course.

The more you realize the importance of the subject,

the more you want to master it.

The biggest challenge for you in learning about investing is choosing teacher.

Unfortunately, there are many scammers posing as teachers

to lure you into their investment program.

I will give it

Here’s a general rule:

Watch out for real teachers products for sale or invite students

to subscribe to the newsletter.

Warren Buffett is one of the two richest people in the world,

and one of the

The greatest investors of all time.

Buffett has nothing to offer sell to you.

He is a good example of a virtuous teacher.

There is no single source of quality investment information.

You can learn from all sources of information,

as long as you always remember their motivations.

For example, the television channel CNBC provides some good knowledge

and information about the investment markets.

as well as private companies.

But also remember that CNBC channel has a lot of advertising time.

Also remember, any television channel

or newspaper must sell advertising to survive.

So even CNBC has that same incentive to give you news and commentary.

Again, this doesn’t mean you can’t learn from it,

as long as you keep reminding yourself that

there is no “Holy Grail” of investment advice.

I know there are many people who watch financial news channels all day long.

This is absurd in many aspects,

including: in life, aren’t there more things to watch than watching a business TV channel?

*****************

WHAT DO YOU THINK ABOUT MONEY?

This leads me to another point in this chapter,

which I will present here so I don’t forget it.

Taking responsibility and learning more about financial matters is good;

But letting money and investment plans bury your entire life is foolish.

Solomon wrote, “Whoever loves money too much will never have enough of it;

Whoever loves wealth too much is never satisfied with his income” (Ecclesiastes 5:10).

Solomon teaches us to set life goals,

take care of our family and future,

and not allow money to bribe us.

In other words, money is not the source of all evil,

but love for money can cause serious problems.

Comedian Robin Williams said that

a boy asked his father where he kept $250,000.

Startled, the father asked again,

“What the hell are you talking about?”

The boy replied that,

as his teacher taught in class,

If you make money your lord,

it will work for you infected with the plague,

like being haunted. – HENRY FIELDIN

If a person saves $2,000 per year (or $167 per month) in a retirement account earning 8% interest,

he or she will accumulate more than $250,000 within 30 years.

So this boy understood how easy it was to save money,

so he wanted to know where his father kept the money.

The moral of the story is:

(1) Savings and compounding work;

(2) Math is easy to learn,

and (3) The principle of saving is the difficult part.

Must have discipline.

Isn’t that the difficult thing?

Anything in life worth achieving seems to require discipline.

The first thing I often tell clients is,

“I can help you invest well,

but I can’t help you save.

Saving is your job.”

If discipline is the vehicle used to get you to a financial goal,

then a clear vision

– including well-defined goals and objectives

– is the fuel that runs the vehicle.

The principle of saving is a form of postponing happiness.

Again, the question that needs to be asked is:

Is it worth doing?

I suggest you try to think about your parents.

Do they work hard all their lives,

raise their children, meet their family’s needs,

do their other jobs?

For many people I spoke with,

the answer to that question was clear:

Yes. When I followed up with a question related to their parents’ retirement experiences,

many people told me that their parents deserved better.

For many people,

looking at their parents is like looking into their own future.

If your parents are comfortably retired,

have the financial security to enjoy life, family,

travel or whatever they like, then

You must accept personal responsibility.

You cannot change circumstances,

change the seasons,

or change the wind,

but you can change yourself.

Responsibility is something you have been entrusted with. – JIM ROHN

Let’s find out what they did to get such results.

The opposite of this scenario is a lesson and motivation for us.

If your parents were or are not enjoying the quality retirement life you feel they deserve,

learn from their mistakes.

When I look across this country,

I see so many examples of elderly people who have worked hard all their lives,

raised their children to be good citizens,

and I have met people who are patriotic

and considerate to care about others,

know how to share…

But they don’t know how to save,

so they have to live a less comfortable life than the life

they deserve.

Some of the most optimistic people are like that,

they often tell themselves:

“I will start saving when I earn more money,

I will earn it soon.”

However, time passes, those good intentions last for years,

and then,

before they come to their senses,

decades have passed,

and it may be too late for them to start.

The “whats” and “whens” we talked about in Chapter 1,

along with the “whys” we mentioned in this section,

create a great foundation for our thinking.

Use the list of goals and objectives you created

– call them “dreams” if you like

– with the time frames you defined for each as a starting point.

Now, create a dream book with pasted images.

Use images that evoke emotion

and share it with someone

who will share your excitement

and can help you fulfill your responsibilities.

Let’s continue to explore the question of why you are investing.

Remind yourself regularly of the benefits

you will receive from applying principles

and putting aside personal gratification.

Regularly evaluate your progress,

but don’t must do every day.

Get your values and outlook in order

and focus on your investment decisions

One day I want to become rich.

Some people are so rich that they don’t respect humanity anymore.

That’s also how I want to become rich. – RITA RUDNER

Ask yourself

1. Am I responsible for my financial matters?

2. When I think about financial freedom for myself and my family,

what do I see? What does your financial freedom look like

3. I will achieve what I focus on.

What am I paying attention to?

Is it time to change your focuses?

4. Am I knowledgeable about financial issues?

If I lack skills,

am I committed to learning the necessary skills?

5. Discipline is an essential attribute for a financially successful life.

Am I willing to commit to a disciplined financial plan?

Things to do wisely

1. Write yourself a piece of paper:

“I am responsible for my life and my financial status.”

Keep it in your wallet or handbag

Read it many times until this thought comes naturally to you.

2. For many people,

money and finances take a back seat other areas of life.

Financial success is required attention.

Be determined to have determination regarding money matters.

3. Commit to a self-training program.

This book is a good start,

but don’t stop here. Let’s

Explore more through a consistent learning program.

ADVICE OF THE ANCIENT PEOPLE

Ecclesiastes 5:10 – A person who loves money too much will never have enough;

People who love wealth too much will never be satisfied with their income.

PROverbs 22:29 – Have you seen a very skilled person at work?

He will serve kings; Not serving anonymous people.

PROVERBS 21:5 – The plans of a diligent man lead to profit,

and haste inevitably leads to poverty