7 financial principles of the richest people

I. KEY WORDS: “THINK FIRST”

SUMMARY: The first step to success begins with saying  “I have a plan.”

In a place without vision,

people will not know how to control themselves. – KING SOLOMON

If you’re planning to build a house,

you probably won’t start by buying building materials

before drawing up plans.

Likewise, if you’re driving from New York to Denver,

you’ll probably find a map helpful.

Then, why are there so many investors exploiting the programs?

Investments that seem so nice before they have a detailed plan?

As a professional investment advisor,

I have seen a lot

It makes no sense for investors to participate in investment programs

for their investment portfolio.

I will give an example: an investor

Retired investors need investment programs

that produce income to supplement your social security or pension income.

Have

A friend told her about a level investment program

Double-digit growth over the past 10 years,

but unable to generate revenue import;

However, the future of this company is very bright.

Without needing to know anything more about that woman,

you understand that this investment may be good for someone else

but does not suit her needs.

Why so? Because, clearly, this investor needs immediate income

to supplement the income she is receiving from other sources.

Planning is about bringing the future closer to the present,

so you can do something now. – ALAN LAKEIN

There are many dangers inherent in one’s investments is looking for investment programs

when he or she doesn’t have one yet

A clear and precise investment plan.

I assure you that information sources you can access,

for example magazines

Money, CNBC TV channel, friends, colleagues, the above ads

Television and newspapers always present all kinds of investment possibilities.

They all sound great,

but are they right for you?

Does it fit your plan?

Does it meet your needs?

you or not?

The first lesson of wisdom is learned from King Solomon consistent

with what I have witnessed throughout my professional life

My investment:

You must – I want to emphasize absolutely must – have a plan before taking action.

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PLAN TO PLAN

Most investors have many goals,

because they need to plan for certain periods

and certain events in their lives.

Maybe you’re preparing for your child’s college education,

at the same time are also planning for your own retirement.

Person

Another may be saving money to buy a dream home,

in while also investing to accumulate money

to establish a business new career,

or write a book.

(Like I’m doing work write a book.)

Understanding the “what” of our plan is the first step very important.

What do you invest for?

You are trying to finish what?

What goal do you have in mind?

But “what” only is just the beginning.

Suppose, you are already aware that

there are different “what” is in your life.

But what should be the priority?

Not single

Simply put,

your child’s college education always happens

before yours retirement so you can start from there.

It’s not that easy.

You can start saving money and investing

for both purposes at the same time

But, for most of us,

there is always a limit to the amount of money we can save.

That means,

something needs to be a priority.

This is an opinion

My personal statement:

I am someone who would love to have a debt-free life debt.

Common knowledge tells us that there are three main types of pressure

In life, there are financial pressures,

marital pressures,

and physical pressures health pressure.

Financial pressure often leads to pressure to marry cause

and can cause health problems.

So, if you need to set priorities,

would recommend it as follows,

as a general principle.

Pay off all the bills

Unsecured debt, including credit cards, etc.

Most of these types of credits charge VERY HIGH interest rates,

usually to 25% (I have seen some cases even higher).

Pay it off those accounts,

and most importantly, don’t use them again.

Let’s repay debt on time.

By doing so,

you will have a guaranteed “yield”.

Guaranteed equivalent to the amount of interest you are paying.

Almost like you will never find a quality investment program scrumptious

and yield such good yields.

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

THE BEST WAY IS TO PAY STEP TO STEP

Next, pay off, or pay off,

your mortgage.

There is no feeling quite like the feeling of living in a house had to mortgage.

I still remember the feeling the first time

I stepped foot into your home after writing a check

to pay off the final mortgage payment together.

Oh! It’s like entering a new house for the first time.

I sit in the reading chair

(of course this chair is not for you to anyone in the house,

except me and my cat,

although several dog breaks the rules when I’m away)

and rejoices at the thought of taking the throne

This house is truly my home.

No one can take it away from me.

A feeling

The feeling is wonderful.

I know this feeling might not be that terrible,

but

I cannot stress how important and liberating it is how.

Some other financial advisors often advise against it pay off the mortgage.

After all, it’s your mortgage and you’re using your money others.

But there are more important things than that.

With paying

When your mortgage is gone,

you will not only find yourself financially free

but also the satisfaction of knowing that it is you,

not the bank goods,

owning your home.

I understand the logic of that handicap,

but I can’t tell you how many times,

Let’s turn our forethought into forethought and planning. – WINSTON CHURCHILL

As an investment advisor,

I helped a couple pay off their mortgages their mortgage.

And later, I received a letter or a phone call there,

from the wife thanking me for encouraging them to do so.

Speak

In general,

women are more concerned about financial security expansion of an investment portfolio.

I know that’s generalizing,

but personal experience shows that to be true.

Please believe me,

Living debt-free will free your mind and soul.

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LET’S SAVE

Finally, save as much as possible to prepare for retirement.

Maximize your company-sponsored retirement plan.

If your company invests money in the plan,

consider it a gift

– not a substitute for your personal contribution.

I’ll say it again because it’s so important:

Maximize your retirement plan.

Participating in pre-tax retirement savings is one of the most effective ways

to save and invest.

I must stress this to tell you

that it is unwise to start an additional investment program

until you have reached the maximum amount of retirement savings allowed by law.

Saving on a pre-tax basis

(money deducted from your pre-tax payments)

and allowing your savings to grow on a tax-deferred basis is very effective.

You may have noticed

that I haven’t mentioned saving for your child’s college education.

I know how to help Judy and Johnny finish school

College is an important part of your overall life strategy,

but I want you to consider the following two points.

Rank

Best of all, if you focus your savings

and investing efforts on your child’s college education

and not on retirement savings,

then, at some point,

Judy and Johnny will likely have to help out.

Friend.

That wouldn’t be good.

Second, and more practically,

both state and federal governments help your child access grants, scholarships,

and low-interest loans so they can finish college.

I just want to say,

there is no excuse for an American not being able to go to college.

If you are taking care of your other financial needs responsibly,

and have disposable (after-tax) income,

then of course you have savings for your child’s college education.

As St. Paul said,

“If anyone does not provide for his relatives,

and especially for his immediate family,

he has denied the faith,

and is worse than an unbeliever. ”

These words may seem a bit harsh.

You can also assume that

My thoughts on saving for college didn’t add up with the Bible.

I would disagree and add that,

sometimes it works

Placing financial responsibility on an adult child is also rude provided to family.

I really love the people who support my studies their children’s college,

but I also know that not everyone can do that.

Let’s move on to another topic…

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FINANCIAL TERM

After creating a solid and realistic list of things

that you are saving and investing for,

you should set one up

Time frame for each goal.

For example,

if you are currently 35 years old and

If you want to retire at 60,

your time frame will be 25 years.

Twenty-five years is a long time.

After all,

it’s equal to a quarter of a century, right?

Don’t be fooled.

It seems like you have plenty of time

and you can procrastinate a bit.

The problem to consider is

that it is necessary to accumulate a very large amount of money

to complete a task.

Let’s say you need $65,000 per year from your retirement savings

to replace your current income.

Let’s also assume that your current income is $80,000 a year

and you expect to receive $15,000 from Social Security

or another retirement program.

You will need to accumulate $928,571 in principal

and need to generate a 7% rate of return

to get the $65,000 you need.

So, if you think about it this way,

25 years is not a long time.

Create a problem like this for each of your goals.

Make sure each goal is realistic and achievable.

If you find a goal completely unrealistic,

rethink your strategy.

The point here is to have a vision.

Create a financial roadmap if you can.

Must be very specific.

We have talked about this issue quite a bit,

while not talking about the characteristics of investing.

We will talk about this issue later.

I want you to realize how powerful Solomon’s teachings are,

and how clearly they relate to today.

As an expert in this field,

and having witnessed both the success

and failure of many investors,

I can assure you that without a clear and concise plan,

you will fail.

But with a good plan,

you will success.

Your investment plan is so important that

I intentionally put it first in this book.

I think King Solomon would probably agree with me.

Come up with big plans and noble goals,

one hopes and works,

and remembers that a noble

and sensible plan once written down will never die. -DANIEL H. BURNHAM

Young readers may think,

“I’m just making ends meet,

so I can’t save now,

but I’ll save when making more money.”

Believe me, I’ve been present in every part of the payroll.

The time to start saving is now… or sooner.

When I first started working,

I had just gotten married and had just enough income to get by.

One day, my lovely wife said she needed money to go

to the grocery store to buy essentials like milk, eggs, etc.

I told her I wouldn’t get paid until Friday.

But no way.

She said to me,

her voice firm,

“Why did you deposit so much retirement savings so early

when we so needed the money?”

It’s very easy,

if we give up on my savings plan we will have more money to take home.

But we survived that time.

I can assure you that many years later,

my wife is very

Glad to see

I was enthusiastic about saving so early.

Come these during difficult times afterward

(when I decided to choose a career in writing books),

we had a lot of savings to overcome the difficulties.

In short, save money now,

even if it’s just a little.

The advantage is that you still have time,

so take advantage of that.

Albert Einstein once said that compound interest is “the eighth wonder of the world.”

Older readers may feel discouraged because so much time has passed

and they are “at a disadvantage.”

Yes, that’s partly true;

However, there is still no reason not to start.

There are federal retirement savings regulations

that allow you to save more.

They are considered “offset” provisions.

Getting rich is a coin with two sides:

Saving and investing.

At first, we talk about saving

because it is the more important aspect.

Think of it this way:

If you don’t save, you won’t have anything to invest.

Saving and planning will help you get ahead

and give you better chances of success.

We’ve heard of people who have stayed in the same job for over 30 years

– they never earned a high salary

– only to find they have tens of millions in savings when they retire dollars.

They are good and reliable savers.

Savings is somewhat like dieting.

Let’s talk about this together.

No one likes to diet.

Some people,

like me,

always have to diet just to maintain a stable weight.

In my genetic code,

I have what dieters like to call the “fat gene.”

(If we were in church,

I would definitely have to repent about this.)

Just think about it.

You have to give up things that you really like.

Sometimes, at night for example,

it’s really annoying.

We have traded immediate satisfaction for a future goal.

However, if we tell the truth and stop whining about it,

taking control will help us feel more confident.

When we see the weight loss,

we celebrate our victory.

And when we reach our goal weight

and catch a glimpse of our body in the mirror,

we say, “Diet was worth it!”

Isn’t dieting just like saving?

I want you to start thinking about it that way.

Be confident,

take control,

celebrate small successes,

and work toward a goal.

I can assure you,

you will eventually would say,

“Savings is worth it.

Money frees you from things you don’t like.

Because I don’t like- doing almost anything,

money is very helpful. – GROUCHO MARX

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ASK YOURSELF

1. In life, what do I really want? Take time to think seriously about this question.

2. What are my priorities in life? Which priority is most important to me?

3. Is my current financial situation consistent with these priorities, and to what extent?

Be honest with yourself, even when the truth hurts.

4. What needs to change? Let’s talk specifically about them.

5. What are the first steps I need to take on this new journey?

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THINGS TO DO WISELY

1. List out specific goals (the “what’s”).

Take the time to write them down, so you can review them often.

2. Visualize your life as if those goals have been accomplished.

3. Once you feel comfortable with those goals,

create a schedule for each goal.

Adjust this schedule as necessary.

Remember, life is always changing.

4. Choose one debt to pay off.

Once you have paid off this debt,

take the amount equal to the amount you paid

and add it to pay another debt.

Once you’ve paid this off,

make the combined payments

and add it to pay off another debt you’re paying.

5. Find ways to save.

Small amounts of money add up quickly.

6. Review your goals, at least once a week.

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ADVICE OF THE ANCIENT PEOPLE

TIMOTHY 05:08 – If anyone does not provide for his loved ones,

especially his immediate family,

he has denied the faith and is worse than an unbeliever.

PROverbs 29:18 – Where God is not watching,

people will not know how to control themselves;

But lucky people are those who obey the law.

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II. WALL

When Abidan arrived at the palace,

the same mandarin from the previous day came to welcome him.

He was led through large,

paneled rooms again.

With each step,

his heart beat a little faster.

During their previous meeting,

the king had been very kind to him,

so he felt less afraid,

but still not more confident.

When they arrived at the Palace of Adoration,

the attendant stopped.

Abidan also followed suit.

The day before, the room was empty,

but now,

the king was sitting on his throne and stroking his beard.

A moment later, the king spoke,

but spoke so softly that Abidan could not hear anything.

There were two men standing bowing before the king.

“What is going on here?” Abidan asked.

“The king often holds court here.

These people are in dispute.

The king will make the final judgment.

The wisdom of famous people everywhere.”

“So do you share that wisdom with others? huh?”

“Otherwise, it wouldn’t be considered wise.

He will share wisdom with you.

He shares wisdom where it needs to be shared.”

“They are working, Your Majesty.”

Solomon sighed. “Let’s take a closer look.”

Abidan looked closely at the men for a moment.

“They are removing stones from the wall.”

“Correct.”

“I don’t understand,

Your Majesty.

The wall looks new and in good shape.”

“It’s true it’s new,” Solomon said.

“Just built ten days ago.”

“So why destroy it?”

“It was well built and sturdy,

but not according to plan.

The master craftsman whom I hired to do this work had to go to Galilee,

and his workmen continued to build this wall.

He left specific instructions on how to do it and where the curve should be.

When he returned from the North,

the wall was there completed

but did not meet the specifications he proposed.”

“So He made him do it again.”

“Are not. I did not give such an order.”

Abidan looked at Solomon.

“But Your Majesty,

he has come here and is doing it with his workmen.”

“He came to me the day he returned,

apologized to me,

and asked me to allow him to remove the wrong parts of the wall

and rebuild it as designed.

Of course I agree.”

“He offered to correct his mistake?”

“He takes responsibility for his work. He proposed

Please do it right.”

“Does he blame his workers?”

Solomon shook his head.

“No, Abidan, he did not blame.

He said it was his own fault.”

“But Your Majesty, he is away.”

“Exactly. What does this teach you?”

“Hire wisely.” Solomon laughed.

“Yes, that is wise,

but it is not your lesson today.

Let’s think again.”

“This man trusted his workmen to do the job right,

but they didn’t do it right…”

Abidan thought blankly.

“He didn’t blame the workers blame yourself.”

“Good. Go on.”

“I don’t know.”

“I believe you know.

Now, he and his workers

What am I doing?

“Tearing down and rebuilding the wall.”

“Why so?”

“Because it wasn’t built right…

and that master worker believed it

that it is his responsibility to do what he promises.”

“Very good, Abidan.

The word ‘responsibility’ is the key point.

This master is one of the people I love.

He did something rare,

not because I asked,

but because of him

Take responsibility for your work.”

“Therefore, if you are wise,

you will not deny it

Is it your responsibility for… my work?”

“And about decisions,

about finances,

about family, and all everything.”

“I know.”

Solomon closed his eyes and read,

“The plans of a diligent man bring profit,

and haste inevitably leads to poverty.”

“An aphorism.”

“Correct. What does it mean?”

“Hard work leads to wealth.”

“No, that’s also correct.

But I’m not talking about working hard.”

Solomon recited the aphorism.

“The King said ‘hard work.’”

“A wise person is a hard-working person.

He not only works diligently,

but he works properly,

he works with a plan,

he knows what the end result will be.

Our master knows what the wall needs to be like.

That was his goal,

but the workers he assigned failed to realize his goal,

so he was reconsidering it himself.

What is the lesson here?

“Don’t trust others too much…”

Abidan saw a frown forming on the king’s mouth.

“Set a goal and work toward it.”

“Correct. So who will be responsible for that goal?”

“Foreman.”

“What about in your life?”

The meaning suddenly became clear.

“You will be responsible.

To become wise and rich,

you must be diligent

– work hard,

but with a clear purpose.

You are responsible for what you dream,

for what you do.”

“You have grown wiser,

Abidan, but be careful.

You must look beyond money.

Anyone who loves money too much will never have enough money;

If you love wealth too much,

you will never feel satisfied with your income.”

“I think I understand now.

The mason did this addition not for money,

but because he was responsible for how the wall looked and where it was built.”

“The foreman believes he is losing money,

which he is.

I will reward his diligence.

Now, Abidan, tell me,

in just one sentence,

what have you learned?”

“You are responsible for your dreams,

your money, and your work.

To become wise,

you must be diligent in everything you do.”

“Two sentences are lost, Abidan.

But it’s acceptable.”

Solomon turned and started walking back to the palace.

“I have to return to judge a dispute between two women.”