100 unchanging rules for business success
Part 5. THE LAW OF MONEY
Everyone desires to have a financially independent
and comfortable life.
This is one of the important goals
that everyone is always aiming for.
In today’s economy and society,
the opportunity for you
to achieve this goal is not as difficult
as it used to be.
Your task is to choose the most suitable opportunity
and commit to it.
The secret is not in the mechanics of money,
but in the way of thinking that makes money.
Once you know how to think,
you will have endless possibilities for making money. ― Steve Siebold
Similar to other fields,
if you want to be successful in the financial field,
you have to follow certain rules.
Besides, attitudes and views about money
as well as beliefs about
a prosperous financial future will contribute
to determining the amount of money you accumulate
during your working life.
In addition,
personal happiness
and financial independence are closely related.
You will not be able to find true happiness
if you always have to live in a state of anxiety
and stress about money.
To balance these two important factors,
you need to build a strong
and stable financial fortress.
However,
the journey to financial independence
also encounters many obstacles.
One of the most common obstacles
is thinking negatively about money.
Many people believe
that money always brings misfortune
and they judge those
who are busy making money as bad people.
This thought seems to be ingrained in the subconscious
of many people.
I still remember on the day of my marriage,
my wife’s entire family was present and my boss,
a man with a fortune worth
over 500 million dollars,
also attended.
At that time,
my wife’s family members formed the idea
that poverty is pure,
or more broadly,
financial success as something unfair,
even evil.
So they were surprised to find that my boss,
the richest man they had ever met or heard of,
was a gentleman,
courteous and well behaved.
Making money is a game most people just don’t know how to play. — Grant Cardone
It took months,
even years,
for people to adjust to their thinking
and subjective imposition of the rich.
In fact, money brings many good things,
allows you to choose
and live the way you want,
opens you many doors of prosperity,
enjoyment.
However, money will bring negative things
if you are too preoccupied,
value money without realizing that
really this is just one of the tools
to pursue happiness and success.
Money has its own power and only those
who know how to make money
and use it skillfully can see the positive aspects of money.
When money realizes that it is in good hands,
it wants to stay and multiply in those hands. ― Idowu Koyenikan
Right now,
change your thinking,
your view about the value of money
and start new things by accumulating money.
Be determined to make this an indispensable habit,
and then you will find the opportunity
to be financially independent,
to achieve important goals in life is always available
and waiting for you.
“Money isn’t everything…
but it ranks as equal to oxygen.”– Rita Davenport
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46. THE LAW OF WEALTH
The world we live in always ensures wealth
for those who really want
and are willing to follow the laws of wealth
that govern the pursuit of money.
The world we live in is so generous,
always giving us the opportunity
to achieve all our legitimate aspirations,
including the desire to become rich.
You can make money almost everywhere
because there is no real shortage of money.
However, your attitude towards the abundance
or scarcity of money will greatly affect whether
or not you will become rich.
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Consequences:
Anyone can become rich with real determination.
When you cultivate the determination to get rich
and believe in your own abilities,
all your actions will revolve around this goal.
You will not stop doing the work necessary
to make your beliefs a reality.
Just by looking at a person’s actions,
you can tell how determined that person is.
In the book The Instant Millionaire by Mark Fisher,
there is a passage:
a young man goes to an old millionaire
to ask for advice on getting rich.
After listening to the young man for a while,
the millionaire began with the question:
“Why are you not rich?”.
This is also an important question
that you need to ask yourself
before you begin your journey to find wealth.
The answer will reveal a lot of limiting things about yourself,
from doubts,
fears,
justifications to being afraid to face challenges,
procrastinating before change,
All of these will limit your ability to get rich.
Therefore, you need to have the courage
to admit your weaknesses
and find ways to eliminate them to be more confident
on the road to success.
Money has the power to buy you things.
But a much bigger power of money is in generating more money for you.
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47. THE LAW OF EXCHANGE
Money is an intermediary medium
that people use to exchange goods
and services in accordance with their own needs.
Before there was money,
people used the form of direct exchange
of goods and services in exchange
for items to meet their needs.
As civilization developed
and this form of exchange became complicated,
humans invented coins.
Thanks to this intermediary,
the overall buying
and selling process has become much more efficient.
Today, we go to work
and exchange labor to receive money,
then use this currency to buy the results
of other people’s work reflected in the products
or services they provide.
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1st Corollary:
Money is a measure of the value of goods
and services created by people.
The value of goods is expressed in currency.
The fact that a person is willing
to spend some money
to own an item means that he
or she accepts the value of the item.
Therefore, all values are subjective,
personal and based on the thoughts,
feelings,
attitudes
and opinions of potential customers
at the time of purchasing decisions.
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2nd corollary:
Labor is seen as a factor of production or cost.
The psychology of people often considers their “sweat and tears”
or their work to be a particularly meaningful
and deeply personal thing
because this is an opportunity
for you to express yourself.
However, like everything else,
your labor is just an expense in the eyes of the business owners
or the people who hire you.
Therefore, you cannot put an objective value on your labor.
Who is willing to pay for your labor
in a new competitive market determines the value of your labor
and what you deserve from a financial perspective.
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3rd Corollary :
The amount you earn is a measure of the value
of your contribution as seen by others.
The labor market works according
to a very simple law.
The salary you receive will always be proportional
to three factors:
the nature of the job you are doing,
your ability to do the job,
and how difficult it is to find a replacement for you.
In addition,
your salary depends on the quantity
and quality of your contributions compared
to the contributions of others,
combined with the values and expectations
that others have for you.
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4th Corollary:
Money is not the cause but the effect.
The main cause is your work
or contribution to the value of a product or service,
and the result is the remuneration
or salary for which you are paid.
If you want to increase the effect,
you must increase the cause.
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5th Corollary :
To get more money,
you have to contribute more.
To earn more,
you must constantly improve your knowledge,
skills or expertise
so that you can work harder and more creatively,
help increase your self-worth,
and improve the results of your efforts
its own efforts.
The highest paid people in society are those
who know how to promote
and strengthen their own strengths
to add value to the work they are undertaking.
“If a person has the right view of money,
it can solve most other problems in their life.”– Billy Graham
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48. THE LAW OF CAPITAL
Your most valuable asset is your mental
and physical capital and your ability to make money.
The ability to work is the most valuable asset you have.
The amount you are receiving is a direct measure
of your earning potential.
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1st Corollary:
Time is the most valuable resource of man.
Time is the fairest gift of life.
Whoever you are,
whatever position you hold in society,
whatever your profession is,
you have twenty-four hours in a day.
What makes the difference is how time is spent.
Much of your ability
to make money depends on how much time
and focus you have on your work.
Inefficient time management
is one of the main causes
of low productivity
and unsatisfactory results in any business.
This is true for both managers and salespeople.
For example,
numerous studies from 1928 to the present have shown
that salespeople work only about 20% of the time.
The average salesperson spends an hour
and a half each day on direct selling activities,
interacting
with current and potential customers.
The rest of the time is spent communicating,
chatting, reading sales brochures,
making phone calls,
commuting,
and other wasteful uses of precious hours throughout the day.
Managers also face similar situations.
In a recent study,
95% of managers admitted
that an entire 50% of their workday was spent dealing
with matters unrelated to the work
for which they were paid.
And many times they have to participate in low-value areas,
unable to bring out their full productivity.
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2nd Corollary :
Time and money can be spent or spent on investments.
Money and time always have two sides.
In a way,
they are interchangeable
and will disappear as you use them.
Then they become sunk costs
– costs you can’t recover.
But on the other hand,
you can profit from the investment of your time
and money while adding value to yourself.
One of the simplest things
you can do is invest 3% of your monthly income in personal
and professional growth
and in doing better on the things
that matter most.
Set aside an hour each day to read more books
about your area of expertise.
Take some time each week to take advanced courses
and improve your career skills.
Always seek help in life
as well as in your career
so that you can reach your full potential.
You should constantly build a source of intellectual capital,
personal value
and the ability to make money.
Your continued commitment to personal
and professional growth will give you more returns
than you ever thought possible.
This also saves you years of hard work
with lower income and job performance.
The return on investment of time
and money can be huge
Recently, Motorola estimated
that the company was taking back $30
for every dollar spent on training people.
This is considered the highest return on investment of time
and money that Motorola has achieved.
Other large companies
and corporations also report similar gains
thanks to investments
in training employees and executives.
You can also achieve the same effect.
Nothing can give you a big
and effective “breakthrough”
for your money than reinvesting some
of your time and money
to improve your earning potential.
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3rd Corollary :
One of the most effective investments of time
and money is an investment
that aims to increase your earning potential without working.
The purpose of corporate strategic planning is to increase
“return on invested capital”.
This requires organization and reorganization
so that the business earns a higher return
on invested capital.
In a work environment,
your personal investment is emotional and spiritual.
As such, your job is to get the highest possible return
on your human capital,
to increase your “return on strength”.
If a productivity machine is seen
as a kind of fixed capital,
you are a form of mental and physical capital.
This type of capital can produce a large amount of goods
and services if it knows
how to utilize and maximize its capacity.
You need to see yourself this way
in order to form the right attitude in your work.
A wealthy person is simply someone who has learned how to make money
when they are not working. ― Robert Kiyosaki.
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49. THE LAW OF TIME PERSPECTIVE
The most successful people in any social setting are those
who take the time to consider their day-to-day decisions.
This rule comes
from the early research on financial development conducted
by Dr. Edward Banfield of Harvard University
in the late 1950s and early 1960s.
After studying the factors
that many people believe,
contribute to an individual’s financial success over a lifetime,
he concluded that there is one major factor
that stands out above all others
– the time perspective factor.
Dr. Banfield found
that the higher a person’s career ladder
and social position,
the longer one’s time horizons.
A good example of a long-term perspective is someone
who spends ten
or twelve years studying
and practicing to become a doctor.
Successful man has spent a very long time laying the foundation
for a career of a lifetime.
And every society gives this profession the highest respect
of all professions.
We appreciate
and respect the sacrifices
they have made to pursue a career of great importance
and significance to all.
We recognize their long-term perspective.
People with a long-term perspective are always willing
to pay the price of success
for a long time before achieving it.
They think of the “sweet fruit” of the next five,
ten or even fifteen years,
so they decide to “sow the seed”
by accepting sacrifices
for a very long time.
Meanwhile,
those with a short-term perspective can often
only hold low positions in society.
They only know how to aim
for short-term goals
as well as get a temporary income enough
to cover their lives.
These people easily fall into the negative spiral
and deadlock of society
because they do not see their long-term future.
You can move up the social
and financial ladder
when you begin to think carefully
about your actions in a way
that leads to lasting results.
When you know how to organize your life
and prioritize future goals
or ambitions in mind,
you will see the quality of your decisions improve,
almost your life will become better.
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1st Corollary:
Not being overly satisfied is the key to financial success.
Your ability to exercise self-control,
self-control,
and sacrifice the short-term
in order to enjoy greater rewards in the long run
is the starting point of developing a long-term perspective.
This is crucial for financial performance of any kind.
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2nd Corollary:
Self-discipline is the most important personal quality
to ensure long-term success.
Elbert Hubbard has defined self-discipline
as “the ability to force yourself to do
what needs to be done
when it needs to be done,
whether you want to or not.” Herbert Gray,
an entrepreneur,
spent eleven years searching
for what he called the “common trait of success.”
He studied thousands of successful people
and finally came to the conclusion:
Successful people are those who have the habit of doing things
that unsuccessful people don’t like to do.”
So what are the things
that unsuccessful people don’t like to do?
In fact, they are also things
that most people don’t like to do
such as getting up early,
working hard,
working overtime,
taking on extra responsibilities, etc.
Successful people don’t mind doing these jobs
because they know how to look to the future results
regardless of the current method.
Your ability to work through your usual habits
to reach a long-term goal in the future is the best expression
of a successful person.
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3rd Corollary :
Sacrificing the present is the price
you pay for the prospect of long-term success.
When you know how to control the habit
of only doing the easy things or what you love,
when you know how to discipline yourself
to do the difficult but necessary things,
when you know how to invest time and money
When you invest in self-training,
you are also building yourself positive characters
that can guarantee you a better future life.
The person who doesn’t know where his next dollar is coming from usually doesn’t know
where his last dollar went. — Grant Cardone
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50. THE LAW OF SAVE MONEY
Financial freedom comes
to those who save 10% or more
of their income over their lifetime.
Get in the habit of saving a portion
of your paycheck every time you get paid.
What you save today will guarantee your safety
and prospects tomorrow.
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1st Corollary:
Accumulate at the rate of 1/10.
This corollary comes
from George Clason’s book The Richest Man in Babylon.
Start saving 10% of your income today.
You should treat this as a long-term financial accumulation fund
and never use it for any reason except
to secure your financial future.
However, in reality,
most people often use their savings earlier
than planned
because they think it is impossible to predict
when they will fall into trouble
when the current need is urgent.
So, if you plan to shop or travel,
set up a separate fund
to minimize the intrusion
of your financial accumulation account.
The important thing is
that once saving 10% becomes a habit,
you will feel comfortable living
only with the remaining 90%.
And over time,
increase your savings from 10% to 15%,
20% and even higher.
At that time,
your financial life will certainly change a lot.
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2nd Corollary:
Take advantage of tax-deferred savings and investment plans.
Money that is saved
or invested without being taxed accumulates
at a 30% to 40% faster rate than taxed amounts.
According to Dr. Thomas Stanley’s The Millionnaire Next Door,
successful business millionaires think of accumulating their funds
in the form of assets such as real estate,
private companies,
and venture capital sell shares at a high value
so as not to incur taxes.
Invest in retirement plans,
education investment accounts,
stock options programs,
and any other legitimate investments
to accumulate long-term financial resources.
Always take advantage of every penny!
The rich see each dollar as a “seed”
that can be planted to reap hundreds of dollars more,
which can then be planted to reap thousands more. – T. Harv Eker
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51. THE LAW OF DETERMINE
What determines your financial future
is not how much you earn,
but how much you keep.
The ability to earn outstanding money
is always the desire of everyone.
However, when reaching the pinnacle of success,
some people become complacent
and attribute it all to their outstanding ability;
but in fact,
in many cases,
they are the lucky ones to be in a particular business
or economy that is flourishing.
These people spend very comfortably
with the subjective belief that
if they can make a lot of money now,
they will certainly make it in the future.
In fact, the most effective measure of your financial future
is not how much money you’re making,
but how much you’re actually keeping.
Successful people are clear about spending
and saving to compensate for periods
of economic instability
or business downturns.
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52. THE LAW OF PARKINSON’S
Expenses are always increasing to keep up with income levels.
Parkinson’s Law is one of the most important
and well-known laws of the accumulation
of wealth and money.
This law was developed many years ago by Northcote Parkinson,
explaining the needy,
poverty of retirees.
This law states
that no matter how much money people earn,
they tend to spend all
and even overspend.
When income is low,
people will spend less,
but when income is high,
people’s needs naturally increase,
requiring more spending.
In other words,
expenses are always proportional to income.
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1st Corollary:
You will be financially independent
if you know how to break Parkinson’s law.
Parkinson’s Law explains the trap most people fall into.
This is the reason people fall into debt,
money worries and financial breakdown.
It is only when you have built up enough willpower
to resist the intense urges of spending everything you earn
that you can begin to accumulate money
and move forward.
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2nd Consequence:
You will be financially independent
if you know how to keep your expenses below your income
and use the excess to save then invest.
This bottom line can be seen as a “cushion”.
If you can “insert a buffer” between rising income
and rising expenses in your life,
you will have extra money to save or invest.
By consciously breaking Parkinson’s Law,
you will gain financial independence.
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53. THE LAW OF THREE-LEADING
Financial independence as a sturdy tripod includes:
savings, insurance and investments.
One of your main responsibilities to yourself
and to those around you is
to build a strong financial fortress during your work,
to provide a fulcrum
to help you avoid financial instability later.
To achieve this goal,
you need to divide your finances in the right proportions in three areas:
savings, insurance, and investments.
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1st Corollary:
To guard against possible negatives,
you need to have cash savings equivalent to two
to six months of average spending.
Your first financial goal is
to save enough money to support yourself
if you lose your source of income for six months.
It is depositing this savings into a personal account
with monthly interest
that will give you a sense of confidence and comfort.
You’ll be more productive and don’t have to worry
as much about your future plans
when you know you always have money in reserve.
A young woman who attended my seminar on
“the importance of saving money” wrote to me a year later
and told an interesting story about herself.
She said that she had never had
to consider her actual financial situation before.
She spent almost all of her earnings,
even adding a deficit to her credit card account.
As a result, she was always in debt.
However, after my seminar,
she really realized the problem
and started saving a portion
of her monthly income,
starting at 5%
and gradually increasing thereafter.
In just one year,
she had saved the equivalent of two months of income.
Meanwhile,
the company she is working for has some personnel changes
and she has to work with a new boss.
This boss always shows a condescending,
condescending attitude,
often criticizes her
and always sets excessive demands on work.
After a period of trying to endure,
she decided to quit her job
because she couldn’t continue anymore.
She confided in me that her decision
to quit was a big breakthrough for her.
In fact,
up until then,
she had remained passive
and mostly accepted what her superiors asked.
However, when she was not under financial pressure,
she confidently put herself in a higher position
and was more responsible for her own life.
Obviously,
if she didn’t have her savings in her account,
she wouldn’t think about quitting her boring job
and spending her time looking for
a better job with a higher salary.
When you live in such a state of mind and environment,
you will gradually lose your self-esteem and confidence
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2nd Corollary :
You must have enough insurance
to cover any emergency
that doesn’t have enough savings in the bank.
Perhaps the deepest human need is the desire to be safe
and one of the ways to ensure safety is to buy insurance
to deal with emergencies that you cannot afford.
Get full health insurance to cover you
and your loved ones in case of an emergency or accident.
Get insurance for your car in case of a collision
that is subject to liability.
Buy life insurance
so that if something unfortunate happens to you,
your loved ones can still settle down.
Get education insurance
to give your children a solid future,…
In all cases, put yourself
and your loved ones first.
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3dr Corollary:
Your financial goal should be to accumulate capital
until your investments give you more returns
than your work income.
Your life is divided into three relatively clear stages.
The first are the academic years
– the time when you grow up and get educated.
Next is the period of working and earning
– when you start to live
and live independently,
this period lasts about forty years.
Finally are the rest years
– the period when you retire,
not directly involved in work.
Your financial strategy is most successful
and effective
when the money you accumulate from your savings
and investments over the course
of your career yields more returns
than you would ever earn from your day job.
At the time of your break,
you begin to retreat from work
and spend time managing existing assets.
This sounds like a very simple life-long planning strategy,
but it’s amazing how many people end up working at age 65
with very little savings.
Hope this doesn’t happen to you.
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54. THE LAW OF INVESTMENT
Take your time to research, understand
before you invest.
This is one of the most important laws of money.
You should spend a lot of time
thoroughly researching a particular investment
to avoid any possible risks.
The money you intend to invest
is the result of years of hard work,
So before deciding to invest this “labor”,
you should carefully investigate every aspect and detail.
Please request truthful,
accurate and complete information in any form.
If you still have doubts
or concerns about anything,
don’t rush to invest
but patiently wait for another,
more appropriate
and less risky investment opportunity.
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1st Corollary :
The easiest thing to do with money is to lose it.
Indeed, in today’s competitive market,
earning a coin is not a simple matter,
but once you have earned it,
spending it is extremely easy,
almost anyone can do it.
There is a Japanese proverb that says,
“Making money is like digging the ground with your fingers,
spending money is like watering the sand.”
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Corollary 2:
Don’t lose money on meaningless things.
This consequence comes
from the words of oil billionaire Marvin Davis
in an interview with Forbes magazine.
According to Marvin Davis,
one of his principles of success is
“Don’t lose money on meaningless things”
According to this view,
you must have a very clear look
to distinguish what is meaningful
and meaningless.
The line between them is not always clear.
Davis says this principle
is so important
that you should write it down
and put it where you can see it every day.
Treat the money you have as if it were part of your life.
You have to trade many years of hard work
to get a certain amount of money.
That is the reward for your efforts.
That time is a meaningful part of your life
and won’t come back.
Therefore,
you should consider when using the reward of life
because it is financial security.
If you lose money,
you have to start working hard to get it back,
and sometimes,
the opportunity to get started
is not always easy and available.
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3rd Corollary:
Do not be subjective
when you think that the amount of money
you lose is insignificant compared to the amount
of money you currently have.
People who are successful
and appreciate money
rarely accept losing money to useless purposes,
even if it is only a very small part
of their total income.
As the old saying goes:
“A fool and his money will soon part”
or “When an experienced man meets a rich man,
the rich gain experience
and the more experienced will accumulate money”.
Always ask yourself what would happen
if you lost 100% of your money
on a seemingly promising investment.
Can you solve that?
If you can’t,
don’t rush to make an investment decision.
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4th Corollary:
Only invest with people
who have a track record of proving their financial success in past.
I once talked to a millionaire
who rose from nothing in Portland, Oregon.
To have a property value of up
to several million dollars today is
because he always adheres
to his investment principles.
His principle is actually quite simple:
he only works with people who can prove
that they have had success with making
or investing money.
As a wealthy man,
he is often approached by investment sellers.
Each time,
he asked them to exchange personal financial statements.
If the manifest gave reliable figures of their success,
he accepted the offer to buy the investment capital.
Otherwise,
he flatly refused to cooperate.
Because of his clarity
and principle of work,
he has achieved many successes
with steadily increasing profits.
If you learn how this millionaire works,
you will certainly reduce a lot of risks.
Don’t lose money in vain.
If you feel like investing,
revisit this principle
and be determined to keep what you already have.
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55. THE LAW OF COMPOUND INTEREST
Invest your money carefully
because compound your investment will make you rich.
Compound interest is considered one of the wonders of economics.
Albert Einstein described compound interest
as the greatest force in human society.
Your money will increase a lot after a while
you accumulate in compound interest,
you can use the rule of 72 to determine how long
it will take you to double your accrual
at any interest rate.
Divide 72 by the interest rate.
For example,
if you are investing with an 8% return,
divide 72 by 8 for 9.
This means
that it will take you 9 years to double your money
at an annual rate of 8%.
It has been estimated that a dollar invested
at 3% interest in the early years
of AD would be equivalent
to half of the money in the world today.
If this money were made to proliferate and double,
and then double again,
it would be worth trillions of dollars today.
The twenty-four dollars the Dutch
paid the Native Indians in exchange
for Manhattan Island,
if invested at 5% interest,
would be worth more than $2.2 billion today.
Compound interest is a powerful tool in getting rich.
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Consequences:
The key to compound interest is to put your money away
and never touch it.
Once you have accumulated money
and it starts to multiply,
you should never touch
or spend it for any reason.
If you break it,
you’ve already lost the power of compound interest.
Although you only spend a small amount today,
you will have to part with a huge amount later.
In 1935, a secretary in New York
received a $5,000 share of his estate after a divorce.
She took all the money to a seasoned stock trader
who helped her choose the best stocks to buy.
After years of ups and downs
and with compound interest rates ranging from 12 to 15%,
the $5,000 in 1935 is today a huge fortune
of over $22 million.
This money helps her have a comfortable
and abundant life when she retires.
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56. THE LAW OF ACCUMULATION
Every great financial success
is the result of a lot of sacrifice and silent effort.
To be financially independent,
you need to put in a lot of effort.
The most important and difficult thing is
to conquer the needs your temporary desire
to maintain a steady
and long-term accumulation of money.
At first,
this may make you uncomfortable
and you will not notice any change or difference.
But your efforts will gradually bear fruit.
Your accumulated financial resources gradually increase.
All your debts are paid off.
More investment opportunities come your way.
Your life will gradually stabilize and improve more.
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1st Corollary:
As you accumulate savings,
you’re building an incentive
to move faster toward your financial goals.
Starting a financial accumulation program is not easy,
but once you start,
you will get used to it and feel everything is simple.
One of the great secrets to success
is applying the Principle of Motivation.
According to this principle,
it takes a lot of effort to overcome the initial stagnation
and get used to the accumulation of money,
but once you really start,
you will quickly maintain the habit. .
Motivation is an important factor in determining action,
so you need to build and maintain it continuously.
If your motivation is lost or diminished,
it will be difficult for you to recover and start over.
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2rd Corollary :
Accumulating a large fortune is difficult,
but saving little by little will certainly be.
Life doesn’t always allow you to save
or 20% of your income
because you may end up in debt
or just get through the day.
In these cases,
instead of saving 10%,
start saving just 1% of your income
and be determined not to touch this 1%.
Buy a piggy bank
and when you come home after a day of work,
put the change you have for the day here.
When the piggy bank is full,
take it to the bank
and deposit the entire amount into a savings account.
Whenever you get a profit
from the sale of something,
an old debt payment,
or an unexpected bonus,
instead of spending it all,
you put it into a savings account.
These seemingly small sums will start to add up to a degree
that will surprise you.
Once you’ve settled into your life with 1% savings,
gradually increase it to 2%,
then 3%,
then 4%,
and 5%…
Within a year,
you’ll find yourself out of debt and save 10%, 15%
and even 20% of your income
without really affecting your life.
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57. THE LAW OF ATTRACTION
The more money you save and accumulate,
the more money you attract into your life.
This Law of Attraction explains a lot about success
and failure in all areas of life,
especially in the financial arena.
The place with the most money
is where the money is respected.
The more you value for money,
the more opportunities you have to earn.
The reason many people do not accumulate
or earn a lot of money comes mainly
from their own mindset.
This explains
why so many people in third world countries have succeeded
and found themselves in developed economies.
In the new environment,
their way of thinking and thinking will change in a new
and more positive direction to integrate with everyone.
This helps them attract new people,
ideas,
opportunities,
and business resources.
These are important stepping stones to success and wealth.
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1st Consequence:
The consciousness of getting rich
and money attracts each other like a magnet attracts iron filings.
I first came across the phrase “rich consciousness”
when I was twenty years old.
At that time,
I was really impressed with this phrase,
but because I did not fully understand its meaning
and importance,
I was determined to find out.
After years of ups
and downs and experiences,
I realized that
when you cultivate a positive attitude towards money
and believe in the Law of Wealth,
your emotions and hopes become
like a magnet attract lots of money into your life.
That’s why you should accumulate money
no matter what your life or income is.
Start with a small amount
and when combined with faith,
that small amount will bring you
surprisingly large amounts of money.
Oil king John D. Rockefeller started out
as an office worker with a salary of $3.75 per week.
From this money,
he gave half to the church and saved 50 cents.
That amount was not much,
but it was the starting point for his career.
By the age of fifty,
Rockefeller had completely dominated the production
and distribution of American crude oil and fuels.
He is also one of the richest
and the most successful people in the world.
It all starts with saving 50 cents a week.
*************************
2nd Corollary:
Use money to make money.
When you get used to self-discipline,
self-restraint in times of need to break the habit
of spending your hard-earned money,
you’ve proven to yourself
as well as to others.
Other than that you are trustworthy with money.
Years ago,
when I applied for a business loan,
the bank asked me to have five times as much collateral
as I wanted to borrow.
I was surprised at the time,
but later I found out that this is the usual rate
that banks require from first time borrowers.
The fact that the borrower knows
how to save and accumulate assets
is a proof that he
or she can be trusted with money.
After a period of reputable cooperation,
the bank will only ask for collateral twice the amount
of money you want to borrow.
When you start accumulating money,
the opportunity to make money will come to you more.
The self-made millionaires often spend twenty to thirty hours
a month thinking
and researching their finances.
They carefully plan
and organize the accounts.
They consider all costs before investing.
And as a result,
they make better financial decisions than
those who don’t think twice
and make hasty decisions.
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58. THE LAW OF SPEED
The faster you move toward your goal
of becoming financially independent,
the faster that goal will move toward you, too.
Usually,
it takes a long time to notice a change
in your financial situation.
Old habits are hard to break.
Changing your financial life is like changing the course
of a large ship across the ocean.
You can only change step by step.
However, when all the changes are in place,
they will help you get up to speed
and quickly move towards your goals.
*************************
1st Corollary :
Success follows success.
Most of today’s financially successful people have to work extremely hard
to find their true opportunities.
But then,
opportunities come to them more and more.
Success always follows success.
It is important to consider and select these opportunities.
*************************
2nd Corollary:
80% of success will come from 20% of the time invested.
This is quite a remarkable discovery.
Think about it!
With 80% of the initial time
and money you invest in a business,
career,
or project,
you will only achieve about 20% success.
The remaining 80% success level you will achieve
with the final 20% of time and money invested.
Peter Lynch,
former head of Magellan Mutual Fund,
one of the most successful mutual funds in history,
says that the best investments he has ever made were the ones
that took a very long time just bear fruit.
He often looks to buy stocks
that have not increased in price
for many years in companies.
After a period of stagnation,
these companies grew rapidly,
causing their stock prices
to skyrocket 10 to 20 times.
This long-term stock investment strategy has made him
one of the most successful
and highest-paid executives in America.
The laws of money presented
in the chapter explain the importance
of financial independence.
Whatever your starting point,
you can start planning your finances for your life today.
It is important that you answer the question:
“How much financial resources do you need?”.
Only then can you orient your actions
according to the defined goals.
Remember that you are always free to choose.
You are solely responsible for your decisions.
It all depends on you.
If you are persistent enough
and believe in the power of these laws,
nothing can stop you
about having great financial success.
People calculate too much and think too little. ― Charlie Munger
