I have already talked about it in the article on financial freedom, in which I suggested that you live on 70% of what you earn each month. Therefore, I consider this one of the first golden rules of wealth. It’s an easier way to start managing your finances: set aside to save 10%, and gradually work your way up to 30% or more.
Programming your life like this requires a lot of discipline. Any person starts walking two kilometers, goes to five, and begins to jog lightly until they reach marathons.
In the same way, follow the golden rule direction and start saving at least 10%.
The big secret at the beginning is not the percentage you save, but you can manage your resources, start and do that every month.
A few, starting with the first of the golden rules of wealth , your assets will appear.
2 – Gold works diligently for the prudent man who, possessing it, finds for it a lucrative employment, multiplying it like cotton flakes in the field
Gold works diligently for the prudent man
Here comes one of the most basic wealth management noho stock: the bank is that you have to pay interest for you, and not the other way around.
Unfortunately, it is something that few respect. And Clason is far from alone in extolling that golden rule. Albert Einstein once said:
” Compound interests are the most powerful force in the universe and the greatest invention of mankind, because they allow for a reliable and systematic accumulation of wealth .”
The compound interest account is simple : Invest 100. At the end of the month, you have 101. Next month, you will receive interest on 101, and you will have 102.01. And so on.
I have recommended here something that may be better for your wealth building , a passive income based on good dividend paying stocks .
With a regular investment in banks and the like, you earn only once.
To invest in dividends , you earn twice: with the valuation of the company, and with dividends. Here is one of the great golden rules of wealth.
Over time, you will be able to increase your investment without spending anything just by using the dividends to buy more shares . See more by watching mine free video games on the matter.
This rule is also derived from the first. Once you’ve disciplined yourself to save a portion of your earnings each month , don’t let this feature stop.
Some banks facilitate this action, and automatically apply any value above so many reais in your checking account. These investments are far from return champions, but it’s good to know the resource exists.
To know where to invest , learn to calculate three factors: profitability, risk and liquidity .
cost effectiveness
