In today’s article we will talk about 5 money laws that makes people rich.
Ignorance of these energy sources leads to empty pockets — even for those fortunate enough to have high salaries.
Yes, they have money. But this is temporary. Very soon they will part with them and the money will end up in the pockets of completely different people. The thing is that it is impossible to keep money without resorting to reasonable handling skills.
So, meet five financial skills that will make you “financially healthy” and rich:
1) Positive cash flow
Cash flow is the difference between the amount you earn and the amount you spend.
To fund financial events, it is essential that you have positive cash flow. In other words, your income must exceed your expenses.
If you spend more than you earn, this means only one thing — that you took out a loan (this is why you will not see wealth like your ears).
2) Bad things happen
It is important to have several different incomes so that our sources of positive cash flow are more profitable and stable.
And, most importantly, make it reproducible under any, even the most unfavorable circumstances. Therefore, if one (or two, or three) of our sources of income suddenly falls apart, then our family will still have “something to live on.”
3) Save money, but not for the purpose of spending it.
One of the biggest mistakes many people make is saving money just to spend it.
Let me remind you that rich people do not accumulate money, but “income assets.”
Or, in the words of Bodo Schaefer, they get themselves a “golden goose”, insignificant golden eggs. Those. I’m thinking of investing. Dividend-paying portfolio.
4) Make sure the house you live in is not your only investment.
Investments are about common sense and risk management.
The main goal of any succesfull investor is obtaining a large balanced “basket of assets”. Don’t invest all your money in just one asset class (real estate, gold, business, etc.)
5) In old age, we do not need a “pension”, but income.
We all need a large flock of “golden geese” that can fend off any “black swans”.
Therefore, try to start creating reliable sources of income as early as possible.