The Golden Rules Of Money You Should Know
Everyone wants to be rich, to become rich people you need to do a lot of things. One of the thing you must know is the rules of the money. If one day you make lots of money and you don’t know about the rules of money, there will be a higher chance that you will become poor again. If you are rich, don’t want to be poor again, be sure to remember of these golden rules.
1. Budget Your Expenses
When you have money the most important thing is to control your expenses, be sure to keep track of your expenses if possible.
Before you doing before you do budgeting, you need to understand about your monthly net income and consumption habit. Where your money goes, what do you spend on and is that necessary? If you don’t know about these, please start record and keep track of all your expenses. You don’t want to spend the money on something you never need right?
Doing budgeting not only help to understand your financial status, it would help to plan your goal for your future. Never spend more than you earn.
2. Buy Things That Brings The Best Value Not the Best Price.
Whenever you want to buy something, the price isn’t the most important manner you should look for, the most important thing is how much value it can bring to you. If you buy something that isn’t useful at all, if it’s very cheap, but it still considered no value because you won’t use it at all. You would consider selling it if you don’t really use it. So, it is not about the price of it; it is about how much value you get.
If there is two options, the first option of product/service cost you $100 that would be able to helps you to make another few bucks of the dollar. But the second option of product/service is a very expensive that cost you $1,000, but in return it brings you more profit for another $1,500 or even more. Which would you pick? The cheaper one or the one that is more valuable?
3. Understand the Taxes
Understand how the tax affects economy and where the money goes. Understanding the tax in depth for each country will give you a better economy view of a country.
4. If You Can Solve The Problem with Money, Don’t Owe Anyone.
Don’t owe anyone if you can solve the problem by paying someone to solve it. Free thing is mostly not free, it will end up being the most expensive one.
5. Learn To Use Leverage Of Money
Understand how leverage work and how it would impact the economy in depth. Not necessary to apply the leverage immediately in your life, but in one day in the right time the money leverage would be useful for you. Don’t forget, the risks are being leveraged too.
6. Don’t Buy Luxury Things That You Can’t Afford
Don’t use the money to buy the unnecessary things you can’t afford, especially the first class flight ticket unless you have a few million dollars in the bank. If not, don’t buy it unless it bring you a lots value than that.
7. Learn To Invest
Don’t keep all your money in bank for doing nothing, Inflation can occurs in anytime and money will be depreciate. Learn to invest can helps to maintain your asset value or even grow your asset.
8. Money Can Solve Money Problems But Not All Problems
Money can solve all the problems related to money but not all problems. Money can’t solve all the health issue, if you are sick, you are sick you need to rest and take medicine. Having more money will only help you get a better resources to cure your health issue, but cannot guarantee your health issue can be cured.
9. The More You Learn, The More You Know. The More You Know, The More You Earn.
Never give excuses on learning a new thing, things keep changing learn new things. It will open a new door for a new opportunity. The more you know, the more opportunity to have to make more money.
10. Don’t Be Money Slave
It’s doesn’t matter how much money you make, it’s about how do you make your money. You can work 100 hours a week and have not your own life with family or you work a few hours a week earning the same amount of money you work like 100 hours. Don’t chase for money and never become money slave.
Work smarter, not harder. Set a goal, and work for your dreams and future. It’s not about how much you make, it’s about how you make the money.
11. Don’t Invest Money Before You Invest Time On Researching.
Never invest money on something you don’t know. Mr Warren Buffett said that “never invest on anything that you don’t understand“, Invest something you really know. Even though if you know it, but still recommend investing your time on researching it again before you invest your money.