Image Credit: Google
There are certain rules the rich abide by and follow that makes them rich. They know if those rules are broken, they will tend to poverty. They know there's no safety and security in being poor, when they keep to these rules, money keeps flowing to their hands and they never tend to poverty. These are the five rules.
(1.)SALARY ALONE WILL NEVER MAKE YOU RICH
Salary can never make you rich to achieve that financially stable life you dream of. The life of financial peace of mind you desire. When you work, you keep selling your time for money which can be harmful to you. When you spend the next thirty days working, you already have bills and expenses lined up to cut that salary next to nothing making financial tough for you. You need to start working on yourself and creating your future through developing your skills and side hustle to create your future.
(2.) INFLATION DESTROYS YOUR MONEY
Inflation is currently high and might keep increasing, you need to know that the higher the inflation, the lesser the value of your money becomes. When you save money in the bank, the value of your money depreciates. The N1,000 of ten to fifteen years ago is almost equivalent to N100 now. That amount can buy more years ago but can only buy less now because of the impact of inflation.
(3.) BUY ASSETS AND NOT LIABILITIES
When the rich buy assets, they are creating a comfortable tomorrow. They are also using it to create a future of financial security and steady cash flow for them. When they buy assets, it makes money work for them and they live above inflation. When they buy assets, they are never a slave to salary anymore and they never depend on a single source of income again. They reduce their liabilities to little or nothing to create their future.
(4.) PAY YOURSELF FIRST AT ALL TIMES
The rich developed the habit of paying themselves first before settling any bills or doing anything. The rich use that as a means to create the future and an act of financial discipline to know what goes in and out in their finances and gives them the capacity to manage their finances prudently. In paying themselves, they can create assets than liabilities.
(5.) USE COMPOUND PRINCIPLE
Through compound principle, the rich use this law to grow richer and double or triple their money within a certain time frame. Some call the compound principle the eighth wonder of the world because of the mystery to increase and grow your money. For example, if you are a stock investor, when you buy dividend-paying shares, reinvest the dividend and buy more, keep compounding till the market moves at a rate that grows your income better and makes you richer.
Image Credit: Google
These five money rules are what the rich follow that makes them create wealth in the medium to long term and worry no more about their financial future.
Image Credit: Google
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