The Laws of Money; 13 Top Secrets of Becoming Rich
Have you ever wondered why, despite the many earning opportunities that come by certain people, they are still poor?
Well, one huge difference between the rich and the poor is that the successful used their money to their advantage while the unsuccessful once use their money foolishly.
13 Laws of Money; Secrets of Becoming Rich
We share 13 secrets of money that the rich understand and follow. They are called money laws.
The Law of Exchange.
This law points to the fact that money is a medium through which people offer the goods and services in exchange for others’ products and services.
Before the invention of money, people use the barter system to get things they wanted.
For instance, if you had wood and lacked lighter for your fireplace, you may approach someone who has a lighter and gives him some of your wood in exchange for his lighter.
Presently, the law of exchanges interpreted as the amount of money you get for a product or service dependent on the value attached to that service.
Thus, the higher the value placed on the service, the more the amount of money gotten from it.
The Law of Abundance.
This law states that the universe provides money for anyone who desires it and is willing to follow the principles that guide its acquisition.
A perfect example of this law is the bank. The bank realizes that people keep the money but do not come to collect them at once.
So, money remained in the accounts of customers without being used. Hence, they came up with a scheme to invest those monies and get more.
As long as the customers do not come at once to collect the money, there will always be money for the customers when they ask for them.
In this digital age, there is an endless supply of money every day. Money is not scarce.
It is the correct knowledge and skills needed to make money and the discipline to obey the scarce principles of money.
The law Of Capital
According to this law, your most valued asset in cash flow is your earning ability, mental and physical capacity.
The amount of money you earn today is a product of how much you have developed you’re earning expertise. So, the higher your ability to earn, the higher the money you make.
In essence, the time you invest in learning and equipment yourself determines how well you can handle tasks.
Subsequently, one of your significant focuses in life should be to spend your time in such a way that you will have an increase.
The Law of Saving
This law states that a financially free person has disciplined himself to save at least 1/10 of his earnings all through his lifetime.
People make a common mistake by trying to save what is left of their gains after they have paid off all bills, but often there is no money left.
Hence, the easiest method to save money is to pay yourself first. This act involves taking a portion of your earnings and saving it separately before spending on other expenses.
To build wealth, you must save more money than you spend. If you spend more than you save, you might end up being broke.
The Law of Conservation
The Law of Conservation asserts that it’s not how much you earn, but how much is saved determines your financial future.
Some people make a lot of money during their lifetime, but they go broke and miserable when they retire.
On the other hand, some people do not make much money; however, they live comfortably through saving and the judicious use of their money, even after retirement.
The key to wealth accumulation is gathering as many assets as possible and cutting down liabilities and unnecessary financial obligations.
The Law of Time Perspective
This law states that the most successful people in any society of those that consider the longest time when making day to day decisions. It is quite easy to make choices based on immediate satisfaction or benefit.
However, this act does not secure a successful future. If you look around society today, you will observe that people at the bottom usually have a short-term focus.
This attitude is why people will agree to vote tyrants into long term leadership positions because of a few bucks that won’t last more than a day.
The degree with which you are disciplined to delay gratification determines the level of success you will attain.
The law of Three.
The three legs of the stool or financial freedom are saving insurance and investment.
To be financially free, you must endeavor to balance your finances into these three critical areas properly.
To ensure a comfortable retirement, you must take steps towards these three directions early enough. At age 22 – 60, which is your earning years, you ought to save money, make suitable investments, and protect yourself against financial risk.
Use an insurance scheme.
This could be said to be the most prestigious law to Understand. To gain long term financial freedom, it says.
Expenses rise to meet income. No doubt you have experienced a situation whereby your earnings increase, yet there’s usually nothing to save because there seems to be a need that makes you spend every penny to be wealthy.
You must try as much as possible to break Parkinson’s law from your life, and the best way to break from this is to increase your expenses at a slower rate than your income increases and then invest the difference.
The law of investing
This law is short and straight forward. It says investigate before you invest. One of the most straightforward rules to ensure life jump security is never to lose money, although losing is inevitable.
If you are a Ricks taker, you must ensure that your loss is not based on your lack of proper information. Therefore, you must look into investment options with care and never rush into them.
An old saying says when a man would experience a man with money, the man with experience soon has money, and the man with money gets to experience. For you not to end up with experiences, make only wise investments.
The Law of Accumulation
The Law of Accumulation argues every tremendous financial achievement is an accumulation of hundreds of small efforts and sacrifices that no one ever sees or appreciates.
Success in any field requires patience and persistence. Many people refuse to accept this aspect of life and so decide not to get started.
This reality of life is that if you choose not to start now because you’re scared of making sacrifices, you will pay those sacrifices whenever you’re ready to begin.
Hence, to attain a secure financial future, you must start saving early and keeping being consistent with it.
Unless you win the lottery, you can never be rich in Overnight. Wealth accumulation takes time.
The Law of Accelerating Acceleration.
This law states that the faster you move towards financial freedom, the faster it moves towards you. This law seems to explain why successful and wealthy people seem to have more success and riches easily.
Well, the reason why money seems to increase much more rapidly for those who have a lot is that they can do more things.
They could make their investment portfolios larger. Their interest in savings They can hire more experienced people to handle and expand their businesses.
Wealth accumulation is a long process when you start, but with consistency to your long-term goal, your riches begin to increase rapidly.
According to this law, humans are living magnet. We invariably attract into our lives the people, situations, and circumstances in harmony with our dominant thoughts.
This low explains that the life you’re living today is the outcome of your past thoughts. Hence, if you change your thoughts, your life will be transformed.
The movie and the book, the secret perfectly explains this phenomenon. It explains that the universe is subject to our thoughts and brings our most dominant feeling.
Using this law, you can change the financial state by thinking rich and focusing your thoughts and business goals.
This action alone can bring opportunities your way and stir you up to pursue your goals.
The law of compound interest
on those savings is the first step to accumulating wealth. It does not end there. It will be best if you had a goal for your savings else; you might spend it unnecessarily.
According to this law, investing your money carefully and allowing it to grow into compound interest will eventually make you rich.
Many people fail to realize that if you leave your cash, collecting compound interest for a long time, even a small amount of money can turn to a significant amount.
For instance, a person starts saving $100 every month at 10% interest from age 21. By the time he or she retires at 65, they would have become a millionaire.
The golden rule to compound interest is you don’t touch the money that you save.
To be able to amass wealth and remain wealthy successfully, you must understand how money works and abide by its rules.