This was principles that were taken from the bestselling book.
“Richest man in Babylon” was written by George S. Clason in 1926
and the story is set in a "Babylonian" era.
He talks about the seven principles a person needs to have, in order to
become wealthy. These are some of the basic ideas you need to apply
to your own life.
Principles
Pay yourself first
Always pay yourself first before you use it for your expenditures. At
least 10% of your income should go to your savings. This is the
money you are going to use for investments and build your wealth.
Control Your Expenditures
Think about all the things you are getting for yourself. Do you
really need it or because you want it?
Most of the time we are attracted to material things but we can live
without it. Instead of eating out at expensive restaurants for your
date, why don't you try cooking a meal for your romantic evening?
Be creative and find ways to control your spending.
Invest Your Money
Learn how to invest your money. If you don’t have an idea or
investing is foreign to you.
Get some books or learn from a mentor.
It's important for you to grow your money otherwise it will lose
value every year due to inflation and rising costs.
Preserve Your Wealth
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Always be careful of the investments you make. If the deal sounds
like it's too good to be true, then it's probably is. Safe guard your
money and take calculated risks. Be an intelligent investor and
take Warren Buffet's advice. He gave 2 rules to his company's
CEOs. "Rule No 1 - Don't lose money.
Rule No 2 - Remember Rule No 1, simple but a thoughtful
advice.
Your home must be a profitable investment
This relates to your personal home. Make sure when you get your
own home, it’s a good investment. Which means it is at a good
location and area. So one day if you are thinking of selling it, you
will make a profit out of it.
Insure your future earnings
Have a retirement plan and don't depend on the government to
provide for your golden years. You are responsible for your life and
fate. Get proper protection in the form of life and medical
insurance and it will provide you a as a cushion in your life later.
Increase your ability to earn
If you want grow wealthy much faster, than you got to increase
your ability bring in more income. Learn a new skill and
knowledge that's going to make you more valuable to your
company. Even better if you are able to start your own business
and increase your earning capacity.
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Use these seven principles to guide you in your life and make
better financial decisions.
Most of us have misconception that you need a big fat paycheck to
get wealth. That is not true in most cases. It doesn't matter how
much you are earning at the moment.
If you are not prudent, you will not be able to accumulate your
wealth.
For instance, professionals such as doctors, pilots and lawyers
might have a high earning power but if their monthly spending
grows at the same rate as their income that spells trouble.
To preserve your wealth can be difficult if you don't know how to
go about it. There are many ways to grow your money but one bad
decision will impact you in a big way.
How do the richest people in the world preserve their wealth?
Thirst for knowledge
The wealthiest and richest people are also some of the most hard
working and have a big appetite for knowledge and books.
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Tony Robbins, one of the best peak performance coaches in the
world read more than 700 books and listened to audio tapes to
improve himself.
Today he speaks to thousands of people and influences them in a
positive way. Which brings us to the next subject, rich people get
richer by influencing a large number of audience.
When they are seen as an authority thousands of people go to him
to learn his techniques and beliefs.
Someone with an authority like Tony Robbins for instance.
Do you know how much is his private consultation fees? A million
dollars, that's his price tag. He has placed such a high price tag on
himself because he values his time.
Every hour is used to do something productive and improve his
business and his life. You need to have a high commitment level
and make a promise to yourself, that you will do whatever it is to
succeed.
It doesn't matter what obstacle or challenges comes your way. You
will face it straight ahead and just go right through it.
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Thomas Edison did 1000 experiments before he invented the light
bulb. Do people have that kind of persistence and drive? Usually
after 2 or 3 times of failing, we will just give up.
But what if the 4th time you do it, it starts to work? So near yet so
far, that's how close we come sometimes.
Read and learn as much as possible. Try new things and don't be
afraid to make yourself look like a fool while you're at it.
Richard Branson
Richard Branson is not afraid of looking silly; he does what he
believes in. His latest company, Virgin Galactic will be the first
passenger space shuttle to space.
He is an eccentric business person who has a different way of
thinking is Richard Branson. There was a story about him as well.
When he was stranded in a tiny airport in an Island.
He and his wife were supposed to take a flight out of the Island but
were stranded when the plane had technical difficulties. He
thought of one of the craziest ideas ever. He start going through
the phonebook and looked for a charter flight company.
Finally he got one, a twin engine that seats about 30 people. It cost
about few thousand dollars. What do you think he did next?
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Did he pay all of it? No, instead, he found a white board and wrote
Virgin Airline (this was before the formation of Virgin Airlines) at
the top and wrote a message to the other people who were
stranded as well.
He wrote on the board, $200 per seat to their destination. In a
matter of minutes, all the seats were sold out and he even manage
to get free seats from their profits. Is that the kind of thinking you
would like to have?
He has more than 300 companies under the Virgin brand and he
has his own private island.
How did he get there in the first place? His first business venture
was when he was still in his schooling years. He started a
magazine, even though he wasn't a writer and he had no idea how
to publish one.
All he knew was to start a niche magazine and get clients to
advertise in it. He started cold calling all the local companies for
clients.
He didn't even have a phone but he used the public phone at
school which used coins. He began to call them one by one; he
wanted to secure a few clients to get a working capital so that he
can publish the magazine.
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Basically he had nothing with him, only a simple idea and he
learned how to do it as he went along. Now he's about to space in
his own space shuttle. He achieved most of his dreams and then
some.
They are always looking for ways to improve themselves and their
mindset. The people they associate with are very important. By
meeting different kinds of people they learn new things and
leverage on the person talent and knowledge.
They usually have good contacts so it makes it easier for them do
business.
For instance Donald Trump became bankrupt and he was in a
billion dollar debt. How did he change his fortune and made his
riches again. Is it because he was lucky? He knew the right people
and had the right knowledge. It's the fastest way to success.
Even if you don't know anything about a certain subject, meeting
an expert on the subject can fast track you and give you a better
understanding.
Some people are willing to go the extra length just to meet their
mentors. Would you fly across the country just to go for a cup of
coffee with your idol?
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That's the kind of mindset they have and it has made them
successful. Surrounding them with positive people and the
determination to do their best at their work drives them to success.
They crave for success and will do whatever it takes to get them
there as long it's legal.