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10 Laws of Money: What You Need to Know for Success
04.10.2024 10:20
A person calls himself rational because he is able to see patterns in things that at first glance seem absolutely chaotic and not amenable not only to comprehension, but also to intuitive understanding.
Having found patterns, people create rules from them – from personal habits to social laws.
Following the laws brings order to life, and sometimes life can not only be brought into order, but also qualitatively improved.
This is especially true when it comes to following the laws of money.
Not the laws of the financial market regulated by politics and social mathematics, not the natural differences in the psychology of the rich and the poor, but the special relationship between the individual and money, as a means of opening up financial freedom, and with the reasonable use of accumulated capital – and an instrument for the harmonious transformation of the world around oneself.
Financiers of all times puzzle over these laws. What is the formula for success? The Laws of Money are deduced by George Clason in his famous book "The Richest Man in Babylon".
This issue has been thoroughly studied by Brian Tracy. Each of his books is a bestseller. Many laws are duplicated in different books. Having studied different theories of basic laws, based on the experience of financial gurus, we will try to derive our own formula for success.
Taught at various trainings - from business centers to spiritual ashrams, replicated in popular books, all the Laws of Money, nevertheless, come down to ten basic ones.
First Law: Affordable Abundance
Despite any crises, there is enough money in the world for everyone. It's just that this huge amount of financial opportunities is only available to those who are truly ready to follow the Laws of Money.
Second Law: Value and Exchange
Money is just a means, an intermediary, a kind of universal arithmetic sign with which people evaluate and exchange their own labor, knowledge and material resources invested in the production of goods and services rendered.
The Third Law: Fixed Capital
Thus, from the standpoint of money (and not only), the main values are physical and mental capital, the ability to work and earn this money.
The Fourth Law: Forethought
Living an ordinary life and, with full right, enjoying today, it is always worthwhile to take tomorrow into account with foresight. And the longer the period taken into account, the better.
Law Five: Saving
Wealth is not determined by how much a person earns, but by how much he has left.
To achieve financial freedom and a stable future, you need to set aside at least 10% of your income for the future and for unexpected expenses. This will be the most useful habit to start saving money with.
Law Six: Insurance
No matter how far-sighted and prudent a person is, not everything is within his will. It is necessary to protect your savings from unforeseen situations. The reliability of investments should be insured, as well as your own life and health.
Law Seven: Investments
The most important money question, transferring from the Laws of Personal Money to global financial and economic laws. The best way to increase and save your money is, of course, to make it work.
Learning where to invest a certain amount of money should take as much time as it took to earn that money.
Law Eight: Multiplication
Even in the most favorable course of events, it is necessary to limit the desire, characteristic of people with any income - to spend more and more, increasing expenses in proportion to the cash inflow.
Great financial achievements are always the result of willpower, limitations and even certain sacrifices.
Law Nine: Attraction and Acceleration
Over time, with correct and uncompromising adherence to the Laws of Money, having overcome the initial inertia, financial independence and the opportunities that money provides will increase with noticeable acceleration.
This can be reduced to the banal axiom “like attracts like”; in reality, the larger the capital, the more actively the global financial and economic laws operate, which are basically subject to the same Laws of Money.
Law Ten: Know why you need money
What are you going to spend them on, how much, and at the same time, are you going to develop yourself? A strong cash flow will certainly destroy an unprepared person as a person and as a financial value.
No matter how much money a person has, it should not reduce his personal space and time!
Earlier I talked about how to recognize that your boss doesn’t like you.
