Making money is a game you can win by applying my learning of Best Financial Rules To Build Long-Term Wealth.
This is not a get rich quick scheme or a MLM program to join. Nor attending a course or reading an e-book. Making money has a set of unspoken rules and principles.
Here are the principles of making money that I’ve learnt from the best financial minds in the world and personally using to increase my net worth and income.
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Lets start!
- A growth mindset is a prerequisite for wealth. "If you don’t think you can be wealthy, you never will be." A fixed mindset has killed more financial dreams than a lack of talent ever will.
- If you can’t manage ₹1,000, you won’t be able to manage ₹1,00,000. It is not the amount that matters, it is your psychology. Your money mindset applies no matter what tax bracket you’re in. Change your financial mind to change your financial life.
- Multiple source of Income. One source of income will create stability in your life. But the second source of income will change your psychology. And the third source of income will change your life.
- Mindset and Wealth creation. Wealth won’t be created with an employee mindset. An employee mindset trades time for money, asks for permission to create and begs for a raise and promotion. Employees rent out their time for money. Instead, spend more time in an entrepreneurial mindset. Entrepreneurs only see business opportunities whereas others see problems. They don’t wait to be told what to do. They don’t ask for permission but sometimes ask for forgiveness. They create their own financial future.
- Your income growth will never exceed your learning rate. The more we keep learning, the more our earning grows. The day I stop investing in my own development, is the day my income dies. The sad reality is most people are dead by 40 but aren’t buried till there 70.
- Keep rising the level of your financial goal. You don’t rise to the level of your financial goals, you fall to the level of your financial systems. You first make your financial systems, gradually increase the level . And your financial systems will make you.
- You don’t need permission to start. There are no gatekeepers and even fewer barriers to entry to starting a business. One can start a niche six-figure business with a laptop, WIFI, and half a brain. A Tech or Finance blog, online coaching platform, YouTube channel, online selling of product and services are some good examples. If you aren’t making WIFI money, you are making a big financial mistake. “There are 5 billion people on the internet, are ready to consume your product and services.
- Think like a venture capitalist. Take small, calculated risks that have limited downside, but unbounded upside. Also known as Risk-Reward ratio. You don’t know what risk will pay off. But you can increase your rate of success by taking more shots. "The biggest risk is taking none at all."
- Use your money to buy back your time. “The only difference between a rich person and a poor person is how they use their time.” — Robert Kiyosaki.
- Choose your circle wisely. Most people know that they are the average of the five people closest to them. But they still choose to hang around losers with poor money mindsets. Most people know their employers don’t give a sh*t about them. Yet most will show deep loyalty.
- Control your expenses, but focus on increasing your income. After a certain point, cutting expenses reach a diminishing return. Spend most of your time and energy making more money not cutting the expenses.
- Align yourself with leverage and scale. Leverage detaches your time from your output. Scale detaches your output from income. With enough leverage and scale, few hours spent writing a blog post could make you thousands of rupees every month.
- Sell yourself. "If you are good at something, never do it for free." Get A skill First and use it to make money. painting, dancing, playing an instrument, sketching, are some Hobbies which can be used to make money. Making your first ₹10 online validates your skill set. Making your first ₹100 online validates your market. Making your first ₹1,000 online validates your business model. Making your first ₹10,000 online validates your ability to scale.
- Take financial investing instruments seriously. Stock market, mutual funds, gold, property, REITs, ETFs, plays the Major role in long term Wealth creation. so invest wisely in these.
- Once you’ve won the game, understand that you can leave it. Making more money will only solve your money problems. It won’t fix your mental health or your relationships.