Money is used to facilitate all transactions. It serves as a medium of exchange between two or more people. Without money, the world cannot go around. Everyone needs money to cater for their basic and secondary needs. Every day, the street gets busy with people moving from one place to another. When you stop people and ask them why they are hurrying, they will tell you that they are off to make money. What exactly do they mean by that? And does making money have certain rules?
If you have never had the opportunity to talk about money with your parents or mentor before now, relax! And enjoy this content. This is because certain principles guide money-making and building wealth.
Fundamental Rules of Money
You Must Have a Better Money Mindset
Many people are raised wrongly, and it is no fault of theirs. They grew up constantly hearing their parents talk about how difficult it is to make money. They grow up watching their parents struggle to feed and cater for them. Therefore, growing up, they have the “money is difficult to have” mentality. Some parents tell their children to be content with what they have and be grateful. Being content isn’t the problem, but they try to “moralise” poverty. That habit is terrible. If you are among the people brought up that way, you need a mindset shift because there is nothing wrong with wanting more.
And please, the love of money is not the root of all evil. Wealthy people are not greedy or evil. Your belief about money will determine how much you make in life. When you have a positive mindset towards money, you will have a better relationship with it.
Spend Less Than Your Earning
There is no problem with being a spender, but there is a problem with spending money that you don’t have. If you love to shop throughout the month, be prepared to be someone who earns that much. To have enough money, you need to understand the relationship between how much you earn and spend. The gap between them will determine if you will be rich or poor. For instance, if your monthly earnings are $50,000, and you have plans to spend more than that, you are on your way to financial difficulties. You have to look for a way to spend nothing less than $40,000 so that you can save at least $10,000.
Be Ready to Serve
When you serve people, you will be exposed to more knowledge. Be ready to offer your service to as many people as possible. It will help if you make an impact; with that, you will have more ideas on what to do. Many people have their money rules, and maybe you do as well. Still, you cannot build wealth by living by your rules alone without relating with other people. If there are financial gurus in your field that you admire, be ready to follow them and learn from them. Most of these wealthy people you know didn’t get rich by keeping to themselves. They got rich by impacting many lives.
Learn How to Position Yourself
The positioning depends on how well you define yourself and the service you offer. Many people are doing the same thing, but if you place yourself well, you will be noticed. You have to be creative and innovative to position yourself well. For instance, if you own a fast food restaurant, don’t position yourself as someone who offers cheap food. Instead, you can say you provide meals that are delicious and affordable. With this, you can influence customers’ perceptions positively. There are many ways that you can make your customers always want your service. It may be your ability to deliver promptly or your honesty in dealing with customers.
Don’t Be a Hater of Money
Why do you hate something that you cannot do without? The concept of hate should not be applied to your relationship with money. When you love money, it will give you the desire to have it in abundance. It will reduce the unnecessary nervousness that you feel when you think of ways to make money. An unresolved issue with money is unhealthy. You cannot live a comfortable life if you don’t have the means to care for yourself. The reason why some people have negative feelings toward money may be a result of what they hear from their religious leaders. Nowadays, at any given opportunity, many leaders preach about how money is the cause of social vices. When this belief system is inculcated into the congregation, people begin to hate money. Spiritually, it is not wrong to want to have money because you are human, and you need to pay your bills.
Study Smart Investors
When you study other people, you will learn how to do things. This can be an exciting experience. You cannot be a better person if you don’t know what to do. And knowing what to do begins with observing those who are achieving the result that you desire. Studying smart investors will allow you to understand how money goes around. When you start to practice what you see, and recognise there is a problem, it will be easier for you to approach such people for assistance. If your family had made you hate money from the stories they told you while you were young, it is time for you to re-shape your mind. One of the ways to do that is by looking at money from the perspective of great people.
Pay Yourself First
This rule of money is fundamental. Many people seeking ways to be rich always skip this. For instance, when people receive their paycheck, they are supposed to set a particular amount aside in their emergency account. Surprisingly, people always fail to do this. Once they receive the money, you will see them ordering things. When you order coffee and other items, you are giving your money to that company. Don’t pay your favourite coffee shop by ordering coffee unless you have paid yourself. Here is the idea. Before giving your money away, ensure you keep something for yourself. If you don’t know how much to keep aside, you can save 1/10th of what you earn monthly.
Control Your Expenditure
The only way to control your expenditure is by having a budget.. As humans, it is natural for you to want to spend money. With budgeting, you will achieve financial stability. If you don’t have this financial habit, you can start adopting it now. With this, you can track your spending and income. Have you ever spent money, and at the end of the day, you are left feeling like you were robbed? It is probably because you had no budget. With a budget, you will see where your money went. With this, when you are faced with many decisions, you will make better choices. It also prevents you from running out of money.
Set Financial Goals
We all have a big picture of how much money we want to make. We all want our big picture to become a reality, so you need to put everything you want in writing. Goals setting does not have to be about what you want in the long term. It could be about how much you want to make daily or weekly. With your goals well written down, your steps will be well guided. It will be easier for you to achieve your target. Please, note that your goals can be short, intermediate or long-term based. Do you have an aspiration? Then, put it down in writing.
Be Ready to Start Early
The reason why most people never get started at all is that they don’t want to be small. They fail to realise that people at the top started from below. Those who start making money early have enough time to make mistakes and correct them. They have more opportunities to grow their money. No one will take care of you. You need to look out for yourself.
An intentional person will be able to focus better at work. They will easily gain clarity on what they want to achieve—being deliberate means that you are aware of what you are doing. It takes a focused mind to know where he wants to invest all of his time. When you are not intentional about your life, it will be challenging for you to understand what is going on. If you feel so lost on the inside, you are never too late to find yourself.
Decide to Be Kind
Rich people are not wicked. They are among the nicest of people. This is because it takes a kind person who is patient to mentor and teaches others how to be successful. You must choose kindness daily, not because everyone deserves it, but because you are you. Harold Kushner said, “Do things for people not because of who they are or what you think they will do in return, but because of who you are.
Ask “How” Before You Dive Into It
You need to think of money in terms of time. When you are introduced to a business opportunity, don’t dive into it. Please don’t put your capital into a business that you don’t understand its function. Take your time, and ask all the necessary questions before proceeding. This will prevent you from losing much money while trying to build wealth.
Be an Active Listener
You need to be an active listener to get the details from those who have passed through the stage you are in. Listening is one of the most fundamental skills you need to acquire. Don’t be someone who does all the talking without giving other people the opportunity to express their opinion. How well you listen will impact the volume of information you have at your disposal. Listening aims to obtain as much information as possible from the right source. The more you listen, the more you learn.
Make Time for Self-Reflection
It is challenging to know if you are on the right track if you don’t make time to reflect and think. Self-reflection should be done daily or weekly. It doesn’t take much time to think about yourself and how you are doing. Often, people don’t understand that the ideas and big vision they need will come from them self-reflecting on what they are doing. If you are yet to start self-reflection, begin immediately because it prevents you from missing out on the big picture.
Don’t Fail to Rest When Necessary
In trying to make money, you need to prioritise self-care. If you don’t take care of yourself, every other thing is likely to suffer. Your physical and mental health is a priority before anything. Life can get busy, but it is not a good excuse for abandoning your health. If possible, register in a gym and exercise as much as possible. Exercise helps to keep you fit, and it clears the mind.
Try to Avoid Debt
The stress from debt is unexplainable. It is one of the reasons why some people work so hard, and they have nothing to show for it. The deeper you are in debt, the more difficult it is for you to achieve financial stability. Debt can be draining. If you can, avoid it.
Learn to Diversify
Many assets exist, don’t invest in a single scheme. Diversification is one of the best ways for you to reduce risk. There is always a need to have a backup plan. If one of your investments goes wrong, you will have something to rely on. Diversification is important for every investor. If you desire to explore many markets, then have a diversified portfolio. This will make you a well-rounded investor, and you will know many things.
Know the Differences Between Want and Need
Many things people spend money to acquire are unnecessary. This happens because they cannot differentiate their needs from wants. A need is something you need for survival, including food and shelter. However, when it comes to want, they are things that you can compromise. Want are your desires, and you want those items to live a more comfortable life. There are times you need to ignore some wants in order to save and invest. When you next want to buy something, ask yourself, “do I need this item for survival”?
Know Your Financial Situation
When you know your financial situation, it will go a long way to help you save more and lower your expenses. If you don’t know your financial standing, it will be difficult for you to set achievable goals. For instance, when you have knowledge of how much you earn, you can decide to create more streams of income for yourself. With many streams of income comes much money. Please, don’t depend on only a source of income for survival.
Learn New Skills
The world is constantly changing. There is a need to level up by learning a new skill. When you have an enriched skillset, you give your resume power. Many jobs are specific to skills. People usually say jobs are scarce, but that is not the case. Jobs are not scarce. What is needed is particular skills to get the job done properly. There are many institutions online where you can register and learn. Career growth requires you to learn new technology. During the period of the coronavirus pandemic, many people lost their jobs, and they were forced to look for other means of survival. The smart ones were fast to build a brand online.
Learn to Partner With People
This can also be referred to as a “strategic partnership”. For you to do this, you need to be a brand owner. Then, through a contract, you can go into a mutual relationship with another company. This business partnership allows for resource sharing, and it encourages collaboration. However, to be successful, the partnership must be with a company you are not competing with. This is because this type of partnership seeks to see both parties succeed.
Money is important. It gives you the wings to fly high. If you don’t have money, your goals will always have limitations. It will be challenging for you to aim higher. First, you have to be successful with money for you to create ways for other opportunities. If you don’t know how to acquire money, learn it. And when you finally have it, don’t spend it all. Look for ways to multiply it. There is nothing complicated about making money. If you are reading this and don’t know much about money, I want you to understand that you are not alone. So, feel free to keep developing yourself daily.
Don’t fail to apply these simple but golden rules to build your wealth. If you find this post helpful, don’t fail to like and share. Kindly check out also these related posts like “5 tips to use in training your brain to make more money“. Is there any rule of money that is missing from this content? Please, let us know in the section below.
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