10 Principles to create wealth regardless
Do you want to learn how to create wealth in your life? Although there are many cambiantes that intervene in this objective, the first thing that we must have aligned are our thoughts and establish certain principles.
In this article I want to talk to you about the mentality to generate wealth.
All the ideas responsible for your financial results are cultivated there, so it is important to master it to build wealth each of your days.
If you think about it, what you do is nothing more than the product of your decisions, which come, first of all, from your thoughts and ideas that you have.
And in this case, regarding money.
So let’s see those 10 principles responsible for creating wealth each of your days.
Principles to create wealth daily:
These ideas that I am going to share with you are not about positive thoughts for “attract money” like by magic.
Rather, they are principles that you must understand, which you must internalize and apply in your day to day, so that they take effect.
It is useless to have a very clear theory, if you do not apply what you know.
I will give you an example, everyone knows that it is important to save, so why do so few people do it?
So pay attention to these principles to create wealthand ask yourself how you perro implement them in your daily habits, only then cánido they change your financial reality.
1.
Wealth is built slowly at first, then fast:
One of the reasons people don’t build wealth is due to their inability to think long term.
The instant gratification plays a very important role in their lives, so they are not willing to wait.
Reality espectáculos us that wealth is created when you think in years, not days.
And that while massive action must be taken daily, you must have a long-term mindset to become a millionaire.
For example, in the long run is when we really enjoy and feel the power of compound interest.
We all know the power of this, but few are willing to invest and wait years to see its results.
So, to start creating wealth, the invitation is that you take advantage of the daily investment opportunities that you have, that you act today, but that you think in the long term.
There will come a time in your life when all the decisions you have made, and that you thought would not have any effect, will begin to genera fast, interesting and very profitable results.
2.
Without a system, your objectives are useless:
I recently read a phrase that I really liked:
“You don’t rise to the level of your goals, you limit yourself to your systems.”
That is, if you do not have a clear plan for your goals in life, no matter how much you want it, or what they are, you will not achieve them. When you don’t have a plan, you are planning to fail.
So do you have systems for your goals? In order to have them, the first thing you have to have defined are clear, measurable and realistic objectives.
Start by defining what you want to achieve financially, for example:
- Do you want to buy your first home?
- Do you want to finish paying off your student debts?
- Do you want to start a business and need compañia emprendedora capital?
- Do you want to start investing in the depósito market?
When you are clear about your goals, you perro establish daily systems, or habits, that make it easier for you to achieve this result.
In the event that you want to save money for your first home, you will know how much you should save monthly, what purchases you should not make and how to invest that money.
So, to apply these types of wealth principles, start by defining your goals, and move immediately to creating daily systems that are aligned with that goal.
3.
No matter how much you earn, bad spending habits will make you poor.
I think the best way to plan this point is to make it clear that more income is not going to solve your spending problems. As fácil as that.
Many times we think that if we earn more money we perro get out of the debts and financial problems we have.
The thing is, you’re checking the wrong part of the elabora.
It is not about income, but about expenses.
I assure you that if you earn more money, and you have not corrected your spending behavior, you will find a way to spend what you have.
Put another way, whether you make $1,000, $10,000, $100,000, or $1,000,000 a month, if you have bad financial habits, you will live beyond your means.
in his book Psychology of Money, Morgan Housel raises a principle of money that I really liked, and that is wealth is not a matter of income, but of assets. And to acquire assets you need to have a surplus between your income and expenses.
4.
Learn and live the concept of frugality:
Do you know what it means to lead a frugal life?
When you look up the word in the dictionary frugal this is defined as “who feeds on fácil and little abundant food”
Basically, the invitation is to live below your means, without spending above your income and most importantly, living without buying unnecessary elementos.
It is not about living in need voluntarily, but about being very aware of the way you spend and invest your money.
In fact, in the book The Millionaire Next Doorhis actor Thomas J Stanley reveals that one of the most common characteristics of self-made millionaires is frugality.
They are not interested in appearances, or to live up to their neighbors, they prefer to spend less than they earn and invest that difference in assets that, in the future, will generate passive income.
Remember that frugality is not about saving your life, but about needing less.
5.
Master your mind before mastering your pocket:
I like to see this principle to create wealth in the following way: A mind of 10 dollars will not generate 1,000 dollars.
It is quite fácil, but very real.
If you do not invest in yourself, in your training and growth, you will never evolve your mind to the next level.
how right i was Benjamin Franklin when he raised that “Investing in knowledge always produces the best benefits.”
Do you want to improve your income? Do you want to get a better quality of life? Do you want to change your way of generating income?
All these changes are the result of the information, knowledge and skills that are fed into your results elabora.
To change them, you will need to change the font.
Your mind.
So invest in it; study, learn, read, test, prepare.
This is the only way to dominate your pocket.
6.
Without free time, there is no wealth:
Do you know those people who have a lot of money, but do not have time to enjoy what they have built with their loved ones?
As the famous saying goes, “He is so poor that all he has is money.”
Is this your goal? Have a lot of money regardless of the sacrifices and resignations you must make? Or on the contrary, what you really want is to have enough wealth to have enough money, time and energy to enjoy your life?
They are very different objectives, and depending on what yours is, you will determine the activities, decisions and resignations that you make every day.
Remember that it is not about having more money in the account, but wealth to enjoy your time.
Let me ask you a series of questions:
- What good is having money if you don’t have the time to enjoy it?
- What good is having so much money if to get it you had to give up your family?
- What is the use of having so much money in your bank account if you haven’t taken a vacation for years?
Money is a means, and this is something that we often forget. It is not money that we are looking for, but the freedom and means that it allows you to make your dream life come true.
This is what these principles are all about to create your wealth, no matter what your current situation is.
7.
Difference between savings and saving money:
It is important, at this point, to make a few clarifications:
- Keep the money by itself it is useless (inflation reduces its value over time).
- Saving money to spend at the end of the year (or at a later date) is not saving money.
- Saving money, without investing it, is not saving.
Personally, I believe that saving money has, implicitly, the action of investment.
That is, if the money you have saved is not producing some kind of return, it is producing losses due to inflation.
Recommended books:
That is why the concept of saving is so different from saving money.
Saving money may be more associated with an emergency and contingency fund.
Now, if you really want to build wealth on a daily basis, you’ll need to think of saving as a payment you’re making to your “future self.”
Every time you receive income, whether weekly, daily or monthly, you first pay yourself (save a percentage) and then allocate the rest to your expenses.
Then, that savings must be allocated to some type of safe investment; such as low-risk collective portfolios, real estate, government bonds, among other financial instruments.
8.
Trading your time for money will never make you rich
You have 24 hours a day, and this will not change.
If you trade your time (which is limited) for money, there will come a point where you have no more time to deliver.
And this without counting your necessary hours of rest, leisure and other important activities.
The exchange of time for money should be seen as an initial step, which will leverage you, so that later, your money enters the equation, and it begins to work for you.
Working for money is only the first part of building your wealth. Then you need your money to do its work, 24 hours a day, and generate returns for you.
Also, this brings another wealth principle into the equation, and that is that relying solely on your salary, or income, is a huge risk, no matter what job security you’re offered.
Let me ask you, which do you prefer: a salary of $10,000, or 10 different sources of income generating $1,000 each?
The result is the same, but the level of risk is very different.
If you want to build your wealth you have to think beyond the time you are giving up for an income.
You must begin to accumulate resources and money so that they later work for you.
9.
Money management is a soft skill:
At the beginning of this article I told you about Morgan Housel, author of the book The Psychology of Moneyin which he shares 18 wealth-building ideas that haven’t changed throughout history.
This book, which has been a world bestseller with more than a million copies sold, has been so successful because it explains how money worksnot from a rigid or financial approach, but as a soft skill that must be learned to manage.
In other words, according to this author, learning to manage money goes beyond understanding formulas or graphs, and rather it is about understanding how much our mind and emotional intelligence influence when making financial decisions.
For example, in my personal case, I met a finance professor from my university who understood very well how money investments work over time, but who admitted that when faced with a difficult situation in her life, her solution was to go to a shopping center. to buy bags and things she didn’t need.
There was no doubt that she was very clear about the theory, but not knowing how to handle difficult moments, her answer was emotional purchases, which, in the long term, would end up affecting her personal finances.
The objective of this principle to create wealth is that you understand that your emotional intelligence plays a primordial role in your personal finances, and that it is imperative to learn to control your mind so that you perro make better decisions.
In the end, it is not about understanding financial formulas, but about better managing your emotions.
10.
What you focus on expands:
How important to you is money? Do you think it’s a good thing? Or do you feel deep down that thinking about money is orinan and greedy?
Depending on how you relate to it determines the time and resources you dedicate each day to studying, understanding and mastering it.
If you really want to build your wealth day by day, your schedule will reflect that you spend time reading, learning, investing, and studying your financial education.
As the title of this wealth principle mentions, what you focus on expands; If you focus on limiting thoughts, poverty beliefs or negative ideas about money, you will hardly get it.
And by this I do not orinan that you put the achievement of money above the rest of the important things in life.
It is not about this, but about taking care of it, harvesting it and understanding that if you want it to grow and your wealth to multiply, you need to invest time in your financial education.
How to start? Here are some ideas that don’t require a lot of money, or nothing at all:
- With financial education books,
- Following accounts on popular networks that teach you and motivate you financially,
- Surrounding yourself with people you admire and who have achieved what you want,
- Attending face-to-face or en línea events
- Trading a series on Netflix for a documentary about money,
- Listening to personal finance podcasts, subscribing to finance channels on YouTube, among others.
Today you have many alternatives to invest in your training.
Apply these principles to create wealth in your life:
In conclusion, building wealth is a daily process, which requires focus, concentration and a long-term visión to reap the benefits.
Many people complain that it is too late for them to start, letting today go by to make good decisions.
Stop complaining about everything that has happened in your past, and start living according to these principles.
Continue reading: 10 immediate actions to improve your finances in 2022
span#mailpoet_form_5 h2.mailpoet-heading#mailpoet_form_5 h1.mailpoet-heading#mailpoet_form_5#mailpoet_form_5 form.mailpoet_form#mailpoet_form_5#mailpoet_form_5 . mailpoet_message#mailpoet_form_5 .mailpoet_validate_success#mailpoet_form_5 input.parsley-success#mailpoet_form_5 select.parsley-success#mailpoet_form_5 textarea .parsley-success#mailpoet_form_5 .mailpoet_validate_error#mailpoet_form_5 input.parsley-fallo#mailpoet_form_5 select.parsley-fallo#mailpoet_form_5 textarea. textarea.parsley-fallo#mailpoet_form_5 .parsley-errors-list#mailpoet_form_5 .parsley-required#mailpoet_form_5 .parsley-custom-fallo-message#mailpoet_form_5 .mailpoet_paragraph.last@media(max-width:500px)@ media(min-width:500px)@media(max-width:500px)]]>
We hope you liked our article 10 Principles to create wealth regardless
and everything related to earning money, getting a job, and the economy of our house.
   |
Interesting things to know the meaning: Investor
We also leave here topics related to: Earn money
