[Featured] Best financial advice I had come through to become rich.
I was just going through the book, ‘Richest man in babylon’ and I felt so happy to read the book and the best financial advice i have ever come across.
- Set aside at least 10% of what you earn every month. This money is yours. You should not buy any liability with this money. This money must be invested in low risk – low return and the returns should also not be used to buy any liability. The returns should also be invested in low risk – low return instrument. As you see your money grow, you will automatically increase your saving from 10% to 20%.
- Set your mind to live with the remaining 90% of the income at any cost. Money with flow and stick with the most disciplined.
- If you wish to take a loan, repayment should not be more than 20% of your income.
- Any high risk investment should be made from this remaining 70% income only. Set aside a fund from this 70% income for a high risk investment, not more than 20% of your income. It is always better to find and invest in high risk income.
- Live a happy life with the remaining 50% of your income. Don’t try too hard to save the money and never become a miser, you live only once. Buy good cloths, travel distant places, eat good food, drive nice vehicles, help the poor, etc. Spending 50% of your income will make you happy and be made respectable by your wife and children. It will help you in having a strong mental strength to learn, grow and earn more.
- Buy a house at decent cost. House repayment should not be more than 20% of your income. If you have a housing loan of 20%, you can take a maximum loan of another 10% for any other purpose. Don’t make you house investment a liability. Research and invest in good property.
- Insure your future. Buy a term plan and also plan your retirement. Your family and children should never suffer once you leave to another world.
- Never stop learning. Never stop improving your skills. Always focus on increasing your income.
- Take proper advice for experts while adventuring into new fields.
- Money respects people those respect money. The lesser you care, the faster it would go away from you.
- Never gamble. Goddess of luck does not favor people those who gamble. Goddess of luck will knock your door for best investments and for opportunities in your work, make sure you never miss such lucky chances.
- Take proper securities against loans if you are lending to your friends or any one.
- Never lend your hard earned money with any poor relative. Don’t lend money to the poor or losers. They are poor for a reason. They will never be able to give your money back.
- Never earn against the rules or laws of a country. Pay proper taxes and earn the right way!
- Make you children financial sound and ensure they themselves earn, save and invest before they are fit to take over your assets.
Rules from the Richest man in Babylon in my own words.
My read book for everyone!
Link to buy the book in Amazon:
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