In an article published by CNBC, as of 2015, there was a record number of millionaires living in the United States; approximately 10.4 million people, with 300,000 millionaires added from the prior year. Becoming a millionaire is possible as ever in our day and age. To increase your chance of becoming a millionaire, there are seven rules that you can implement to do so. In the book, The Richest Man in Babylon, written by George S. Clason, those rules are referred to as the “Seven Cures for a Lean Purse.” The book was written originally in 1926, however, the principles that are taught in this great literary work are still applicable today.
Start thy purse to fattening
The first rule to acquiring wealth is an obvious one, which is to do like 21 Savage and start growing your bank account! The first thing you need to do to increase your income, is to ensure that you have money coming in, typically from a job, although there are many other ways to earn as well (see link below). The great thing about this rule is that you can have a job that pays a little or pays a lot, either way, you can still grow your bank account. The secret to this is to put aside 10% of your earnings. Take a quick moment to see what you would have at the end of 12 months if you were to save 10% of your income every month. If you can do this consistently, I’m positive that you could find an investment for those funds to grow your bank account even more!
Control thy expenditures
I believe this is one of the most important rules to acquiring wealth. If you are unable to master this rule, your chances of achieving wealth will decrease a great deal. Regarding this rule, the book states that “Our necessary expenses will always grow equal to our incomes unless we protest the contrary.” While I was still enjoying the fun of corporate America, I can honestly say that each time I increased my income, my expenses also appeared to increase as well. To overcome this challenge, you have to be disciplined and sacrifice some pleasures now, so that you can enjoy them later. If your expenses exceed one-ninth of your salary, (after one-tenth set aside), then something should be eliminated. If you chose not eliminate anything, then you need to refer back to rule number one, and is merely to make more money. You may have to get creative, but I’m positive that it can be done.
Make thy gold multiply
As you continue to set aside a portion of your income and start to master the previous rule, you must take your money, invest it and have it earn more money on your behalf. If you’re unsure what to invest your money in, seek someone who is knowledgeable in investing money (financial advisor, wealth planner, accredited investor). In our society today, information is at our fingertips. There is plenty of research that you could do on your own about various investment opportunities. In order to acquire wealth, your money needs to work for you actively. Be sure not to forget about what Albert Einstein called the 8th wonder of the world, Compound Interest.
Guard thy treasures away from loss!
I believe one of the fears of millionaires, is that at any moment, they could lose their fortune that they worked so hard to get. I prefer not live in fear. Once a person has acquired wealth, they should take proper measures to protect their assets. Even before one reaches that status, it is crucial to protect the funds that you currently have, even if it is a small amount. If you are unable to secure a small amount of money, you will most likely be unable to protect a more significant amount. The first way to avoid losses is to abandon extremely risky investments where you could potentially lose your entire principal. The 2nd way is to be practical to whom you lend your money to. The same way a bank reviews an individual before lending money is the same practice that you should apply. Lastly, it would be wise to seek professional help, in the form of accountants, lawyers, and financial advisers.
Make of thy dwelling a profitable investment
This is a rule that many people may be familiar with. In nearly all cases (not all), it is better to own, than to rent. In 5 years of my life, I paid nearly $50,000 in rent for my apartment, not to mention the expenses associated with renting. Owning your own home is very important in building a foundation for accumulating wealth. And unlike vehicles, which depreciate, in most cases, and certainly, over time, the value of a house will increase.
Ensure a future income
You aren’t only ensuring future income for yourself, but for your family, especially if God calls you home. There are several ways to secure income for a later date. One way is to purchase a life insurance policy for your family if you decrease them. You certainly would want your family to be taken care of if you were to pass away. You can also invest money in vehicles that are designed to pay you income at a later date, such as annuities. Investments such as real estate, a business or franchise, can also provide income in the future, as well as the present. This should be a priority for your family before you get older.
Increase thy ability to earn
I like to say that the book left the best rule for last! I say that because today in America, in the era of technology, social media, and startup companies becoming a common thing, there are many different ways to increase your ability to earn more money. The book states “The more wisdom we know, the more we may earn.” I have heard successful people say that the more you learn, the more you earn. I definitively concur. If you are working to reach your personal best, your income will surely follow suit as you strive to be great. I also have to believe, that working extremely hard will increase your revenue as well.
The athletes who are most successful, aren’t always the most talented, but they are typically the ones who work harder than most of the others. So get off your ass, start reading about money and success, start working out and eating healthy, and increase your ability to earn more money and create wealth for yourself and your family! If you can believe it, you can achieve it!
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