7 Financial Commandments That Will Lead You to Millionairedom
Updated on November 19, 20186 mins read
The Bible supplied the world of religion with the 10 Commandments. According to the story in the Exodus, God inscribed them on two stone tablets, and then gave them to Moses. Ever since, this legendary doctrine has found its way into the Bible, individual interpretations, and of course, pop culture.
It’s also found its way into the world of finance!
Here, we supply YOU with 7 Financial Commandments to live by. We won’t guarantee you a seat in heaven, but we can guarantee your finances will look pretty great 🙂 Before you know it, you might just make your first million! We know the secret(s). Here’s what thou shalt do to reach that milestone!
1. Thou Shalt Know Thy Finances (really well)!
Here’s a tip to remember forever – Your mind is your biggest asset. Fill it with all the know-how you can get your hands on! Acquaint yourself with financial lingo. Talk about the economy and viable businesses with people with people who have experience in these areas.
Sadly, the average education system never really teaches you how you should handle your money.
So, educate yourself on how money is made, held, invested and preserved. Learn how money flows from one place to another and keep an eye on the economy!
Millionaires understand money pretty well, and that’s why they keep making more of it.
Plan Of Action:
Read those books with clichéd titles. You may giggle at the covers, but their pompous promises will give you priceless insights. A certain book about a pivotal piece of cheese comes to mind. Here’s a useful list:
1. Who Moved My Cheese? – Dr. Spencer Johnson
2. I Can Make You Rich – Paul McKenna
3. Think And Grow Rich – Napoleon Hill
4. Becoming Rich – Mark Tier
5. The Richest Man in Babylon – George Clason 6. Rich Dad, Poor Dad – Robert Kiyosaki
2. Thou Shalt Have Passive Sources Of Income!
The affluent often have multiple streams of income. While one large business may be responsible for the bulk of their riches, passive sources of income are almost always present.
That’s passive income. It’s an income received on a regular basis, with not much effort required to sustain it. There are a lot of ways to generate passive income! You could rent out properties you own, earn interest from a savings account in a bank, or even earn the royalty from a book you’ve written. Several finance blogs offer amazing ideas for passive incomes!
Plan of Action:
Pat Flynn is one of the most famous people who got passive income sources to work for him. While passive income is never 100% passive, it doesn’t take as much effort to develop it as a good source of income. You can do a thousand things to generate it. Do you write well? Start a blog, and earn from advertisements! Are you knowledgeable about a certain field? Become a part-time consultant! You can charge a lot more for your services than you normally would. Think hard… or just read this already: http://www.greatpassiveincomeideas.com/
3. Thou Shalt Value Thy Education!
We get it. You have responsibilities. Your to-do list is eternally clogged, and you never have the time to get it all done. That’s the life of most people, but most people haven’t amassed a fortune! Chances are, you compromised on your education to kickstart your earnings. This may have severely affected your chances of having a higher starting salary.
Remember, your mind is still your greatest asset.
Plan Of Action:
We find that the wealthy never stop learning, despite their businesses.
A famous entrepreneur from the USA, Noah Kagan, has often said that he ALWAYS makes time to read, no matter how busy he may be. He also sets aside time each week to just learn While he may have no need to add to his qualifications, challenging yourself on a cerebral level may make all the difference to your life.
When’s the last time you just learned something? Blow away the excuses and to listen to this interview by Noah Kagan
4. Thou Shalt Take Well Thought-Out Risks!
Don’t be afraid to be the first one to do something new. Got a weird business idea? Develop it. Look for potential customers. Determine who would want the service you can offer. Don’t shy away from something because it sounds too unusual.
There are countless “odd” businesses out there, and oddly enough, they have a lot of customers, too. Did you know you could Rent A Chicken? We sure didn’t! We’re not talking only about business ideas. Take risks when it comes to investments, too. It’s okay to be speculative once in a while! As long as your choice is backed by reason and proof, take the leap!
Plan Of Action:
Do what the brilliant writer and blogger James Altucher does. Every time you have a creative idea, write it down. No matter how old you are, it’s never too late to start a business that might stem out of these ideas.
He offers one more priceless tip: Only build something you’d want to use yourself!
5. Thou Shalt Live UNDER Thy Means!
What are you doing with leftover money each month?
We know, your boss isn’t particularly generous. Your company hasn’t taken off yet. Or whatever other reasons you may have. But let’s be truthful to ourselves – You spend too much. It doesn’t matter how much you make.
Whether you make 2,000 or 2,00,000 per month, you’ll still be broke and debt-ridden.
When the millionaires weren’t millionaires, they consciously decided to live on less than they make. Instead of upgrading their lifestyles every time they earned a LITTLE bit more money, they chose to put the extra pennies where they KNEW it would grow.
I’m talking about investments. Stocks, real estate, or THEIR BUSINESSES.
Plan of Action:
Pull out your bank account statements over the past 2-3 months. Try to pull out the unnecessary expensive dinners, the extravagant birthday gifts, and the cost of appliances you don’t use. Add them up. You’ll know what we mean.
Organise your finances.
Budget, budget, budget. Several apps can help you do so. But it’s best if you do this yourself. Make it a point to be 100% aware of where you spend your money.
6. Thou Shalt Collect Assets!
A regular job is pretty unlikely to ever make you rich. Pennies saved here and there won’t make much of a difference, either!
What do you do, then? You start collecting assets.
An asset is anything of value that can be sold to make money. The more you have, the richer you get. Millionaires make it a point to own assets. Simple.
Your car or your fancy gadgets don’t always count as assets.
An asset could be a successful business, a good stock portfolio, or a good piece of real estate. If you don’t own any of these, never fear…
Plan Of Action:
Make an honest and elaborate list of all the assets in your life. Make sure you also write their current value. After this, make an even more elaborate plan to acquire more assets. Don’t buy liabilities. Live below your means. The money you save can be invested in purchasing assets intelligently.
7. Thou Shalt Build Routines That Will ENSURE Progress!
This may sound ridiculous, but make a time-table. Use the commandments in this article as pointers. You could dedicate an hour every night to reading up on things. You could dedicate half an hour every day to keep a check on the values of your assets. You could also decide to put in an hour per day on your passive income stream – the blog, the online craft store, whatever you please!
If you’re a little more determined… You could decide to go to Coursera and do several online courses that could make you more skilled at your trade! As an end result, you might end up as someone who is a lot more qualified, organized and motivated!
Plan of Action:
You know what to do. Grab a pen and paper (or your smartphone) and make a flexible schedule. Put aside a certain number of hours per day/week to work on each of your goals. Want to make money in the stock market? Make sure you read up on market trends 2-3 times a week.
Want to own an ice-cream truck? Start thinking of potential USPs for your brand.
Lastly, ensure that you allow yourself enough time to relax every day!
Stick with this routine faithfully, and you will definitely see results J
From where you stand, you might feel like amassing millions is a distant dream. Shed your doubts, renew your faith and embark on your journey towards affluence. Good luck!
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