12 Money Rules No One Taught You In School

No financial degrees, No certifications, No wealth inheritance, No lottery, No high paying jobs, No business - Nothing of this sort is going to help you get seriously wealthy. Various studies have proven time and again that all wealth, even if created by any such means, is mostly lost pretty quickly - unless of course, you happen to learn, understand, appreciate, absorb and implement the rules of money...

What is going to help you get super-rich is your stickiness to the 12 age-old money management rules. These rules or principles seem simple. Their simplicity happens to be their biggest strength. The simpler something is, the easier it is to replicate. Your biggest challenge, when creating and managing wealth, would be to keep your thinking as simple as these principles, and continuing to stick with them - in periods of crests and troughs.

So, Here you go with the 12 Golden principles….

# 1: Awesome Power of Compounding

I know you know what Compounding is. Perhaps, you know the formula as well. The only that you might not know is how truly powerful it can get. Delayed Gratification in compounding is what keeps people away from it. But it pays you magically. Understand and invest in this awesome power of Compounding 

[Read more: How powerful can compound interest be?]

# 2: Pay Yourself First

Pay yourself before you pay your utility provider, your grocery shopkeeper, or anyone else. Make yourself rich before you go about the selfless act of making all these rich companies even richer. Save before you start spending. It makes all the difference.

# 3: Focus on the 4th Lever

Understand the four levers of wealth creation and invest most of your time, energy, and money on the 4th lever. Increasing your income, Reducing your expenses, or reducing your tax outgo is not going to help you much. Focusing on improving your Return On Investments (ROI) is the key to massive wealth generation.

[Read more: Four levers that create wealth for you]

# 4: Invest for Cash Flow

Invest for regular cash flow and passive income rather than immediate gains. This has a delayed gratification but pays you handsomely in the long run.

# 5: Get the Right Attitude

Get the Right Attitude towards money. Love, Respect, and Care is what you need for your money for it to reciprocate it back to you.

# 6: Sharpen Your Financial Saw

Sharpen your Financial Saw regularly. Read great blogs [Elevate Your Life], study online courses, and powerful inspirational books like From the Rat Race to Financial Freedom

# 7: Start Early 

Nothing beats this. Nothing can make up for the lost time. Starting Early works hand in hand with the power of Compounding to create magic in your financial life. 

# 8: Get Started to build a Corpus

Having said that, if you are already late, do not look back. Get started now. Looking back does only one thing for you - slowing you down.

# 9: Avoid Credit Cards

Avoid Credit Cards until you are almost done with your Financial Freedom. Credit Cards have their merits but only if you are a mature financial investor. Till then, stick to Debit Cards and Wallets.

# 10: Strive for Financial Freedom

Strive for Financial Freedom as a critical milestone in the journey of wealth creation. This is one state in your life that allows you to make your passion your profession.

[Read more: Your passion Vs Your profession]

And when your passion becomes your profession, there is nothing stopping you. Financial Freedom allows you to live a brand new life. 

[Read more: Two different lives]

# 11: Keep your Portfolio Balanced

This is where you need to spend some time. This is working on the 4th lever. At all times, irrespective of the market situation, ensure that your portfolio is balanced - insulating yourself from the noise around you.

# 12: Try out new investment opportunities

Time keeps changing. From time-tested Fixed Deposits to PPF to ELSS to BitCoins - the world is continuously evolving. Expand your horizon by understanding and trying out all 7 Streams of Wealth Creation by most Millionaires. You may not know what is going to change your life. You may have no clue what clicks for you. Try them out. Take a little bit of risk. Failure is just fine.

[Read more: 7 Income Streams of most millionaires]

Follow these 12 time tested principles and wealth is bound to be your slave.

Cheers

Manoj Arora
Official Website