How to be Rich ? 7 ways to think..

Let us look deeper, 7 simple ways to be rich according to this classical financial books, The Richest Man In Babylon, written by George S.Clason.

“Listen attentively to the knowledge that I will impart. Debate it with me. Discuss it among yourselves. Learn these lessons throughly, that ye may also plant in your own purse the seed of wealth. First much each of you start wisely to build fortune of his own. Then will thou be competent, and only then, to teach these truths to others.”

“I shall teach to you in simple ways how to fatten your purse. This is the step leading to the temple of wealth, and no man may climb who cannot plant his feet firmly upon the first step.”

“We shall now consider the first cure.”

How To Be Rich? The 1st Step

For each ten coins thou placest within thy purse take out for use but nine. Thy purse will start to fatten at once and its increasing weight will feel good in thy hand and bring satisfaction to thy soul.

Folks, think carefully, every month we pay other people first. But not ourselves. We pay to the government, we pay to utility companies, we pay telecommunication companies, we pay insurance agent, we pay unit trust agent, we pay our share broker agent, we pay clothes salesman, we pay him and we pay her.

How about ourselves?

Thus, make a habit to pay yourself first everytime you get your paycheck. Either you get $500 per month, or $10 000 per month, you shall minimum pay yourself at 10% of your total income.

So easy and simple. But you need a very strict discipline in doing in. You need discipline.

After you read this article, change your savings habit by paying yourself first, before you pay other people. Put in a very safe, very liquid and no cost savings account. Just do it, and within 3-5 years, you will know why this simple step is very important in building wealth.

How To Be Rich? The 2nd Step

Budget thy expenses that thou mayest have coins to pay for thy necessities, to pay for thy enjoyments and to gratify thy worthwhile desires without spending more than nine-tenths of thy earnings.

Now after you pay yourself 10% of your paycheck, you have another 90% to be spent. Wow. It is a lot of money dude! If your paychek is $2000 per month, now, you have another $1800 to be finished.

But, spend it accordingly. You have to categorize all you budget into 3 parts that have been discussed earlier in these topics, Who Took My Money & Who Took My Money (Part 2)

The first step and this second step are not investing yet. But these are the solid based of your financial position. A path to your financial freedom journey.

If you are not following these 2 simple steps to be rich, you are actually not ready yet to invest in any places at all and at any time.

Have you ever know any skycrapers such as Kuala Lumpur City Centre (KLCC) is built without a solid foundation?

How To Be Rich? The 3rd Step

To put each coin to laboring that it may reproduce its kind even as the flocks of the field and help bring to thee income, a stream of wealth that shall flow constantly into thy purse

By now you should have a bulk of money, if you pay yourself first and control your expenditure prudently for some times. In other words, save money first, invest later.

You should start to invest with some money that you can afford to lose because investing involves risk. How the risk can be eliminated or reduced, that is another topic. But as long it is called investment vehicle, remember, the risk is there.

Thus, beware with misleading statement from salesperson of any investment product which says that. “You will never lose your money”. “Your money is safe with them”. “You are guaranteed of return every month”. “No risk involve” and others.

Start small is very important especially if you are a beginner in investing. Don’t become a fool. Just think a way how to increase the your monthly cashflow. You can invest in a new part-time business, you can make a partnership business, you can invest in stock market, you can invest in real estate.

Choose any field that you like and comfortable with. If you can’t sleep at all at night because your money is in the stock market, do not invest in any product related with stocks. You will lose your money faster. Maybe business and real estate suits you better.

The most is important, you shall know what you’re doing. Because as Warren Buffet says,”Risk comes from not knowing what you’re doing.“