Enrichment rules according to the 7 best financial books in the world

“Success is not magic or sacrament. Success is a natural consequence of consistent compliance with simple principles. ” – Jim Rohn.

The recommendations and enrichment rules that we give in this article are based on the strategies and principles given in the seven world financial best sellers:

• Thomas Stanley, “Your Neighbor Millionaire: The Incredible Secrets of American Wealth”

• Napoleon Hill, “Think and Grow Rich”

• Wallace Wattles, “The Science of Being Rich”

• George Klason, “The Richest Man of Babylon”

• Dave Ramsey, “Complete Monetization: A Proven Financial Fitness Plan

• Ramit Sethi “I will teach you to be rich”

• Robert Kiosaki, “Rich Dad, Poor Dad”

The so-called enrichment recipes are, in fact, very similar. The authors of the best books about finance and the rules of enrichment repeat them, but most people do not pay attention to it or do not know how to work with such information..

In a certain sense, we can say that “building up” wealth is not difficult. And even simple. Yes, in practice a lot of effort is needed, but the fundamental principles and financial values ​​are elementary.

1. Anyone can become rich because wealth is a way of thinking

“I am a rich man. And rich people don’t do that. ” – Robert Kiosaki.

Like many modern rich people, Robert Kiyosaki once was also “at zero”. In addition to this, his nylon wallet business left him with $ 1 million in debt..

But even in this position, he considered himself rich. So he said: “I am a rich man.” And his wife looked at him in surprise. Yes, Robert knew that he should raise his hands and probably give up the opportunity to collect wealth again. But he did not. Because “I am a rich man. And rich people don’t do that! ”.

Yes, to do anything, including an impressive state, is impossible if you do not have self-confidence. This has been said many, many times..

“A man is what he sees himself.” – James Allen.

Bruce Lee echoed with a slight amendment:

“What you think of yourself largely determines what you will become. Nobody ever gets more than he thinks he could get. ”.

Developing the thinking “I am rich” or “I am worthy of wealth, and I will have it” is a really difficult task. Especially for people who live in financial constraints. However, this very idea is the first prerequisite for success..

One of the main differences between rich and poor / middle class is their view of wealth. The rich see success as inevitable. In their opinion, it is already guaranteed.

Creating enormous wealth and enrichment rules begins with your thinking. If you think you can get rich, you are more likely to succeed than someone who does not initially believe in it..

2. If you follow traditional advice, you will most likely never become rich

“You have to keep up with the different drummers. To the beat of the rich. If the rhythm becomes “normal,” leave this dance floor immediately. The goal is not to be normal, because “normality” is ruining. ” – Dave Ramsey.

This principle is cited as an example in The Richest Man in Babylon, Monetary Reorganization, and The Millionaire Next Door. It seems that the most important financial books in the world echo each other: Do not listen to the majority.

Not because most people are not rich. Because they are broken, in debt and have bad financial habits. People overspending, do not save, do not invest and do not develop their financial horizons.

So why not stop listening to their advice?

Surely you have repeatedly heard general recommendations like these:

• Get a good job with a good salary.
• Diversify your portfolio.
• Be more modest.
• Do not take big financial risks.
• Your home is the biggest asset.
• Pay by credit card every month.

But the best books about money say that these tips are fiction. They are based on risk aversion. They are out of date. The rich, as a rule, run counter to traditional financial behavior. Warren Buffett agrees.

“A good investor is the opposite of what dominates the market”.

While everyone panics, the rich take advantage of this and ignore traditional advice. Their behavior is usually considered risky, impulsive or even dangerous. However, these are people who have a condition. In short, if you want to build tremendous wealth, do not listen to traditional tips.

“I will tell you how to become rich. Close the door. Be afraid when others are greedy. Be greedy when others are afraid. ” – Warren Buffett.

3. Make money work for you

“Saving without a mission is rubbish. Your money should work for you, not you – for them. ” – Dave Ramsey.

Most people work for money and don’t know how to make money work for them..

In the book “The Richest Man in Babylon”, each monetary unit is compared with a worker. A worker has the ability to magically produce more workers if he knows how to bring him to this. One worker can potentially turn into a dozen, a hundred, a thousand, etc. Enrichment rules cannot do without it.

The analogy with grains is also convenient. Every dollar is a seed from which several dollars can grow.

This means that every lunch in fast food or an extra cup of coffee is the distribution of 4-5 “workers” who will never earn a dime for you. And if you put money in a bank, then you chopped off their potential.

“Because of inflation, you actually lose money every day by holding it in your bank account.” – Ramit Networks.

This is the main principle of passive income and investment. Most people are not familiar with the joy of waking up in the morning and finding out that they have become several thousand dollars richer. Just while they were sleeping. And the one who passively receives $ 2,000 is more successful than the one who earns 10,000 actively, because he has time and energy for development.

4. Building wealth often looks simple and boring

The team of Thomas Stanley, the author of The Millionaire Next Door, interviewed hundreds of millionaires and found out that most of them live a modest and simple life by common standards..

“Many people who drive luxury cars and live in expensive homes are not really rich. And we found an even more amazing thing – most wealthy people don’t even live in prestigious areas. ”.

Here are some interesting trends found by the Stanley team:

• A typical American millionaire never spent more than $ 399 on a suit.

• More than 95% of millionaires hold 20% of their earnings in stocks.

• 85% of them are self-made rich people who did not work on typical jobs with schedules 5 to 9.

In general, for most wealthy people, enrichment is simple and even boring. No stereotypes about luxury homes, super-expensive cars and other luxury goods..

“A typical millionaire lives in a middle-class house, rides a 2-year-old or older car and buys jeans in Wal Mart,” jokes Dave Ramsey.

In fact, if you do not spend a lot of money on status, money simply accumulates more easily. Moreover, ongoing attempts to look rich lead to scarcity and ruin.

5. Wealth takes time to build. Patience is the key to success

“Wealth accumulates gradually, from small and insignificant amounts to huge investments, because a person learns in the process and becomes more capable.” – from the book “The Richest Man in Babylon”.

Often the richest people are those who started from the bottom and knew how to wait for the best conditions. Moreover, simple numbers show that most of the money comes to people over time..

Take the Warren Buffett example. Now his fortune is estimated at $ 77 billion. But at the age of 59, he owned only $ 3 billion. By the age of 60, in 12 months, he had earned more than in all previous years of his life..

In most cases, to become rich, you need to be patient. This is a long game in which the waiting strategy wins. Most people spend their resources on short-term tasks and therefore do not achieve the goal – this is something that is not included in the rules of enrichment.

This is often noticeable among successful exchange players. They do not panic, adhere to the plan, are in a position where everyone is convinced of their ruin, and then open a gold mine.

“Human nature requires getting here and now. The ability to put pleasure aside for a greater result is a real sign of maturity. ” – Dave Ramsey.

Patience leads to success due to the accumulation of not only money, but also experience, the ability to manage money. Without this, it is impossible to maintain a state. Ironically, many people who inherit a huge fortune have no idea how to manage it.

“It’s not about making money; the problem is money management. ” – writes Robert Kiyosaki.

Oddly enough, the quick and sudden state in the hands of an incapacitated person is likely to disappear just as quickly.

6. Great wealth means that you do not work, but own

“Ordinary people work very hard for little money, clinging to the illusion of work safety. They look forward to a two-week vacation every year and, possibly, a meager pension after 50-60 years of service. ” – Robert Kiosaki.

Imagine two people who want to devote themselves to coaching. The first creates a business from scratch, does everything on its own. Despite a good profit, his income is directly related to how much time he spends on work.

The second person creates a coaching team with other coaches. His clients turn to hired specialists, and he receives a share of the profit from each course of study. Firstly, it works when it wants, and secondly, it saves time and opportunity to expand the business..

Here is the difference between work and ownership.

If your earnings are limited to hours worked, you will always rest against a certain ceiling. Because you are one person. If you own an enterprise, all restrictions are removed.

Building wealth is almost always associated with owning several streams of income: enterprises, passive sources, side projects, stocks, royalties, etc..

For example, Tony Robbins owns more than 30 companies, but spends a minimum of time on them. He hires literate people to manage, and he himself – earns income. This is a typical behavior pattern for a rich person..

In many countries, by the way, ownership is more profitable to work from a tax point of view. Individual income tax can reach 50%, and on investments and real estate – about 20%. Passive income in some cases is not taxed at all.

7. Improving financial literacy is a powerful incentive to enrich

“Your level of success will rarely be higher than the level of personal development, because success is what the personality leads you to, and not vice versa.” – Ryan Holiday.

It is almost impossible to become rich without knowing how to do it. Financial literacy is one of the most powerful personal growth promoters..

Building wealth requires a solid and deep foundation of financial knowledge. Now there are a lot of possibilities for this, starting from the books mentioned in this article and ending with online courses.

“Rich people are rich because they are simply more literate about money handling than others.” – Rich Dead.

Most people lose money because they do not know how to behave in a difficult situation, handle taxes, cash flows and the budget. They do not even try to understand these issues, but rely on fate or chance. This illiteracy develops poverty.

Each of the books that we indicated at the beginning states that to create wealth, personal growth, learning, and financial education efforts are needed. It is difficult, especially for beginners, but it is necessary to ensure their well-being. The rules of enrichment – do not accept illiteracy.

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