Influential books and mentors on financial freedom repeat and rephrase the same principles of wealth over and over because they know what works. George Clason’s “The Richest Man in Babylon” is a classic because if deals with basic and unchanging human emotions and desires. It is based on the concept that every wealthy person acquired their money from other people, and to become deserving of that money, provided a service that other people have depended on.

Perhaps the most important concept of the book is to “Pay Thyself First.” This idea is repeated by Robert Kiyosaki in “Rich Dad, Poor Dad” and most other famous financial books. It’s simple- before you pay your mortgage, your car payment, your credit card payment- or anything else, save no less than 10%. Many Americans are under the false impression that all they need is a bigger pay check to make themselves more financially secure. The problem is that inevitably with their rising paycheck comes rising expenses with the same amount set aside for the future- nothing or less. Ideally, you should also give 10% to charity and devote 10% to investments- living off 70% of your income. This might seem difficult at first but if you live knowing that you can spend no more than this 70% you will be shocked at how quickly you adapt.

It’s not enough to just make a lot of money through corporate “allowances.” What if you lost your job tomorrow? How long could you maintain your current lifestyle before your savings ran out? You must actively invest your money wisely to create passive streams of income that will continue to earn you money whether you’re working, sleeping, or eating. If your money is just sitting in a bank account, you can be sure that it’s losing money due to inflation. You must invest in something recession proof, like real estate. People will always need a place to live no matter what. In addition to this, real estate investing makes you money through cash flow, equity capture, appreciation, equity build up, and tax advantage.

Another vital principle of wealth is seeking the advice of mentors. These are not just people you respect and love, but people who have actually reached the level of success you desire. Sometimes you can’t find one person who has gotten out of life everything you want, in this case you will need multiple mentors.

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