Finally…7 Golden Rules of Money

Money is the medium by which the earthly success is measured. Money makes possible the enjoyment of the best things this earth can afford.
If you want to know how moneyworks and how your money can work for you then this is the best post you can read. After reading this post you will understand the fundamentals of wealth creation.
The Seven Golden Rules of Money
1. Start the purse to fattening by paying yourself first
2. Control the expenditure
3. Make the money Multiply
4. Guard the money from loss
5. Invest the money in safe andprofitable investments
6. Insure a Future Income
7. Increase the ability to earn.
“Money is plentiful for those who understand the above written simple rules of money and apply them.
01. Start the Purse to fatteningby Paying Yourself First
The theme line of this chapter is that ” A part of all you earn is your to keep.” Try to calculate If you keep 1/10 of all you earn and invest it wisely, how much money would you have after 10 years?
If you want to become wealthy then here is a simple formula – Save at least 10% of your income. In the starting you can start by saving 1% or 2% of your income. Then you should gradually increase this savings amount till it reaches at least 10% of your monthly income.
02. Control the Expenditure
This chapter encourages you to make some discipline in your expenditure. If you are not able to save 10% of your monthly income, it means you are spending money on the things you actually don’t need. No matter how much or how less you earn, Everyone can live with 90% of his income and save 10% each month.
To save 10% of your monthly income, you should make a family budget and stick with it.
Each month when you get your pay-check, You must put aside 10% of your income for your savings account and the rest 90% you should use to spend for your basic needs.
You should know exactly how much money you are going to spend this month on different expenses such as apartment’s mortgage or rent, car fuel, electricity, phone, maintenance and other household expenses.
03. Make the Money Multiply
This is my favorite chapter – the investing part. According to this book you should make your money your servant rather than being a servant for money.
Money will work for you happily if you can invest your money wisely with the advice of professionals whose daily work is handling other people’s money.
You can learn investing by reading books and by investing small amounts of your money in different assets. To invest your money, there are many different options available for you such asStocks, Bonds, Mutual funds, Fix-deposits, Etf's Commodities (Gold, Silver & Oil) and Rental properties etc.
04. Guard the Money From Loss
You should not invest your money in the risky investments. At least in your initial investing years, you should invest your money in safe and secure investments where you get a steady return and your capital is secure.
Meanwhile you should gain knowledge about different investments where you can get better returns with lower risk.
You should start investing small amounts of money and then grow gradually as you learn.
If you put your money in the investments where the risk/return ratio is high and you don’t have enough knowledge, Most probably you would lose your money.
05. Invest the Money in safe Profitable Investment
It is the fifth rule of money that says that money will come happily and in increasing quantity to you if you invest yourmoney in the investments wherethe risk is very low and you have no fear of losing your money.
There are many safe investmentslike fixed-deposits and government bonds where you get lower return but your capital is secure.
06. Insure a Future Income
This money law says that money comes happily and in excessive amount to the person who invests his money to buy a homewhere his family can live for years.
After buying your home, you caninvest your savings to buy other rental apartments where you can pay the monthly mortgage installment with the rent you getfrom tenants and insure a futureincome once the mortgage is paid off.
07. Increase the Ability to Earn
In this section the author encourages you to improve your earning skills so that you can get paid more. Here are important skills, you should consider improving.
You should invest your time to improve your communication, leadership, sales, relationship, computer, technical, language and other skills related to your occupation.
Once you have developed some of these skills, you can ask for pay raise to your employer. If your employer refuses to raise your pay, someone other will happily pay you more for your skills and services.
Please post your comments about how you feel about the post and what you have gained so far.