Have you ever wondered why some people seem to effortlessly accumulate wealth while others struggle to make ends meet? It's not just about how much money you earn; it's about understanding and respecting the rules of money.

For those of you who haven’t watched my latest videos, I’ll break them down here for you.

Money vs. Wisdom

Money can come and go, but wisdom, once acquired, becomes an invaluable asset.

Imagine being offered a bag of money or the wisdom to understand the rules of money. Which would you choose? Many would opt for the bag of money, but here's the truth: without wisdom, that money is likely to vanish quickly. Money favors those who understand its rules and respect them.

Money is a game, and to win, you must learn the rules and how to play strategically. Those who understand the rules of this financial game hold the keys to wealth, while those who don't remain at a disadvantage. When you grasp these rules, you can tilt the game in your favor.

The Power of Doubling

One fundamental principle is the Rule of 72

It's a simple yet potent concept: divide 72 by the percentage you consistently earn on your money, and you'll find out how many years it takes for your money to double without additional contributions. Starting early multiplies the effects of this rule.

For instance, if you have $1,000 in your bank account and it's growing at a consistent rate, you're only ten doubles away from having $1,000,000. The earlier you start, the more time your money has to work its magic.

Rule 1: Save and Compound

Now, let's delve into the first law: Money comes to those who consistently save at least 10% of their earnings. Saving diligently creates a financial foundation for the future. It ensures a steady income stream for retirement, providing security for you and your family.
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If you're just starting, aim for the 10% savings rule. However, given the high costs of modern life, it's often wise to save closer to 15% or even 20% of your income. The 50-30-20 rule can be a helpful guideline, directing 20% of your earnings towards savings and investments.

This rule splits your income into three categories: essentials (50%), lifestyle (30%), and savings (20%). I wrote to you about this rule last week. If you missed it, read it here.

Rule 2: Passive Income

The second law is all about getting your money to work for you. Develop streams of passive income, the Holy Grail of financial independence. Passive income is money earned with little or no ongoing effort on your part.

Investing is a classic method. Look for dividend-paying stocks or create digital products like online courses that can generate income without constant attention. Real estate can also be a source of passive income. By renting out property, you'll have money flowing in without the need for daily management.

Additionally, the world of online business has opened up unprecedented opportunities. Dropshipping and e-commerce allow you to profit without the hassle of physical inventory. The key is finding the right balance between effort and income.

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Rule 3: Respect Your Money

The third law is about respecting your money. Money has a unique place in our lives, and how we treat it reflects our self-worth. By respecting money, we become more responsible with it, making wise financial choices.

Respect isn't about worshiping money but understanding its value. It means using money wisely, saving, investing, and spending it thoughtfully. When we respect money, it reciprocates, paving the way for financial success.
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This is just the beginning. There are two more laws of money, each equally crucial, which I'll reveal in upcoming newsletters.

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To your extraordinary success,

John

Educator| Father| Financial Strategist| Realtor| Mortgage Broker| Retirement Planning Specialist

If You Fail to Plan, Then Plan to Fail.

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