You may not want to hear this but rich people know more about money than the
average person and this knowledge is why they are able to amass significant
wealth while their less financially fortunate counterparts continue to
struggle to make ends meet each and every month the good news is that
whether you are dead broke or living in the middle class if you are able to
acquire the particular knowledge that only the rich possess then you too can
climb the economic ranks and build your own degree of wealth and luckily boss in
this video i will share with you three money rules only rich people know money
rule number one you must commit to your money one fundamental difference between
the rich and the poor which ultimately leads to the wealth and equity we see in
today's world is a relationship with money initially ask yourself the very
general question what is money some people think that any money they have is
simply a fortunate possession to use as they please as they see it it is no one
else's business how they choose to spend it others incredibly always think about
what others would think of any expenditure they make as if they have no
right to choose for themselves how they would use their own money they can't
even buy a shirt or an appliance without seeking out someone else's approval some
people spend money on anything they want at any time with no regard for
essentials sadly these are the types of people who end up getting their phone
disconnected or their home foreclosed whether you have ever thought of it this
way or not in most cases you have literally exchanged a portion of your
life for the money you have and sooner or later you will come to realize how
little time you have on this earth others only spend on necessities and
have no personal satisfaction from buying something they really want some
people spend all their money on themselves in a very selfish manner
others feel guilty spending on themselves and sacrifice themselves
completely for others this often includes the expenditure of their time
as well as money but while most people experience all these attitudes without
going to extremes very few people have ever discovered an appropriate balance
perhaps more important even those who may be balanced in the way they actually
use their money often feel a little sense of achievement or satisfaction as
a result but why is this partly because they do not have a basic view about what
money's purpose is in their life and partly because they have gotten in the
habit of buying on credit so much that they rarely buy with money they feel
they have earned and have a right to spend success with money begins when we
learn to respect money when we have respect for money we are able to take
seriously our need to be responsible with money when we are responsible with
money we escape money guilt and can feel confident in our financial decisions
think about this assuming you acquire your money honestly and honorably you
get your money by working for it or from a parent or other person who did time is
limited therefore any money you have represents a portion of someone's life
usually your own whether you have ever thought of it this way or not in most
cases you have literally exchanged a portion of your life for the money you
have and sooner or later you will realize how little time you have on this
earth so every time you buy something whether a physical thing or a service
you are giving up a part of your very short life for that purchase money rule
number two you must manage your money one reality that many rich people come
to realize early in their lives is that no one cares about their success as much
as they do sure your parents and friends may support you going to school or
starting a business but ultimately your own success is not in their hands but
instead is in your own and this same principle relates to the management of
your money if you don't manage your money properly no one is going to step
in and save you from your financial situation for this reason the rich are
diligent in employing sound financial practices in particular many rich people
use a four-step approach when managing their money that allows them to assert
financial control and ensure that their money grows over time this four-step
approach contains the following management skills management skill
number one setting money goals for the average person the only money goal they
have is to collect their paycheck every two weeks but the rich know that setting
money goals or any goal for that matter is critical to long-term success in fact
the rich set numerous money goals such as a savings goal an income goal and
sometimes even an investing goal sadly when you talk to many less financially
well-off individuals they don't often seem to be as bought into the idea of
goal setting as their wealthier counterparts if this sounds like you
then think about your life over the past few years what happened to you once you
started thinking about getting a new car a new house or maybe even a new job once
even a general goal begins to form in your mind you begin moving in that
direction and once you begin gathering specific information and making serious
plans there is little to stop you that's the way goals work and once you begin to
formulate serious financial goals it will be the same management skill number
two planning after you've identified your money goals you must create a plan
to achieve these targets while the average person's planning process if
they have one will involve listing out vague steps the rich know that the value
of a good plan is in the details this is why the rich create their plans with the
exact tasks that need to be accomplished the resources required to accomplish
them which of course includes time each task will take then the rich break up
these tasks into more manageable activities so that they can build more
momentum as they cross off activities from their plan finally the rich set
deadlines to avoid procrastination and give them an added sense of urgency
which only further adds to their motivation management skill number three
staying organized the rich know a secret about organization that poor people
don't ask a poor person how they feel about organizing their finances and they
will tell you that it's a waste of time but the rich know that when done
properly good organization really doesn't take time it actually
makes time this is especially true when it comes to financial management if you
have to hunt here and there to find your checkbook or bank statements if you
can't find statements for bills that may or may not be due or if you have to sort
through a big stack of papers to find a name or address you can lose a lot of
time if poor organization results in a late payment you may end up with
exorbitant late fees and in some cases poor credit and higher interest rates or
insurance payments as a result yes even things like car insurance rates
are determined by your credit ratings therefore if you want to live life like
the rich then organize your finances and use that freed up time and money to
further grow your wealth management skill number four recording and
reviewing recording and reviewing your expenses is another activity that many
people will shrug off as being time consuming and unimportant but the rich
know that what isn't measured isn't managed you see when it comes to
recording and reviewing the rich run their financial lives like a business
most businesses prepare regular financial statements of cash flow
financial position and income and while one instance of these reports doesn't
offer that much information as they begin to record their business
transactions over time they allow themselves to study trends and measure
their financial progress the same process is used by the rich as they too
will diligently record their income expenses and cash flow situation and
then review what decisions have led to times of prosperity and which have led
to down periods for instance during a period of time where you are busy at
work you may see your expenses balloon as you leverage the power of retail
therapy to manage your stress levels or perhaps you will come to notice that
your income rises every time you attend a networking event as these meetings
offer you the opportunity to take on more clients in your business in short
the rich are masters in the management of their finances and by giving their
money the attention it deserves they are able to continue to see their wealth
rise money rule number three you must employ enthusiasm there's no doubting
the fact that money is important money allows us to pay our bills purchase or
rent a home and send our kids to college but the truth of the matter is that most
people have the wrong attitude when it comes to the management of their money
the poor will blame money for every single problem they have in life but the
rich instead see money as a tool to add to their life's enjoyment now you may
say that of course the rich love money because they have a lot of it but in
reality these people usually had a healthy appreciation for money before
they ever amassed significant wealth therefore i think it's worth asking what
are some of the ways we can all learn to gain pleasure from our financial state
tip number one accept financial responsibility when the poor make a
money mistake they dwell in their guilt and often spend more to cope with their
emotional turmoil however the rich know that when it comes to money you must
accept responsibility but reject guilt when things go wrong or we mess up no
matter how bad it is just tell yourself that it was an opportunity to learn
something else that doesn't work take time to learn from the situation and
make a commitment to do better next time remember that the road to success with
money is always under construction tip number two make financial goals fun
whether it's checking off another day of no spending on your calendar or striking
off one of your long-term income goals the act of hitting any financial
milestone is a great way to build financial momentum in fact hitting these
goals can be so important to your overall success that many financial
advisors will often suggest strategies that allow individuals to gain these
bursts of momentum rather than taking the most economical path possible for
instance paying off smaller debts first even if the interest rate is higher on
the large ones isn't as financially beneficial but taking a debt or two off
your plate provides you with the motivation you'll need to continue your
debt elimination journey therefore if you aren't already setting financial
goals then it should be a top priority in your new and improved financial life
tip number three celebrate your financial achievements like getting a
good grade on an exam your financial achievements should be celebrated each
success makes your next financial endeavor easier to tackle even if it is
more challenging however it goes without saying that you shouldn't be celebrating
by spending a lot of money for smaller achievements treat yourself to a netflix
movie night or for bigger achievements go for a drink with your significant
other by celebrating on the cheap you will only further support yourself on
your path to riches in fact learning how to reward yourself is only one of the
many money decisions you need to get right but if you want to learn what
other choices separate those who become rich and those who stay poor then click
on over to this next video and let's get started