New rule of money #5. The need for speed: today, the faster a person can transact business, the more money he will make.
Pareto principle-the 80-20 rule
For many events, about 80% of the effects come from 20% of the causes
Applied in business, 80% of your business comes from 20% of your customers- so take good care of them.
If you want to win the game of money, you cannot be average, you need to be in the top 20%
New rule of money #6: learn the language of money.
It takes money to make money? No! Money begins with words and words are free.
There are four basic investment categories for the sophisticated investor.
Business: owning several businesses which are a source of passive income instead of several jobs which is a source of earned income.
Income Producing Investment Real estate: these are properties that provide passive income from rent. Personal home
Paper assets: stocks, bonds, savings, annuities, insurance and mutual funds.
Commodities: gold, silver,oil,platinum etc
Once you decide which asset class is best for you, study that asset class and invest your time before investing your money. It is not the asset that makes you rich, you can lose money in the asset classes, rather it is your knowledge of the asset class that makes you rich.
Never forget your greatest asset is your mind
Life is a sum total of your words!!
Avoid words such as “I can’t afford it” or “I can’t do it” rather discipline yourself to ask “how can I afford it?” “How can I do it?”
Never think, look or act like a poor person. The world treats you as you treat yourself.
New rule of money #7: life is a team sport, choose your team carefully.
Small business owner’s thinkers focus on increasing their income, BIG business thinkers’ focus on increasing their assets, which in turn increases their income.
Sell! Sell! Sell!! To get rich “you must learn to sell” become a student of the word sell. Poor people have nothing to sell but their labor. They have either little to sell, or don’t know how to sell or both.
New rule of Money #8: since money is becoming worth-less and less, learn to print your own.
How can you learn about money when you are afraid of making mistakes.
Assets puts money in your pocket without you working
Liabilities take money from your pocket, even when you’re working.
One reason why the rich get richer is because they work to acquire assets and everyone else acquires liabilities that they think is assets.
There are 3 parts to a great deal they are:
Partners: choose your partner carefully before you give him/her your money.
Financing: what are your chances of winning financially
Management: a good partner must be a great manager, this is true for any investment or business.
The main reason so many businesses fail or do not perform is mismanagement of enterprise.
Today’s challenge: read on a subject you know nothing about