The Successful Leaders 6 Golden Rules of Finance (June 2020)

The Successful Leader’s 6 Golden Rules of Finance (June 2020) The Successful Leader’s 6 Golden Rules of Finance 2020 Image Source: iStockWealthy  people tend to think alternatively, deftly  shifting perspective and rigorously pondering the various dimensions in the apparently commonplace. Amassing wealth seems to be effortless, when really it’s about sticking to the golden rules of finance.It’s often said that rich people let their money work for them, instead of working for money. Indeed, most wealthy people  go  against the grain, and they seem to effortlessly  avoid  the most common mistakes about money and time.Of course, it’s not effortless. It requires focus and wisdom. So here are 6 golden rules of finance that the most successful people stick to, avoiding basic mistakes about money, and helping them to deftly sidestep the servicing of huge debts for the duration of their working lives. (adsbygoogle = window.adsbygoogle || []).push({}); 1. They Invest in ThemselvesImage Source: AmazonThis  requires time, effort and expense, but the payoffs are huge. It has always been the case. Americ as first millionaire Benjamin Franklin, said, “An investment in yourself pays the best interest.”Education is something that wealthy people take into their own hands. Many of them turned their backs on formal, structured education at high school level, or flunked their college courses because of the more pressing priority of pursuing their ambitions.If you have dreams of emulating the achievements of the worlds wealthiest, lifelong learning is a prerequisite; it takes time to amass knowledge from the huge amount of learning material available, and some expense too. But, to refer back to old Ben Franklins dictum, its an investment that pays the best interest.Benjamin’s Franklin’s status as an historic figure â€" as laid out in Walter Isaacson’s wonderful An American Life â€"  would seem to establish self-investment as the most important of the golden rules of finance, but far from it. Check Price 2. They Don’t Buy on CreditImage Source: AmazonMillionaires  dont use credit for personal expenditure, but wait until they can afford it. If you cant afford them, attainment of material possessions is the ultimate illusion. You are spending someone elses money, and the interest rates are high.Bill Bonner is  a millionaire businessman and best-selling writing who has been studying the credit system  since the 1990s. He is one of the most vocal  critics of credit, and  the obliviousness of most people to their dependence on the credit system.  It’s a system that Bonner warns is unsustainable.On a grand scale, avoidance of credit means avoiding mortgages. Repayments and associated bills and taxation demands that come from owning a property, mean that ultimately, you pay a multiple of the purchase price. Its a better option to rent a home until you can afford it in cash. That may seem a huge prospect, but what a golden goal this particular golden rule of finance would deliver.Like Bonner, try to think of credit strictly as something to be used solely for busi ness  development, rather than a means to attaining personal trinkets that you could do without ever, or until you can afford them with your own cash. Check Price (adsbygoogle = window.adsbygoogle || []).push({}); 3. They Save ConsistentlyConnected with credit prudence is the  simplest of all our golden rules of finance. When  you do have the cash, its important not to use it for impulse purchases of the trinkets that tempt us so when our bank accounts are in ‘the black’. Wealthy people ensure that they save a consistent percentage of everything they earn. Again, credit, in the form of personal loans, is best avoided.4. They Don’t Overdo ‘Fun’Image Source: AmazonIf you’re  in business, its important to focus on the fact that you got into the game because you wanted to, and to clear some space for not thinking about work, and enjoying some of the money you make. However, as with warnings about credit and impulse purchases, most wealthy people avoid or strictly limit exp enditure on entertainment. This sets them aside from the majority of young adults who spend up to 50% of their paychecks on gaming, DVDs, etc. This is a significant sum of money, and the items demand a significant amount of your time. Wise entrepreneurs  make this one of their most important  golden rules of finance: using their money, and  their time, to  improve themselves and grow  their businesses.Joshua Becker’s  The More of Less is a brilliant wake-up call to curb the excesses of consumerism. It’s a design for minimalist yet a super-productive life, stripped of the acquisitive baggage that is not only weighing you down and cluttering your mind and space, but also costing you money. Check Price (adsbygoogle = window.adsbygoogle || []).push({}); 5. They Don’t Buy Substandard GoodsYou get what you pay for: its one of the oldest consumer laws in the book. Is there really any point paying 50% under the odds for an item that will only endure for half the time you would have been served by the superior product? Skimping on products that you need is short-term, ‘here and now’ thinking. While it is important to live in the moment, there is no point living in the moment if you are making flawed projections about the future. A $100 suit simply can’t retain its off-the-shelf condition for anything like the length of time a $200 suit will continue to make you look sharp. Think about that the next time you are confront it, and establish it as one of your golden rules of finance. Seek out value-for-money quality, rather than skimping on necessities.6. They Put Family FirstImage Source: AmazonWarren Buffett is arguably one of the the greatest investors of all time, having a net worth in excess of $60-billion through his investing skills. Buffet is also famous for his practical ethos, and putting first the personal needs of himself and his family.Buffet is the very embodiment of down-to-earth. He chose to live in Omaha rather than on the East or West Coast of the US, and still lives in the same family home that he bought for $31,500. Indeed, he doesnt even have a smartphone!His family grew up in an environment that was normal. His son Peter famously was around 25 before he grasped what his father did, because he and his siblings “didnt grow up around the exposition of wealth”.It’s probable that Buffett or any other rich high-achiever would be unable to reach such a state of grace if they were not open with their spouses about finances.Life insurance, pensions and other retirement options frequently draw fire from wealthy people, who insist that it’s  better to use money for building wealth while you’re  young, rather than saving it in a fund that cannot be accessed until you are in your 60s or 70s.Although a widely read man, Buffett has not authored any of his own works. But Warren Buffett’s Three  Favorite Books by  Preston George Pysh is a brilliant analysis of how the world’s third richest man shaped his philosophy mo stly from the information in three booksâ€"The Wealth of Nations (1776) by Adam Smith, and Benjamin Graham’s Security Analysis (1934) and The Intelligent Investor (1949). Check Price