How to Become Rich: 3 basic financial principles



Bill Gates once said: "It is not your fault to be born in poverty, but to die in poverty is entirely your fault."  Success and wealth are always waiting for those who try and strive.  

How to Become Rich? To get rich, you may first need to learn to think and act like a rich person.  Have you ever wondered why the rich get richer, the poor get poorer?

 The answer lies in how you manage your money.  In fact, most people do not realize that, in life, it is not how much money you make, but how much money you keep and how it flourishes.  In order to be able to manage money effectively and improve your own earning ability, you need to master 3 basic financial principles below.

1- How to Become Rich: buy assets 

Principle 1 for How to Become Rich is that you have to know the difference between assets and lost assets, and to be rich you have to buy assets.

It sounds simple enough, but most people don't know the difference between assets and lost assets.  Assets are what put money in your pocket and lost assets are what takes money out of your pocket.

 Specifically, assets are things that will generate profits for you, make your income increase, for example, profitable stocks, rental properties, profitable business goods ... Lost assets are things that only increase your cost.  For example, consumer loans, energy-consuming equipment for entertainment purposes such as expensive cars, cell phones, bags, and expensive clothing.

 If you want to become rich, let's buy assets and vice versa, if you want to become poor, buy real lost assets.

How to Become Rich: 3 basic financial principlesSuccess and wealth are always waiting for those who try and strive. / ph: pexels

2- How to Become Rich: generate multiple sources of income 

Principle 1 for How to Become Rich is that you need to generate multiple sources of income.

 Not only students but also those who have worked and have administrative jobs should also diversify their sources of income.  In today's economic crisis and inflation, you need both active and passive income.

 The first is active income.  This is the source of income from a full-time or part-time job.  You exchange your time and effort for money fairly. The second is passive income.  These are income from investments such as stocks, real estate, business ...

To understand simply, an income stream will help you survive.  But to live well and live well you should have a second and third source of income.  This income stream supports the other and gives you a sense of safety.

3- How to Become Rich: Time is money 

Principle 3 for How to Become Rich is that you always should remember that "Time is money".

It is no coincidence that people say "Time is gold and silver".  If you want to ask how important time is, ask the mother who is 9 months and 10 days pregnant.  Ask the athlete when participating in the contest, the time will be counted by a second.  And ask those who are close to death to understand the meaning of the phrase "Time is gold and silver".

 Every day, we all have 24 hours.  Time is basically the fairest thing for everyone.  People with a lot of money only have that much time, and someone with little money is no exception.  The secret to How to Become Rich, therefore, is not what you do with that block of time, but how you spend that time.

 Rich people are always willing to spend money to "buy" time.  They accept to open a wallet, spend money to hire people to help them handle work.  In this way, they save a huge amount of time.  Remember, doing everything yourself to save money is a mistake and wastes precious time doing something else.

 Think of the joy and quality time that hiring someone else (or buying assistive appliances like robot vacuum cleaners, dishwashers, washing machines ...) can give you.  Of course, sometimes we can't shorten working time, but we can completely prevent time wasting.  Saving time is saving money, good time management is managing your cash flow well.

How to Become Rich: 3 basic financial principles

Your comment
*
*
*
*
 Captcha

How do 1% of the rich in the world manage their finances?

If someone tells you how easy it is to get rich, they are fooling you.  You won't be rich overnight.  But if you persist, you will definitely make progress over time and get closer to the finish line.

If someone tells you how easy it is to get rich, they are fooling you.  You won't be rich overnight.  But if you persist, you will definitely make progress over time and get closer to the finish line.

Read more

5 principles for GREAT SUCCESS

Getting rich is like a game.  Many people will join this game without even understanding the basic rules.  If you make this mistake, you will never be able to achieve the GREAT SUCCESS you want.  So, below are 5 principles to help you succeed in this game.

Getting rich is like a game.  Many people will join this game without even understanding the basic rules.  If you make this mistake, you will never be able to achieve the GREAT SUCCESS you want.  So, below are 5 principles to help you succeed in this game.

Read more

The 10 industries that generate the most billionaires in 2021

According to the ranking recently published by Forbes, the world currently has 2,755 people with assets from 1 billion USD, an increase of 660 billionaires compared to last year.

According to the ranking recently published by Forbes, the world currently has 2,755 people with assets from 1 billion USD, an increase of 660 billionaires compared to last year.

Read more

TikTok's parent company is valued at up to $250 billion

At $250 billion, ByteDance will be a bigger company than even established corporations like Exxon Mobil and Coca-Cola in terms of capitalization.

At $250 billion, ByteDance will be a bigger company than even established corporations like Exxon Mobil and Coca-Cola in terms of capitalization.

Read more

Why are there only less 3,000 billionaires in the 8 billion people world?

Why does the world have nearly 8 billion people but just have less than 3,000 billionaires? There is a sieve capable of screening the rich and the ordinary.

Why does the world have nearly 8 billion people but just have less than 3,000 billionaires? There is a sieve capable of screening the rich and the ordinary.

Read more

7 financial lessons learned from Billionaires

7 financial lessons learned from billionaires, remember carefully if you want to be rich and successful.

7 financial lessons learned from billionaires, remember carefully if you want to be rich and successful.

Read more

2 ways to become Super-Rich that Millionaires have been applying

Saving and selling something will help you accumulate assets, but the second way will help you get rich much faster.

Saving and selling something will help you accumulate assets, but the second way will help you get rich much faster.

Read more

7 reasons why laziness actually helps you get GREAT SUCCESS

What if being lazy really made you to achieve success and get more great success?  Surely many people will love this approach.  In fact, many lazy people achieve great success.  History gives us many vivid examples.

What if being lazy really made you to achieve success and get more great success?  Surely many people will love this approach.  In fact, many lazy people achieve great success.  History gives us many vivid examples.

Read more

5 emotional traps prevent you from GREAT SUCCESS

Emotions are the enemies of GREAT SUCCESS - emotional traps may keep your life in failure.

Emotions are the enemies of GREAT SUCCESS - emotional traps may keep your life in failure.

Read more

Copyright © Vuhes. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Vuhes.