Important Laws of Money for Personal Finance and Money Growth

In the times of financial conflicts and hardships, we are all endeavouring for financial growth.
While these are difficult times for economic stability, it is crucial to consider what we should be doing.
Every decision you make today and every step you take is of supreme importance for your financial health.
That is why we are here to talk you through the laws of money for personal finance and money growth.
These areas following:

  • Invest and Track your Net worth
  • Cut down your expenses.
  • Invest in Yourself.
  • Out of Debt; Out of Danger.
  • Net Worth is better than income.
  • Don’t buy depreciating assets.
  • Make your money work for you.

I am sure this will prove to be extremely helpful for you.
Quoting one of the famous quotes by Charles A Jaffe; “It is not your salary that makes you rich, it is your spending habit”.
If you ponder over this saying it makes a lot of sense. It is vital for you to track down your expenses, to plan how you are going to spend your penny.

The term “Personal Finance” itself refers to planning. It portrays a path for you to manage your expenses, draw a budget, and make a scheme for your coming days.
But this doesn’t simply mean “Planning”. You have got to act on it too.
If I quote a ratio for you, I’d say Personal Finance is 80% your activity and 20% your intentions.
To acquire financial independence and to enhance your earning power, there are certain strategies and changes that are required from you.
Now I know the word “Change” is not very acceptable by us human beings psychologically, but some changes are essential for a better future.
If I may quote James Altucher, “The first rule of personal finance is that it’s not personal and it’s not financial. It’s about your ability to make ten changes and not get too depressed over it.”
As everything in life has some rules, here are several important laws of money to lead you towards financial independence.
Stick with us, and I am sure you will not be disappointed.

Invest and Track your Net Worth

When you grab a notebook and start mapping out your finances, write Investment on top.
Investment is your best option to double your cash and plan your future.
Among other instabilities you will encounter in your life, your money is the most problematic. You are never really sure about your future; you never know the security your current profession would bring in times ahead.
I am not asking you to give up on that. No, don’t, but you can always play smart.
A person who is looking out for ways to expand their finance will consider investing.
You have numerous great options for you to invest in and profit accordingly. Invest in companies and assets that you are sure will progress in times ahead and boost up your earning power.
Consider you invest $1 today on a particular stock, but as the time passes, the market price of that asset increases and you gain double the benefit. Isn’t this thrilling?
That’s the smartest technique to widen your pockets.
Along with this, tracking your net worth is also important among the five laws of money. It is an essential step for you to get in control of your finances.
With this helpful law, you will be able to track your progress and know exactly where you stand.
Your net worth, in short, is what your financial ownership is.
Here are some tools you can use to track your net worth:
Personal Capital
Mint
Google Spreadsheets
You can hop into these easy to use websites any time and trace your Net worth for better understanding.
With these very significant laws of money, I am sure you will head to enormous financial growth in no time.
Stay Motivated.

Cut Down your Expenses

Let’s look at how we can cut down our expenses.
Honestly, this is indeed a bit hard one to acquire given how our expenses are drastically growing just as we are.
I’d say they are growing a lot faster than us.
It would be best if you kept a stern eye on your expenses.
There is no doubt that our expenses are a lot more than our income, and for your money growth, it must be the other way around.
Spend less than you earn.
Keep a record of your monthly income and note down your every minor to major expenses.
Once you are aware of your budget and expenses, you must try to cut some of them from the list.
Always plan your expenses in a way that they are less than your income.
It is a little difficult, but with hard work and persistence, everything is possible.
You can always save the remaining money for later use.
Try to spend your limited amount of budget on your needs than wants. It is always better to restrain now than to regret later.
As it is said, “Be aware of little expenses, a small leak will sink a great ship.”
For you to achieve financial independence and multiply your cash, this is among the most vital strategies for you to savour.
You can do it!

Invest in Yourself

Here comes my favourite law.
Invest in yourself.
For you to grow your money, you must have enough knowledge and potential in yourself.
Today the world is in a rat race, the one who plays smart wins. The best thing you can do is to invest in yourself, make time to learn new things.
Stop binge-watching Netflix all the time, rather go out and learn a new skill. For your convenience, you can even acquire a new talent while watching tutorials on YouTube, all by sitting on your beds.
That is how easy it is for you now.
The more skills you have, the more you will be able to utilize them to build up your earning power and will eventually get a treat.
Every hard work pays off in the end.
I am going to motivate you with this inspiring quote “The best investment you can make is an investment in yourself, the more you learn, the more you will earn”.
The modern world is seeking a new unique talent every day. With these freshly acquired skills, you will have extraordinary opportunities knocking at your door day-to-day.
Along with that, it will also give you massive confidence and boost up the self-esteem that you can use as a weapon against the world.
Gain enough knowledge and acquire new skills to increase your earning power.
Put yourself first.

Out of Debt; Out of Danger

The secret to not being able to grow your money is none other than debt.
Being honest, we don’t have enough needs than we have debts to be paid hanging over our heads.
In the heat of the moment, we do buy luxurious and expensive resources to impress others. Still, every night the anxiety of paying these debts envelop our souls like a never-ending nightmare.
You have got to give yourself some relief.
If you need to do something for yourself, if you wish to grow your money, then, STOP GETTING INTO DEBTS.
I’m screaming these words to you.
When you are old, it’s not going to matter who said what. What is going to matter is your financial status.
It is understandable to purchase certain vital needs and clear their debts. However, it is foolish to keep on buying unnecessary resources and have a pile of debts by the end of the day.
You will not believe when I tell you how much you waste your money just on credit cards. If you are willing to follow any of the five laws of money, follow this.
On average, credit cards cost you 15% on your annual interest; hence if you have $1000 on your credit cards, then you are paying $150 extra, every year.
Isn’t this something horrifying?
Imagine how useful that $150 could be for you.
Your money can never grow if you have debts to pay, it’s like no matter how much you earn it will drown in the ocean of debts.
Debt is the worst poverty you will encounter that will slowly snatch your money out of your hands.
Hence, follow this very important law of money and stop getting into debt to impress people.
It’s your life, not theirs.

Net Worth Is Better Than Income

Everything we talk about in personal finance goes in a circle.
However, it is undoubtedly a great option for you to give more importance to your net worth than income.
Your income is the limited amount of money you get from your profession. As little it is, you are bound to pay taxes on income as the Government is concerned about your earning, not with what you own.
Your Net worth, however, is the value of your assets and it is for sure better than mere income.
You are not asked to pay taxes on your assets.
You are never really sure about your income; hence with assets, you feel more financially secure.
Of course, no one is saying income is not important; it is. Both go hand in hand. But it is better to focus on what you have than what you earn.
The more assets you own, the more your net worth is.
But the question is, how do you earn the assets? Well, Investment is the answer to this question.
It is the natural law of money; it comes to those who try.
Therefore, we have several great investment options for you to choose from.

Don’t Buy Depreciating Assets

An intelligent investor always does thorough research before investing.
If you are hoping to get profit out of your investments, then don’t invest and purchase depreciating assets.
These are the assets whose values decrease over-time. If you purchase a certain depreciating asset today and try to sell it after a few years, you will see the sudden decrease in its price.
Purchasing a depreciating asset can hit you with a loss.
Such assets include; Vehicles, Machinery, land buildings, etc.
Always be cautious while purchasing them.

Make your Money Work for You

Don’t work for your money; make your money work for you.
It is a very clever strategy for you to grow your money.
If you have enough money saved, make it work for you. Invest that money into different outgrowing stocks and assets, and benefit from it.
Investment is like water that you pour on your seed (that is your money) for it to grow.
Start with small investments today and be persistent as it pays you off with a double.
You have got the steering in your hand; lead it in your direction.

The Crux

With all these important strategies and money laws, I am sure you will be able to grow your money effortlessly in no time.
All you need to do is certain planning, stay persistent, and follow these steps for your better financial health.
Stay determine and hopeful.

author

ABOUT THE AUTHOR

Jun Sing Tan

I help young adults and working professionals achieve their financial goals with a full suite of risk management and wealth accumulation solutions. I firmly believe that financial education should be easy and achievable for all. I am committed to service and hope to be your one stop financial solution.

author

Jun Sing Tan

November 21, 2020

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