3 Key Rules of Financial Stability You Don't Know About Yet

Money is an interesting thing. If you treat them like a target, they are harmful. After many misadventures, you inevitably begin to feel that funds will never be enough. That something is missing in you yourself. As time passes, fear begins to affect your appearance and your relationships with people. You will turn into an empty shell, you will constantly feel dissatisfaction and attract people to you in the same state of inner confusion.

Sounds awful? Still would. Therefore, we have found simple rules for you that will help you achieve long-term financial stability.

1. Less is more

Pareto's Law, or the 20/80 Principle, applies to increasing wealth as well as everything else.

20% of your investments (this can be, for example, shares of companies such as Amazon or Chipotle) will determine 80% of your wealth. 20% of unnecessary purchases (for example, dinner at a restaurant every night, a membership to a fancy gym, or new clothes) will account for 80% of your monthly expenses.

20% of the energy, time and money invested by you determines 80% of the result. This is Pareto's law.

The author of the book "" Greg McKeown has actually found that the orderly pursuit of less leads to success. Often, we just need to give up the idea that we can get everything right away before laying a solid foundation for success.

So your main task as your own financial manager is to focus and weed out unnecessary expenses and investments.

Focus on your desires and make financial decisions based on what you truly love and believe in. And discard all the nonsense.

When you stop buying 30 different lipsticks of the same shade and spending hundreds of rubles a day on juice, willpower begins to awaken in you. You will be able to start investing your funds. You can buy your own home. You can go on a real journey.

But first you need to accept less. This is the main thing.

2. There are no perfect financial solutions

Usually, the concept of "ideal" hides the need to please others. You want to be seen in a certain light, so you buy something that will become a symbol of the desired achievements. As a perfectionist, you cannot part with the past, and it begins to impose the future on you.

If you're a financial perfectionist, you spend two hours a day planning your budget to the last penny and skipping a meeting that might change your entire career. You agonize over every action with securities. You constantly feel that you are doing something wrong. You change your mind, but you still remain dissatisfied.

Don't get hung up. Otherwise, you will only harm yourself.

3. Appreciate the people around you and their needs

If you rent out a house and save on maintaining it in good condition, then money is more important to you than people and their needs. You are violating a basic law of nature.

After a while, the tenants will start to mistreat your belongings. Costs will increase. We'll have to chase tenants to get money.

What if you start taking better care of your home and treating tenants with respect? Good people will want to live with you. You will create a certain kind of demand. The demand is among people who pay on time and are good with your property, the demand is among people who will not want to move out. There will be so many offers that you can choose tenants.

Your income will become constant, costs will decrease, and areas will not be empty. These are the main characteristics of profitable property. In addition, stress levels will decrease. After all, now you earn money by taking care of people and their needs.

If you try to increase your income by saving on others (for example, by refusing to tip), you only earn in the short term, and everyone else suffers losses. In the end, you will also be at a loss.

Try not only to make a profit, but also to bring something useful in the lives of other people, and you will find financial stability that you never dreamed of.