4 financial tips from money management masters

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

John Rockefeller, Robert Kiyosaki, Dave Ramsey and George Clayson reveal the secrets of financial well-being.

1. Track your income and expenses

To begin with, it is important to understand how your financial affairs are now. Rockefeller advised that you always keep a record of income and expenses. He himself counted every dollar received, spent and invested.

First, start keeping records of your spending. To do this, review your bank accounts and card statements for the past three months.

Now try to define your priorities. Your past decisions don't have to dictate your future. Think about what is most important to you right now. Do you want to move? Going on a trip? Deal with the loan? The choice is yours.

2. Pay yourself first

George Clayson Entrepreneur, author of The Richest Man in Babylon.

Clayson was the first to suggest saving 10% of his income. This principle applies to any wealth. According to Clayson, you will hardly notice the difference, living on 90% and 100% of your income. But gradually you will accumulate the amount necessary to achieve your goals.

Try this principle for at least three months and see what happens. In order not to forget to save this 10%, set up an automatic transfer of funds to a separate account.

3. Live in moderation

Dave Ramsey Entrepreneur, author, radio host.

Advertising and popular culture have convinced us time and again that happiness can be bought. Although deep down, we still understand that a new car or the latest iPhone is not capable of bringing real life satisfaction.

Ramsey advises changing your approach to shopping and living in a more moderate way. So do you need a new phone or a new pair of shoes? Remember that making money is much more difficult than spending.

4. Understand the difference between assets and liabilities

Robert Kiyosaki Entrepreneur, investor, author of Rich Dad Poor Dad.

This item is for those who would like something more. For example, you dream of retirement earlier or devote all your time to charity. Or maybe you want to pay for the children’s education or are simply looking for additional sources of income. For this, Kiyosaki advises learning to distinguish between assets and liabilities. He calls assets what "puts" money in your pocket, and liabilities - what takes them out.

According to this classification, assets include: income-generating real estate, securities, royalties, investments - that is, everything that makes a profit. And liabilities can be called a house, a car, various gadgets, loans.

Kiyosaki advises to keep working at your job, but not to rely on it blindly, but to take your financial future into your own hands. You should not count on the state or someone else to ensure your existence. You must take care of yourself.