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Brian Tracy wrote a chapter on the “laws of money” in “The 100 Absolutely Unbreakable Laws of Business Success
“Money tends to flow toward people who can use it in the most productive ways to produce valuable goods and services and who can invest it to create employment and opportunities that benefit others.
At the same time, money flows away from those who use it poorly or who spend it in nonproductive ways.”
In short: You get more money when you use it well and you lose money if you use it wastefully.
That key idea seems obvious, but it’s mostly ignored by a lot of people, similar to how smokers know that smoking is bad but continue to do so anyway even if they wish to have good health.
Most of us know that wasting all our money on certain things is bad, but we do it anyway even if we someday hope to be rich.
What’s worse is, many of us don’t even know that we’re spending money unwisely!
A Few Examples on the Wise use of money:
Get a loan to start a profitable business like a small food stand catering to workers at a construction site.
Invest a part of your earnings in proper and well-chosen assets like stocks, mutual funds, real estate, etc.
Spend money on your education: buy books that can teach you how to enhance your career, start a business, or invest properly to maximize gains and minimize losses.
Spend money on your child’s tuition and education expenses.
Some people use money Foolishly:
Borrow money or get a loan to buy an expensive new car or furniture to impress people.
Spend all their money on cigarettes, liquor, excess groceries, expensive clothes and gadgets they don’t need, etc.
Gamble and lose all their money at a casino when they could have used those to start a business.
Buy lottery tickets all their lives and never realize that they’ve spent a great fortune throughout the years.
“The happiness of most people is not ruined by great catastrophes or fatal errors, but by the repetition of slowly destructive little things.” – Ernest Dimnet
This is an example of the law of cause and effect. It all seems small at first, especially the “wasting money” part, but over the years, it adds up a lot.
A lot of people want to get rich and live prosperous lives but forget this basic law. They think they’ll get rich if they work harder, but if they never change the terrible money habits the learned, they get nowhere. They’re also the type to complain about how even though they work harder, it’s “other people” who get rich.
They never realize that people don’t get rich because of “luck”… it’s that those who disciplined themselves to use their money wisely are the ones who get rich.
You can do it too if you learned to do what they do, and since you’re reading this, I can safely say that you’ve already started to learn.
Now, here’s your LifeWork (like homework, but for your livelihood).
Think about and answer these questions carefully:
HOW can you use your money wisely? Is there something you don’t know yet? What do you need to learn to do better than what you’re doing now?
Do you need to learn how to save it properly? (“Your Wealthy Mind Savings and Budget Plan”)
Do you need to learn how to use the power of self-education? (“From Books to Riches”)
Do you need to learn some basic tips on investing in stocks? (“Stock Investing Basics: Benjamin Graham’s 4 Rules on Investing in Common Stock”)
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