Alexander Gerchik
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Alexander Gerchik in Alexander,

Basic wealth principles

Bodo Schaefer - principles of wealth.

Principle # 1 is to save 25% of income and 50% of income excess on a separate account! Subsequently invest this money. Banks pay a penny and only save money from inflation!

Principle # 2 - Save! Only saving and investing money, you can become a millionaire in a few years. Wasteful lifestyle rarely leads to increased welfare in the beginning.

Principle # 3 - Our problem is that we don't treat our money. Love your money! Not in terms of how to spend, just take care of money. But no one says you have to abandon pleasures!

Principle # 4 - Create your financial plan for 7 - 10 years. Decide what you want and how much you want to earn in a year, two, etc. Decide what you will do to do this.

Principle # 5 - Dreams must not be small! Think globally! Dream about billions and great success (in your career, politics, etc.). Divide big dreams into small goals. Consistently achieve local goals (small goals), leading to a big dream.

Principle # 6 - You should think like billionaire or millionaire. Try to think in categories of rich people!

Principle # 7 – Be confident. Work on these principles. Money and people are drawn to confident people! Be confident in your success even when things go wrong! (Bodo Schaefer was bankrupt in 26 and lost everything, but he found the strength to rise and become a millionaire).

Principle # 8 - Do not be afraid of problems! Learn to enjoy your problems and failures. Big goals often give rise to major problems and difficulties. Solving problems, we become stronger!

Principle # 9 - (in fact, addition to rule # 8): those who fell, become stronger when they rise (read carefully this phrase and think). This is a very important rule for those affected by the crisis.

Principle # 10 - Financial prosperity is impossible without financial constraints and planning of your spending. Financial freedom is available through financial restrictions.

Principle # 11 – Good luck dances with those who invite it to dance!

Principle # 12 - If you decide to do something, but don’t begin to do it within 72 hours, you will never start doing it!

Principle # 13 - Do you believe that you will be rich? No matter, you believe or not, but if you follow elementary rules and principles of management of personal finance, you will become rich for sure! Moreover, it will happen not later than in 7-10 years. Get started right now to treat your money properly!

Principle #14 - (80/20 rule by Bodo Schaefer) 20% of our efforts lead to 80% of our results. 80% of our efforts lead to 20% of our results.

Principle # 15 - Wealth is our right given to us from birth. You shouldn’t necessarily be born in a rich family or get a good education to become rich. The only thing you should do is to treat your money with respect and strive for perfection.

Principle # 16 – Self-confidence and positive attitude to life are very important principles of financial success. Get a notepad (log book) of your success. Bodo Schaefer recommends to write in 5 things that you did well every day.

Addition to principle # 16 - If there are not so many notes per day (5 notes), write what you just liked today or why you are thankful to this day.

Principle # 17 - Think about your health. Success is impossible without good health. Wealth without health will not bring joy.

Principle # 18 - You should always have financial headroom for minimum 6 months. You can lose your work, income, work capacity and source of money. Many successful businessmen often ignore these rules.

Principle # 19 - Good earnings need good knowledge. Try to constantly learn, read, expand the horizons. Fools are lucky only in the casino and only from time to time.

Principle # 20 - Capitalism is like swimming with crocodiles. We cannot ignore the fact that you live under capitalism! ...The strongest survives. The strongest will be rich and hold back money.

Principle # 21 - Wealth is not how much you have spent in the casino, restaurant, resort or store. Wealth is something that you have saved.

Principle # 22 - You don’t get paid as much as you are worth. No, if you work for this money, this means you are worth so much. If something does not suit you, change work, lifestyle, change yourself!