For your convenience I have listed below 10 Golden Money Rules that are the catalyst to your millionaire-aspirations.
1. Invest in financial lessons before investing in financial assets.
You don't drive without learning driving and getting a license. Do you? Similarly, you need to first learn how to acquire good assets and manage them.
2. Have a detailed Financial Roadmap.
Without one you could easily get lost in the financial maze and may not reach your goals. Get yourself a financial GPS.
3. You are unique. Hence, do what suits you.
Blindly copying others is not a good idea. Your assets, liabilities, needs, desires, time-frame, risk-appetite are different from your friends, neighbours, colleagues, relatives. So naturally, your investment pattern too has to be different from them.
4. Keep things simple.
A simple term plan, a simple mutual fund, a simple medical insurance plan, etc. will work well in most cases. Don't be under the false impression that complicated products give better returns.
5. Start early, invest regularly and stay invested.
Time makes money. Even Einstein was impressed by the power of compounding. Assets are merely the tools, which Time employs to make money for you.
6. Always pay your credit card bills before the due date.
This will not only save you lots of avoidable interest charges, but also prevent splurging. It will ensure that you buy only what you really need.
7. Avoid Leveraging.
A millionaire with debt is a fake millionaire. I am sure you wouldn't want to be one.
8. Avoid exotic products and derivatives.
They have been rightly termed as Weapons of Mass Financial Destruction. Look what happened even to the mighty USA.
9. Seek guidance from professional financial advisors.
Right directions will save you a lot in terms of time, efforts and money.
10. Beware of scams and scheming agents.
If anything sounds too good to be true, it usually isn't true. Don't trust anyone. Triple-check every deal offered to you. Internet is a great tool to get right information.
This list should, however, be your starting point, not end-point. Educate yourself. Books, internet, seminars... you have so many avenues to choose from. After all it is your hard-earned money. So please do take good care of it.
In fact, I would go to the extent of saying that if you just follow one rule - KEEP THINGS SIMPLE - you will not go wrong with your financial decisions. (The financial lessons will be easy, the roadmap would be simple, you will not need any experts, you will avoid scams and exotic products, you will keep away from debt, you will not have any problems in paying your bills on time, etc.)
1. Invest in financial lessons before investing in financial assets.
You don't drive without learning driving and getting a license. Do you? Similarly, you need to first learn how to acquire good assets and manage them.
2. Have a detailed Financial Roadmap.
Without one you could easily get lost in the financial maze and may not reach your goals. Get yourself a financial GPS.
3. You are unique. Hence, do what suits you.
Blindly copying others is not a good idea. Your assets, liabilities, needs, desires, time-frame, risk-appetite are different from your friends, neighbours, colleagues, relatives. So naturally, your investment pattern too has to be different from them.
4. Keep things simple.
A simple term plan, a simple mutual fund, a simple medical insurance plan, etc. will work well in most cases. Don't be under the false impression that complicated products give better returns.
5. Start early, invest regularly and stay invested.
Time makes money. Even Einstein was impressed by the power of compounding. Assets are merely the tools, which Time employs to make money for you.
6. Always pay your credit card bills before the due date.
This will not only save you lots of avoidable interest charges, but also prevent splurging. It will ensure that you buy only what you really need.
7. Avoid Leveraging.
A millionaire with debt is a fake millionaire. I am sure you wouldn't want to be one.
8. Avoid exotic products and derivatives.
They have been rightly termed as Weapons of Mass Financial Destruction. Look what happened even to the mighty USA.
9. Seek guidance from professional financial advisors.
Right directions will save you a lot in terms of time, efforts and money.
10. Beware of scams and scheming agents.
If anything sounds too good to be true, it usually isn't true. Don't trust anyone. Triple-check every deal offered to you. Internet is a great tool to get right information.
This list should, however, be your starting point, not end-point. Educate yourself. Books, internet, seminars... you have so many avenues to choose from. After all it is your hard-earned money. So please do take good care of it.
In fact, I would go to the extent of saying that if you just follow one rule - KEEP THINGS SIMPLE - you will not go wrong with your financial decisions. (The financial lessons will be easy, the roadmap would be simple, you will not need any experts, you will avoid scams and exotic products, you will keep away from debt, you will not have any problems in paying your bills on time, etc.)
Sanjay Matai is the promoter of The Wealth Architects ( http://www.wealtharchitects.in ), a personal finance portal that focuses on assisting individuals to plan their finances. He is also engaged in spreading financial literacy through numerous articles/columns and his books viz. "Millionaires don't eat cakes... they make them", "10/10 Now control your money... Perfectly", "Plan for Prosperity" and "The Money Gyaan".
Article Source: http://EzineArticles.com/?expert=Sanjay_Matai 
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