Some chap shared online...
What I learnt about money from Centonomy.1. You can’t create wealth by only cutting on your expenses. You must invest and create other sources of income to supplement your main income.
2. Time value of money means, you must beat inflation. 100 shillings today will be worth less in 12 months due to inflation. Time can create money but money can’t create time. The one difference between the rich and the poor is the way they spend their time.
3. The most powerful force in the universe is the
compound interest. – Albert EINSTEIN. When you earn some dividends, re-invest.
4. The scarcity mentality (that you don’t have enough money) prevents you from living life in abundance. Even if life gets better, you won’t believe things have changed. All you will see is lack.
5. Tracking how you spend money and coming up with a budget are the first steps to your financial freedom. Discipline, prioritizing and allocating money are the keys to financial management.
6. Your residential / home property is not an asset, it’s a liability unless it earns you income. Why? Because you pay rates and other maintenance costs for your house. Unless you rent it out, it’s eating into your savings. The same applies to your car and your mortgage balance.
7. For your money to work for you, you must think like a factory owner and not like a factory worker. The question is, whose factory are you building?
8. When investing in real estate, your goal should be to purchase the property at a price below the market price. Do your research well.
9. Wealth creation does not happen like a miracle. It is a process and a result of a conscious, deliberate effort. Start with what you have.
10. The path to wealth creation is about saving not spending, Investing not consuming, sacrifices not extravagance, assets not flossets. Assets appreciates, flossets depreciates. The world will never run short of ways to spend money; phones, cars, entertainment, shopping, whisky etc.
11. If you want to create wealth, earn more than you spend. Don’t make your business your wallet.
12. Never be obsessed with inanimate objects like acquiring the latest phone or car. Invest.
13. You have important assets which are not in form of money that can work to your advantage: Skills, time, networks. Use them.
14. To make billions, you must think in terms of billions. Billionaire mindset is achieved through preparation and researching on investment opportunities. Stop being scared of billions.
15. If you must take a loan, let it be for investment purposes not for consumption. The faster you repay your loan, the less interest you’ll pay. Clear your loan faster. Stop accumulating bad debts.
In other news, the Young & Rich interview took place