Money Advice: The Best Financial Advices Ever

Money Advice: The Best Financial Advices Ever

Are you struggling financially? Well, than you might need the following best every personal finance advices. The following personal finance advices are really eye opening. And after reading all of them, Believe me, Your Financial IQ won’t remain the same.

01) Start Savings & Investing as early as possible means NOW -

Well, yes. This is one of the best personal finance advise ever. If you want to be financially free and rich than the main thing you have to do is, Start regular savings and investing for your future from today only. Remember, the earlier you start the more compound interest work in favour of you and the more wealth you will be able to accumulate.

02) Always Spend less than You Earn -

This very simple advise is one of the best personal finance advise ever. Rich, Middle class or poor, all of us need to follow this advise. The main reason why people broke is because they spend more than they earn. They borrow money to fuel their high status life style and one day in the morning they find themselves in a deep debt up to their eyeballs and from that day they can’t stop working for the rest of their lives because they have to repay that debt.

03) Always Buy What you need and not what you want -

Understanding the difference between need and want is very important for becoming successful Financially.

04) Never Pay more price than its Value -

Everything in the world has an intrinsic value and you pay a price for it. What I advise you is that you should never pay more than anything’s real value.

05) Always Take a Good Debt. Never Take a Bad Debt -

This is very important for financial success. Any Asset producing thing is a Good debt while any liability producing debt is a ad debt. The advise is that, you should never pay the interest on anything that losses its value over the time. Say for Example a Car Loan. A Newly bought car will lose more than 60% of its value within first 4 years of you buy it.

Today’s Rich people are those who have never taken a car loan or any other kind of bad loan. But they have always taken a good loans such as Educational loans, Business loans, property mortgages..etc.. and that’s why after repaying a debt, now they have assets which are worth more valuable than their debt.

06) Always Focus on Building Assets and you will become rich over the time -

Assets are something which appreciate in its value over the time. If you want to become rich than you have to focus mainly on growing your assets. Remember, the more assets you have, the more income these assets will throw (Passive Income) and thus more rich you will be. Rich focus on growing their assets while middle class focus on growing their Income.

07) Own Your Own Business -

David Bach learned this lesson as a money manager for Morgan Stanley before becoming the author of the New York Times best sellers "Start Late, Finish Rich" and "The Automatic Millionaire."

"My wealthiest clients were clients who owned their own business. The most important financial decision they made (that really made them rich) was they bought the building their business was in. In almost every case the building was ultimately worth more than the business at the end of their career.

"Today I own the building (commercial condo) that my company FinishRich Media is in. My building has appreciated more in two years than I earned on my first four bestselling books in royalties."