5 Rules of Money

 Usually common people works hard to get money so that their daily needs can be fulfilled. They work for money and then save little from it for their retirement life. They don't want to retire at early age and enjoy their life, they just go on struggling because they are not guided properly. They don't know the rules of money which they never taught us in school.

Mostly common people's dream is to have 9-5 job, and enjoy on weekends. Their goal is not freedom but their goal is only money. So they just worked whole month for their limited salary. So to live freely here are some money rules which are used by some wealthy people in their daily habits. 

Here are 5 rules  of Money

1. Learn how to invest. 

Investment is always best way to grow your money. It is better than saving because saving money means giving rest to your money and investing means making another money from it. It will grow if you invest it wisely. You should research before investing in anything, because it may be scam sometimes. So always invest carefully. 

Here are some avenue where you can invest your money. 

1. Debt Mutual Funds

Here you can invest easily because it is considered as less risky compared to equity funds. Debt mutual funds primarily invest in fixed-interest generating securities like corporate bonds, government securities, treasury bills, commercial paper and other money market instruments. But you should not get full dependent on it, because these mutual funds are not risk free also. They carry risk such as interest rate risk and credit risk. So investor should research before investing. 

2. Public Provident Fund (PPF) 

PPF is a long term fund of 15 years, here the interest is huge of compounding of tax-free, especially in the later years. But remember, interest rate of PPF is reviewed every quarter by the government. 

3. Real Estate

Don't depend on your single house which you live currently because it is not considered as an investment. You should try to buy another house by looking the location and that will determine the value of your property and also the rental that it can earn. So it's a best investment in assets. 

4. Gold

You can invest in gold with little less worries because investing in gold can be less risky. As it is concern such as safety and high cost. Investment in paper gold is more cost-effective and can be done through gold ETFs. Such investment (buying and selling) happens on a stock exchange (NSE or BSE) with gold as the underlying asset. 

2. Never work for Money. 

As I told you that most people work for money because their goal is to earn only money. But some rare people want just freedom. Freedom means just financially free. They focused on skills and work hard for years without getting any results or phrase . 

You may know about famous footballer Christiano Ronaldo who is an inspiration of millions of people around the globe. In an interview he had also told that to be passionate about your dream and don't look after the money. If you follow your passion then you will automatically will get money , and so much of money that you can't even imagine. Look how rich is Ronaldo today, he has set his level at the top. He started from 0 and now ruling the football's world. This happened because he followed his passion and gained lot of excellence and skills from it. He had earned $650 million from playing football which is his active income. And he has life time contract of $1 billion from Nike  which is his passive income. And that's how you can also build your personal brand by following your passion other than money. 

3. Do Something so that Money works for you. 

Doing something means what? Making your money work for you means taking the control of your finance, other than using that control to continuously improve your financial stability and security. Or there are also other streams where money works for you. You have to just one side hustle other than jobs like being a business partner with someone you know, you can open YouTube channel or you can do digital marketing, selling eBooks etc. These are the streams where money works for you even when you are sleeping on the bed. These are the extra other income sources which generate passive income to you. 

4. Save Money, other than showoff. 

In  today's world showing off has become trend. If we compare a life of a simple and real person and a showoff you will notice that the person who is simple will have a faster growth in the future as compared to showoff. People showoff to seek attention or to get atten from others. 

Have you ever noticed how billionaire's live and how some people live with showing off their particular wealth. People like Bill Gates, Elon Musk, Jeff Bezos and Mark Zuckerberg who are top billionaire's of world, they usually live simple like they wear simple clothes and they don't showoff  because their goal is to be rich not to look rich. Do you know that Mark Zuckerberg wear same types of clothes everyday so that his time would not waste on choosing clothes everyday. These  are their habits and mindset which make them great. And when you see some particular rich man he will wear branded clothes, he will live and shows his luxurious life to everyone. Now you have to choose that in which category do you want to live. 

So other than wasting money on brand you can live below your mean by saving lot money. 

5. Think that how can you will be Financially free early. 

Now, you would be thinking that why I had taken this point but it's the most important one. Because it depends on how early you start hustling for your dream. If you want to be financially free at early then you should save and invest money early. If you start putting Rs, 10,000 a month at the age of 30 in an option that gives 8% compounded annual returns, you will have a corpus of Rs 1.5crore at 60. If you delay this by 10 years but enhance the monthly investment to Rs, 15000, you would have invested the same Rs 36 lakh but your corpus would be much smaller at Rs, 88.64 lakh. And if you start in your 20's it would be the best thing for you to get free at early. You have to just focused on savings, the more you save and invest, the more you will make the money. And then you can live the life you want.