What are the 5 Laws of Money?

What are the 5 Laws of Money?
In Physics, there are certain laws which stay true
regardless of time, one example is the Law of Gravity. When
it comes to personal finance, there are also certain laws.

In fact, there are 5 Laws of Money which I like to share
with you:

1. Money comes gladly and in increasing quantity to any
person who saves at least 10% of his/her earnings (first
step to Financial Freedom).

There are only 3 Cashflow Scenarios:

a. You spend more than you earn: This person has negative
cashflows and is likely to end up owing other people money.

b. You spend all that you earn: whether this person is
earning S$2,000 a month or S$200,000 a month, he/she is
just getting by and not getting ahead.

c. You spend less than you earn (eg. save 10% of your
earnings). As time goes by, this person will automatically
get richer and richer.

The question is which cashflow scenario do you want to
CHOOSE for yourself?

2. Money can work for you, if you become the "wise owner"
of money and make money work for you. (note: you're the
Master, money is the slave, while many people are guilty of
being slaves to money).

Money is just a tool. We should Love people, use money. The
sad thing is there are people who Love money and use people
instead.

3. Money will be safe and grow if you invest it wisely or
if you invest under the advice of people who are wise in
money. ie. investment knowledge is key to making money
grow. You can either acquire investment knowledge yourself
or you can invest money under the advice of people who have
investment knowledge.

4. Money will slip away from the man who invests it in
businesses or investments with which he is not familiar
with. You should ask the opinion of those who are wise in
money, they might be able to offer you information or
advice that can prevent you from losing money.

5. Money flees the man who falls into scams created by
tricksters and conmen, who promise "impossible earnings".
One common weakness of human beings is "greed". Greed can
make a person who is usually alert and smart "stupid".
Greed can blind a man and is the main reason why financial
scams continue to exist whether in ancient times or in the
modern day.

Thus, if you abide by the 5 laws of money, you will
definitely get ahead financially and be able to accumulate
wealth.

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Dennis has 15 years of bank lending experience. He founded
http://www.HousingLoanSG.com - a Leading Mortgage
Consultancy Portal in Singapore. He is often quoted in
newspapers for comments on Housing Loans. Please send your
comments to dennis@housingloansg.com or call him at +65
6737 8801