The secret to being rich – this is probably the most sought-after secret next to the secret to being happy. I got a pretty good idea of how to start the journey to richness through a parent workshop entitled “Financial Intelligence Quotient: a 21st Century Skill“. It was conducted by Ms. Rose Fres Fausto at the Kidzania SkyZone Parents’ Lounge.
The Three Basic Laws of Money
Pay yourself first
Most of us work very hard but fail to pay ourselves first after compensation from employment or business is received. This is said to be the biggest mistake as nothing is left after all payables have been taken cared of. The money we pay ourselves should go into a fund which we could use for our long-term goals. After all, life is not all about paying bills. It is also about enjoying its wonders, comfortable in the thought that you can actually afford it.
Get into a business you understand
Do not be lured into opening a business which you don’t understand, no matter how lucrative the income appears to be. Ignorance of the ins and outs of the business will force you to depend on others too much. It’s either other people get rich at your own expense or you end up with a closed business.
Make your gold work for you
Rose Fausto gives a sound advice in the matter of buying luxury: Buy it only if you can afford 10 of it. Why? Because that means you have enough money at your disposal that such purchase will not create a dent in your financial standing. She adds that we should save money and let them earn more for us through wise investments.
Not a Secret at All
If we think about it, these laws are not really secret. They have been there since time immemorial but most of us choose to look the other way. Today’s culture of instant gratification makes it very difficult to save and to forego unnecessary purchases.
Rose chose to retell the story of The Richest Man in Babylon through her book both for the young and not-so-young. This book, like the original, offers simple lessons in attaining financial freedom. What makes it so great is that it confirms that getting rich is not exactly rocket science nor unattainable.
Who doesn’t want to get rich? I believe everyone desires to attain a comfortable level of material wealth that will not let them be forever slaves to work and debt. It is never too late to start practicing what needs to be done to achieve it. Let us start with ourselves and our children while they are still forming their financial habits.