The Four Principles of Wealth

If you happen to visit this blog to look for ways to Financial Independence, allow me to share with you. Cheers!


Steps to Financial Independence or Freedom...


http://createwealth8888.blogspot.com/2009/04/four-financial-progressive-stages.html

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By Herbert Harris

1. The Earning Principle


All wealth is created in the mind. The earning principle covers the exchange of value required to create sufficient income to meet your needs.

2. The Spending Principle

The Spending principle covers the manner in which you spend, circulate, or otherwise dispose of your money.

3. The Saving Principle

The saving principle covers the accumulation of surplus - the difference between your income and expenses - from your income


4. The Investing Principle

The investing principle covers the allocation of surplus to increase your wealth and income.


Put it simply:

Spend less than you earn. Save what you do not spend. Invest a portion of what you save to help you to generate more.

Ask yourself the money question, "What is the best use of my money right now, in terms of my goals, vision and purpose?"

How to create wealth?

There are three basic ways to create wealth:

1. Wages and salaries

2. Income from a business

3. Income from investments

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Createweath8888's way:


1. Wages and salaries

Unless you are self-employed; otherwise, the day will come when your bosses will ask you to retire.

2. Income from a business

http://createwealth8888.blogspot.com/2009/10/good-part-time-business-to-own.html


3. Income from investments

If you have skills, knowledge and experience in investing, you will be able to generate income from investments long after you have retired or asked to retire.