Rules - Three Habits for Financial Independence

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 Rules guide the acquisition of money. These rules will work for anyone.

  • Rule No. 1: Live on less than you earn.

If you consistently keep more than you spend, you’ll have a surplus of money. Simple, right?

  • Rule No. 2: Maximize your ability to earn from your current job.

Your single-biggest source of income is your current job. Most jobs will pay you more money as your skill rises.

So the quickest way to make more money is to improve your skills. Put yourself on a skill development track that will make you world-class at your job.

If you don’t know how to do this… no problem. Here’s what you do…

Offer to take the most successful person at your company out to lunch. You’ll ask this person about their work habits. Acknowledge their success and ask them, “What do you do that’s different from everyone else?”

Don’t interrupt them. Just listen and take notes. By the end of the lunch, you’ll have the beginning of a blueprint you can use to become world-class at your job.

If your current employer doesn’t recognize your improved performance, that’s okay… Find another that will. Be sure to negotiate for more money. And never leave a job without having another one lined up first.

  • Rule No. 3: Create multiple streams of income.

If you’ve nailed the first two rules, No. 3 is how you build your wealth.

This is where you invest in low-risk, income-producing stocks, real estate, or private businesses. Additionally, this is where you can incorporate a “side hustle” for extra income.

Side hustles include – but aren’t limited to – Uber driving, Postmates/Grubhub deliveries, selling crafts on Etsy… buying and selling on eBay, etc…

You just keep reinvesting all your surplus capital into low-risk, income-producing investments, and lo and behold, in about seven years, you’ll be rich.

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