Top 7 Basic Rules for Financial Prosperity

The level of your financial prosperity influences your level of well-being. The result of an experiment performed on wealthy people says that your happiness level is strongly correlated with your money until you are able to generate 5000 euros a month. Above this figure, your happiness does not depend on your money anymore, if you keep this flow steady.

But how do you generate 5000 euros a month and even generate more, so that you can fully focus on other sections of your life?

Lack of financial education is the main reason why people don’t have money. You will learn all your life how to reach financial success or financial freedom, but there are top 7 basic rules for financial prosperity. Your wealth depends on, you, actually applying, in reality, the below rules. The rules are written according to their importance, from first place to last place.


Will Smith 1. Pay yourself first for financial prosperity

Pay Yourself First is the central message of the book “The Richest Man in Babylon” by George Samuel Clason. This money rule is written in only three words (pay, yourself, first), but not many people understand what it actually means and why you should respect this rule. You will better understand if you say it like this: Pay Your Future Self First. When you pay, in the present, to your future self, you are actually paying your present self, because very soon, your future self will become your present self. Therefore, you are actually paying to have money in the present. Paying Yourself First means putting at least 10% – 15% from every income that you receive, in savings.

Other very important reasons to Pay Yourself First:

  • Pay yourself first so that you have money to invest. You cannot invest if you do not have money to invest. See more details about how to invest at section 4 below.
  • Pay yourself first to obtain mental relief relating to having/not having money to survive, for yourself and your family.

Robert Kiyosaki 2. Cost monitoring for financial prosperity

Keep track of all your expenses. At present, the best and simple way to do this is by writing in an excel all your expenses and then putting this excel in onedrive. In this way you will have the excel everywhere you are (mainly either at work or at home) so you can quickly update it.


3. Tithing for financial prosperity

Tithing is giving away 10% of the money that you receive. This rule is again understood poorly. Three aspects will clarify this:

  • Give money to receive money. You get what you give. Give presents, receive presents. Give products, receive products. Give services, receive services. Give money, receive money.
  • 10% is not too much. If you feel 10% out of 100 $ is too much, then you will feel 10% out of 1000000 $ to be enormous. You need to train yourself to feel ease to just give money and also never see how that money is spent so that you receive with ease money and nobody should be concerned how you spend it.
  • Give the money without emotion. You give the money with emotions, you will receive money with emotions. Therefore, you make the process harder, not simpler. Money is simple: give money and receive money. It is a simple flow. Put emotion in it (even positive) and you will just stiff the process.

Warren Buffet4. Invest for financial prosperity

Learn to invest and actually, invest. What investments should you have:

  • Have investments in cash in the long term as bank deposits, always. Cash is a property in itself.
  • Have investments with low risk (like bonds and state certificates) in the long term.
  • Have a property and rent it (like an apartment).
  • Start a business: make a website, make an online store, write a book, produce services, sell something.
  • House. If you buy a house to live in it, that is not an investment. If you rent a room in your house then the house becomes an investment. If you rent the entire house then the house becomes an investment.
  • Car. If you buy a car for fun or for going from work back to your house, this is not an investment. When you buy a car for your business and you notice an increase in your revenues, then that is an investment. If you buy a car for your business, but that car is for an employee that does not bring you more money than that is a cost, not an investment.
  • Yourself. If you invest in yourself, but you do not make more money, then you are not investing in yourself, you are just consuming.

In investments is good to learn all that you can about compounding effect. This is related to how money grow when you invest on the long term. Besides this, there are two very important rules to consider in investments:

1. An investment is something that makes money to you

Very few people actually understand this. People say: the best investment that I could ever make is to myself. Then they go and buy all kind of stuff for themselves like clothes, subscriptions to gym, food, training etc. But they don’t link it with the extra money that they gain following all these expenses. If you say you invest in yourself, but you do not produce more money (or you do not produce money at all), then you are not investing in yourself. When you pay for a training (an online course lets say) and in the next year your income is not growing, then you did not invest in yourself. That training will always remain a cost for you, it is not an investment. Before you make an investment, you need to be able to say approximately how much increase in your cash you expect this to bring you. Otherwise, it is not an investment, it is only a normal cost.

2. In the medium to high-risk investments always only invest the money you are willing to loose

Never invest the money that you are not willing to loose when dealing with investments that are evaluated as having medium to high risk. Manage the risk and keep it as safe as you can keep it. Risk high only the money that you are clearly willing to remain without them 100%. If you have 2000 $ and you feel that you can not loose 1000 $ then do not invest 1000 $, or more. Invest less. Invest 100 $. If from 2000 $ you feel that you can only afford to 100% loose only 50 $ then invest only 50$. Then win in this investment of 50 $, by producing constantly 0.5 $ a month and you can consider that you realistically learned how to invest. Then you can invest more, but only if (again) you are willing to loose your next investment.


5. Net wealth monitoring for financial prosperity

Always keep track of your net wealth. Make a monthly computation (for example on 20th of every month) of your net wealth. Net wealth equals assets minus liabilities. To better understand net wealth consider the following formula: the current value of all things that you own (you need to check if you are able to sell your properties if there is a market for your items) minus all your debts.


6. Increase your revenues for financial prosperity

This rule is very important and very basic rule for financial prosperity but it’s not more important than the above rules. Because prosperity is the accumulation of wealth. Wealth is actually net wealth. Net wealth is not revenues (see above section 5). And new wealth is built in time. You should be able to accumulate wealth, this will make you have money. An increase in revenues, without the ability to accumulate wealth, will only make you have more costs.


7. Money mindset for financial prosperity

Money mindset refers to thoughts you have about money. So what do you think about money? Are those thoughts blocking or welcoming/allowing/creating money. First, you need to learn that you have blocks in welcoming abundance and you need to put an effort in releasing these blocks. Second, you need to think highly and wisely about money. You need to start saying to yourself affirmations such as: “My income is constantly increasing. I have a millionaire mind. I am one with an enormous amount of money. Money is fun. Money is easy. I always feel that money will come.” For you to understand these affirmations you need to start reading a lot about topics such as financial education, financial success, financial prosperity, financial abundance, financial prosperity, financial freedom, net wealth and many other related terms.

The most useful program for obtaining progress with your money is “The Spiritual Laws of Money” by T. Harv Eker.


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