05 Shocking Money Secrets From 50 Finance Books
Hello Hiveans!
Financial intelligence was the ability to control cash flow, and that’s what they didn’t teach you at school. Imagine finding secret tricks that helped your money grow faster and even allowed you to leave your 9-to-5 job. Instead of sticking to the usual routine, you could discover clever ways to make your money work for you, and eventually, you might not have needed a regular job anymore. All you needed were growth hacks that could change the way you thought about money and work. In this post, I’ll reveal 10 shocking money secrets from 50 finance books.
So, let's get started.......
Number one: How we used money
Spending, saving, and investing were the three ways we used our money. Spending too much could be an issue because if we spent more money than we had, it might lead to problems. Saving too much might not have been the best idea either. If you saved a lot and didn’t do anything with that money, its value might have decreased over time because of inflation. Inflation is when the prices of things go up, so the money you saved might not buy as much as in the future. Investing required careful thought. If you invested in the wrong things, you might have lost money. So it was important to spend wisely, save for the future, but also consider investing as a way to make your money grow. Balancing these three aspects helped manage money well and secure a better financial future.
Number two: Invest in assets
Investing in assets like real estate for rentals, stocks, bonds, and intellectual property was a good strategy for building financial freedom. Investing in real estate meant buying property like houses or apartments. If you bought a property and rented it out to others, you could earn money regularly. Real estate could be a good long-term investment because property values could increase over time. On the other hand, stocks represented ownership in a company. When you bought stocks, you became a shareholder. If the company did well, the value of your stocks could go up. However, stocks could also be risky because if the company performed poorly, you might have lost money. It was important to research and choose companies wisely. Bonds were like loans you gave to companies or governments. In return, they paid you interest over time. Bonds were generally considered safer than stocks, but the returns might have been lower. They were a good option for those looking for more stability in their investment portfolio. Investing in intellectual property involved creating or acquiring rights to ideas, inventions, or creative works. This could include patents, trademarks, copyrights, or licensing. For example, if you created a popular app, book, or invention, you could earn money through its use or by selling the rights. Each type of asset had its risks and rewards. Diversifying or spreading your investment across different types of assets could help manage risk.
Number three: Don’t live below your means
Robert Kiyosaki’s approach in his book “Second Chance” challenged the traditional advice of living below your means. Rather than solely focusing on cutting costs and sacrificing things you enjoy, he advocated for earning more as a means to afford the lifestyle you desire. Kiyosaki argued that constantly cutting costs could be demotivating and might not lead to long-term financial success. Instead, he suggested focusing your time and energy on finding ways to increase your income. By earning money, you could avoid the need for constant sacrifices and have the financial means to enjoy the things you want. This way of thinking said it was important to grow your money skills, like starting a business, investing, or finding ways to make more money, instead of just being careful with spending. You could actively find ways to earn more, helping you reach your money goals and have a more satisfying life.
Number four: Know how money works
Before you set out to win with money, you needed to know the rules. In the world of money, certain principles and guidelines could affect your financial journey. Understanding these rules was like having a guide to help you figure out how to manage your money better. Money wasn’t just about earning and spending; it had its own set of rules. It wasn’t just about having a pile of cash; it was about making that money work for you. Knowing how money operated involved understanding terms like budgeting, investing, saving, and managing debt. You needed to understand budgeting to ensure that your money was allocated wisely, preventing overspending and promoting financial discipline. Similarly, money had the potential to grow over time if invested wisely. You needed a safety net that provided financial security. However, simply stashing money under your mattress might not have been the best strategy. Learning how to save effectively, perhaps through interest-earning accounts, ensured your money retained its value over time. Not all debt was bad, but it was essential to manage it wisely. High debt could accumulate quickly and become a burden. Learning how to use credit responsibly and pay off debt strategically was part of the money game. Understanding all these terms was key to winning in the long run.
Number five: Set ambitious goals
When it came to achieving success, thinking big and setting ambitious goals was important in achieving your dreams. Instead of settling for small, easily attainable goals, dream on a larger scale. Ambitious goals were not your everyday targets; they were the kind that made you go, “Can I do that?” These were objectives that might have made you a bit uncomfortable because they pushed you beyond your usual limits. Your comfort zone was where things felt familiar and easy. Setting ambitious goals meant stepping out of this cozy space. It might have been intimidating at first, but that discomfort was where real growth happened. Ambitious goals provided a clear vision for your future. They gave you something exciting to strive for. It was like having a North Star, a guiding light that kept you moving forward even when the journey got challenging.