10 Principles of Financial Independence
1. Save consistently by living on less than you earn.
2. Study the investment methods and strategies of successful people, and seek advice only from those who are competent through their own achievements to give it.
3. Learn to apply the principles of compounding, discounting and leveraging.
4. Never bet on a loser because you think its luck is about to change.
5. Think twice before investing in anything that eats. Those deals are much easier to get into than out of. That also includes places where others eat.
6. Don’t invest in anything you can’t explain to your spouse. (John Schaub)
7. Reinvest all proceeds until financial independence is achieved.
8. Never get involved in anything that promises quick riches. Trying to get rich quick is another form of gambling.
9. Be constantly on guard against every form of greed. No matter how much you have, wealth never brings lasting happiness.
10. GET STARTED! A good plan today is better than a perfect plan tomorrow. Unless you were born wealthy, chances are you will have to sacrifice financially during part of your life. It is much better if that happens by choice when you are young than by force when you are too old to recover. The decision is yours.
I hear all of the time, "I don't have any money to invest." You have time, knowledge, desire to learn and can offer those with money but can't do the work a way out. i have my granddaughter who just graduated to become a barber, investing in small deals and she is making 20-30% returns and is just setting up an IRA. She received enough money to pay off her student loans which have a 5.5% rate and now the money she invested (instead of paying off her loans) has grown to 120% of the amount she started with and her investments are making her payments on the student loans. One year!!!
None of this is original thinking but has been plagiarized from different sources, but it is very applicable.
I would like to know what you can add to the list and let's see where it goes.
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