Don't Lose Money
Mike about Money | Don't Lose Money
It's been said it's not how much we make but how much we keep that will determine if and when we'll become wealthy. One key is to never, LOSE money. This is billionaire Warren Buffett's #1 rule. His second rule for becoming wealthy is "Never forget Rule #1."
The more money you lose due to financial mistakes, the harder it will be and the longer it will take to become debt free and grow your income to a sizable amount.
This week, Personal Success and Wealth Building expert, Brian Tracy, gives us the keys to Not Losing Money. You will find his teaching invaluable as you work each day to improve your family's financial future.
Don't Lose Money!
by Brian Tracy
Throughout the history of American enterprise, you've heard the words, "work hard and save your money." Work hard and save your money. It is the oldest rule for success in America. It's so important, as a matter of fact, that W. Clement Stone once said, "if you cannot save money, then the seeds of greatness are not in you."
Saving Is a Discipline
Why is it that saving money is so important? Because saving money is a discipline and any discipline affects all other disciplines in your life. If you do not have the discipline to refrain from spending all the money that you earn, then you are not qualified to become wealthy and if you do become wealthy, you'll not be capable of holding on to it.
The Law of Attraction
A principle with regard to saving your money is the law of attraction. The law of attraction is activated by saved money. Even one dollar saved will start to attract more money. Here's what I suggest that you do. If you're really serious about your future, go down and open a savings account. Put as much money as you can into it, even if it's only ten dollars. And then begin to collect little bits of money, and every week go down and put something into that account.
Attract More Money Into Your Life
You will find that the more you put in that account, the more you will attract from sources that you cannot now predict. But if you do not begin the savings process, if you don't begin putting something away towards your financial independence, then nothing will happen to you. The law of attraction just simply won't work.
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Invest Your Money Conservatively
Once you begin to accumulate money, here's another rule. Invest the money conservatively. Marvin Davis, self-made billionaire, was asked by Forbes Magazine, "How do you account for your financial success?" And he said, "Well, I have two rules for financial investing." He said, "Rule number one is, don't lose money." He said, whenever I'm tempted, whenever I see an opportunity to invest where there's a possibility I could lose it all, I just simply refrain from putting the money in. Rule number two is, whenever I get tempted, I refer back to rule number one. Don't lose money.
Get Rich Slowly
George Classon says in The Richest Man In Babylon, that the key is to accumulate your funds and then invest them very conservatively. One of the characteristics of self-made millionaires, one of the characteristics of old money in America is that it's very cautiously, conservatively and prudently invested.
Don't try to get rich quickly. Concentrate rather on getting rich slowly. If all you do is save ten percent of your earnings, put it away, and let it accumulate at compound interest, that alone will make you wealthy.
Here are two things you can do to apply these lessons to your financial life:
1. Open a separate savings and investing account today. From this day forward, put every single dollar you can spare into this account and resolve to never touch it or spend it for any reason.
2. Whenever you consider any investment of your savings, remember the rule, "Don't lose money!" It is better to keep the money working at a low rate of interest than to take the chance of losing it. Be careful. A fool and his money are soon parted.
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