3 Money Habits You NEED To Create Financial Security | 3 Laws Of Money | Money Habits Of The Rich

In this video I explain the top three money principles that YOU NEED TO KNOW when it comes to handling YOUR MONEY! These tips are the fundamental money rules that will help you achieve financial security and financial freedom and will show you how it's possible to grow your income and ACHIEVE YOUR FINANCIAL DREAMSs faster than you thought possible!

Feel free to jump to different sections of the video using these timestamps:

0:00 Introduction
0:43 Money Principle 1
3:21 Money Principle 2
6:09 Money Principle 3
7:59 Summary

As promised, here is the link to my video explaining the different income streams and how you can create more income for yourself: https://youtu.be/VhVl-cZSw0E

If you’re interested in checking out the gear I used to put this video together, here’s where you can find it:

Camera: https://amzn.to/2L4RO2T
Microphone: https://amzn.to/3bx4E57
Lighting: https://amzn.to/3rI2THK
MacBook: https://amzn.to/3pBbZ7j

MONEY PRINCIPLE #1 – LIVE BELOW YOUR MEANS

The importance of spending less than what you earn is vital. This fundamental principle is how people get rich and stay rich and why a lot of poorer people stay poor.

Spending less than what you earn means the difference is saved, and those savings can be used to generate wealth.

You also won’t worry so much about money as you'll be confident that you can pay the bills every month and cover any financial emergencies that come up.

Those who spend more than they earn end up with piles of bad debt which creates a lot of stress as they are left to work hard for a pay-check just to have the monthly income used to service the debt repayments.

Saving 5% to 10% of your pay-check is a great place to start. You won’t notice a difference in your lifestyle without it but you’ll thank yourself when you start seeing the savings build up!

When this money rule is ignored the results can be devastating. Look no further than famous actors or sports stars who have ultra-high incomes, but then go broke when they stop working.

This happens because they fail to realise that their income will one day stop and unless they have a strategy to replace it, they’ll quickly run out of money.

When you spend less than what you earn you have the opportunity to invest the difference and have that money create more money for you, which in turn can be invested to create even more money!

MONEY PRINCIPLE #2 – INVEST EARLY

The earlier you start, the more you’ll finish with and this is especially important when it comes to longer-term retirement savings.

Saving for retirement means saving a huge amount of money that will be enough to provide you with an income for the remainder of your life when you stop working

If you retire at 65, statistics tell us that you can expect your retirement to last on average around 20 years. Hopefully it’s a lot longer, but this tells us that as a minimum you need to have enough money in your retirement fund to cover 20 years’ worth of living costs.

Fortunately, by saving consistently from as early on as you can, the whole process can be made far less stressful than it sounds!

Compound interest really comes in to play over long periods of time and saving consistently from as early on as possible gives your savings the time and opportunity to multiply by taking advantage of compounding.

It's really important to start as soon as possible with what you have and let compound interest work its magic for you. When you reach retirement, you’ll thank your younger self for building up enough money to ensure that you can enjoy a comfortable life without needing another pay-check!

MONEY PRINCIPLE #3 - EXPAND YOUR MEANS

In Money Principle #1 I emphasized the importance of living below your means, but that doesn't mean that you shouldn't be pushing to expand those means so that you can improve the quality of your lifestyle and increase the speed at which your wealth can grow.

For example, if you earn £2,000 per month and all of your expenses and costs are covered within that amount, how can you earn an extra £500 or £1000 a month and what could that sort of extra money do for you

This money would be over and above what you are currently earning so once you have paid taxes on it, the entire amount can be put to work for you so that it can earn you even more money.

There are ways that you can create passive income streams that earn money for you every month without you needing to continually invest your time into them, or if you prefer you could simply make yourself more valuable to your employer through gaining qualifications that will enable you to earn a higher wage.

I really hope you found this video helpful, and if you did please be sure to give it a like and subscribe to the channel for more videos! Thanks so much for watching!!

*I may earn a referral bonus or affiliate commission through some of the links that appear in this video description.

Видео 3 Money Habits You NEED To Create Financial Security | 3 Laws Of Money | Money Habits Of The Rich канала Ryan Gibson