The main secret of wealth

Let's first define some terms for what would later we were talking the same language. And so rich - it's financial position at which our revenues exceed our costs. The question is: "If the revenue costs more, so much money should be?" In general, no. If one person earns $ 200 a month, and spends 150, it is a rich man because he can on a monthly basis 25% of their income to defer to their wealth. And if the other - earning $ 2,500 a month and spend 2700, then he, in fact, poor. Because, just likethe other poor, he looks every month, which occupy 200. Apparently, to achieve wealth is fundamental that no amount of money received each month, and the ability to dispose of them. In fact only depends on us how much of their earnings we will spend, but how many put off. And so, the wealth does not depend on the amount of money we receive, but on the ability to dispose of them. In fact, this is the secret of wealth. Let's use this wonderful news and see how it can be applied in their lives. One author writes that, as a manager, he earned 3000 dollars a month and still mired in debt. Naterpevshis trouble from this way of life (a way to manage money), he took a radical decision: "To postpone 50% of their monthly income!" And after 7 years he became a millionaire. He became a millionaire, not because it has dramatically increased revenues and not because someone paid off for him his debts, but only because it radically changed their priorities and habits concerning money.

There is another interesting idea that we opened the Western millionaires' wealth ratio is measured in months, you can live on that you may have, savings, without changing their lifestyle, if you suddenly run out of work or retire. " The formula for computing is very simple. Then, you divide the amount of your available savings in the amount of your monthly expenses.

For example. The entrepreneur has accumulated $ 25 000, his monthly expenses amount to 1000 dollars. By dividing the amount of savings - 25 000 1000 - his monthly expenses, we find that the ratio of his wealth is equal to 25 months. That is, ceasing to work, the employer will be able to live without changing their traditional way of life 25 months.

Another example. The businessman amassed $ 100 000, and its monthly cost is $ 10 000. Dividing the amount of savings Businessman 100 000 10 000 - his monthly expenses, we find that the ratio of his wealth is equal to 10 months. That is, ceasing to work, the businessman will be able to survive on this money without changing their traditional way of life just 10 months.

So who are rich businessman or entrepreneur? Apparently, the entrepreneur, while 100 thousand, collected businessman who look much more spectacular than 25,000 gained an entrepreneur.

Another idea, which has a direct relation to wealth. Wealth can be true, and may be demonstrative (sham).

True wealth - is when the ratio of wealth allows you to comfortably exist for decades after the cessation of work.

Ostentatious wealth - is when people surround themselves with the attributes of wealth (luxury cars, luxury homes, exclusive clothes, luxury holidays, etc.) while not having a soul, a dollar, and often only the debts and credits.

And so, you can be poor or rich, and having $ 100 and $ 10 000.

If a person earns $ 10,000 a month and spends $ 10 100, it is essentially a poor man, but lives outwardly rich.

If a person earns in a month $ 10 000, and spends $ 100, then he, in fact, a very rich man, though not rich at all living.

Our financial situation does not depend on our income - it depends on how wisely we spend our money. It remains to apply this knowledge in its financial practices. In future articles we will talk about the other secrets of wealth.