Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

The 5 Rules For Making, Keeping and Growing Money

So you are like an accountant or something?

[milk spins and froths in a warming jug]

“So, what do you do?”

“I’m in finance.”

“Oh, so you are like an accountant or something?”

“Not exactly, I’m in investing.”

“Oh…”

“I know the accounting stuff, but that’s only part of what I do.”

“Oh, okay.”

[insert a lie, an awkward silence and burning milk]

“That sounds like… fun.”

Financial Mystery and Misery

That was the conversation I had with my barista. After more than six months of visiting the cafe early every morning, she finally made an attempt at small talk.

I don’t think she will try it again…

Because when most people talk to me about finance, particularly investing, they are either mystified or terrified of reliving a financial misery.

Taxes, you can’t avoid.

But investing?

Why risk it.

Franky, I don’t blame anyone for thinking that way. Many experts only tell you what they want you to know. Then, they will bamboozle you with technical terms so they can justify their fees.

Plus, you’ve heard the horror stories, right? About the banks, dodgy planners, the GFC, the dot-com bust, 18% mortgages, and the 90’s recession.

Why risk it.

But what if I told you there are five sacred rules about finance that could guide you forever?

Would you pay attention?

That is:

  • No matter how many Bitcoins your brother-in-law trades.
  • No matter how much — or how little — you earn.
  • No ifs, buts, or maybes.

Would you pay attention?

The 5 Rules For Making, Keeping and Growing Money

I won’t even try to take credit for these rules because they have been known and used for more than 100 years. Some say, more than 2,000 years.

I came across them in George S. Clason’s famous book, The Richest Man in Babylon,  one of the greatest personal finance books ever written. The Richest Man in Babylon was first published in the 1920’s but its lessons and stories date back thousands of years.

1. Save 10% of your wage no matter what.

Most people work for a living. Specifically, they work for money. Cold. Hard. Cash.

Yet it’s the ability to make money work for you which gets us ahead.

It doesn’t matter if you make $10,000 or $10 million. Paying yourself 10% of your salary allows you to…

2. Make your money work.

Once you have 10% put aside, what do you do?

You need to invest it for the long term.

Not a fool’s errand promising spectacular returns (cough, cough Bitcoin…).

Sensible investments.

3. Take advice from wiser people.

This rule reminds me of a quote: “He that is taught only by himself has a fool for a master” – Ben Jonson.

There are times when professional advice is a good idea, but always keep your wits about you and…

4. Be careful who you take advice from.

You have seen it before.

It is easier than you think to end up on a current affairs program after being caught up in a financial scandal.

Don’t invest in activities in which you are not familiar or with people who are not skilled with money.

“How do I know who is right for me?”

As far as I can tell, there is no set formula.

I first look at someone’s incentives. How does this person get paid? Are they incentivised to take money from me or make money for me?

Advice is only worth something if you can trust its source. And I’d take integrity before talent.

5. No explanation necessary:

“Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.” – George S. Clason

This is just as relevant today as it was thousands of years ago.

______________

 

Write down these rules and pin them up on your toilet door for all to see (when the door is closed!).

Cheers to your financial future!

Owen Raszkiewicz

 

Join my (free) newsletter to get my latest insights

Did you know it’s free to join The Rask Group’s Investor Club Newsletter? It’s a regular (usually weekly) news and educational update on financial markets, investing and unique strategies. Join today and get ready to laugh and learn.

Click here to join The Rask Group’s Investor Club Newsletter Today

 

Hey, you, read this disclaimer: This article contains information only. It is not financial advice. It is no substitute for trusted and licensed financial advice and should not be relied upon. By using our website you agree to our Code of EthicsDisclaimer & Terms of Use and Privacy Policy. Also, don’t forget, past performance is not a reliable indicator of future performance. 

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content