Maximize Your Wealth Potential: 8 Rules for Financial Literacy Success

We are living in the global competitive era, where every individual is participating in a marathon race to become wealthier. But why only 2% of the population will be able to win the competition, while others simply find themselves out of the race? Well! To understand the process of becoming rich, it is necessary to understand the imaginary concepts of money and financial intelligence. Money is indeed powerful, but what really matters is understanding how it works. While money can come and go, having knowledge about how to manage it gives you control and helps you start building wealth. Learning about money takes effort, interest, and a strong desire to succeed. Without understanding how money works, it’s easy to lose it quickly. An old proverb states that “A fool and his money is one big party”.

The secret to financial freedom and building significant wealth lies in being able to convert regular earnings into passive or portfolio income. Ordinary income is money you work for and you get it simply by doing a job or investing in some dead assets, while passive/portfolio income is money that works for you as the intelligent investment on valuable assets that generates the automatic money to secure your future. Moreover, your financial future solely depends upon the knowledge of little mathematics/Accounting, laws, and taxes. Once you gain an idea of how things work, you will be able to get a lot from everything.

Here the question arises how do we know about the proper process or from where we can get the education of money making? The comprehensive answer lies in our 8 rules given below;

Rule # 1: Brain exercise to think creatively: The first rule is to exercise your brain to keep it stronger and get more money. As we know proper physical exercise increases our chances of health and keeps our body fit, proper mental exercise also increases our chances of wealth. Wealth can be defined as a person’s capacity to survive for a certain number of days into the future. It’s essentially asking: if I were to stop working today, how long could I continue to support myself?

Rule# 2: Differentiate assets from liabilities: Understanding the difference between assets and liabilities is crucial. Assets are resources that generate income, like valuable properties or reputable brands. Conversely, liabilities entail expenses, such as taxes or various expenditures. The wealthy prioritize investing in assets, while those with fewer resources often accumulate expenses. Meanwhile, the middle class sometimes mistakes liabilities for assets, and involve in the cycle of financial struggle.

Rule # 3: Cultivate a financial mindset: Begin focusing on minding your own business, while maintaining your daytime job, but shift your focus towards acquiring real assets instead of liabilities. Our most potent asset is our mind. When properly cultivated, it has the potential to generate substantial wealth. Your mind possesses remarkable capabilities; it can transform obstacles into opportunities and pave the way for financial success.

Rule# 4: Embrace failure as the part of success. People who avoid failure miss the opportunity for success. In traditional schools, mistakes are stigmatized as bad and punished for making them. However, human learning is inherently tied to trial and error; just as we learn to walk by stumbling, success in wealth-building similarly involves learning from mistakes. Many individuals shy away from financial success due to a fear of failure, yet true winners recognize that setbacks are an integral part of the journey and are unafraid to take risks.

Rule # 5: Recognize the true opportunities: Valuable opportunities aren’t always visible; they require a discerning mind to recognize them. Many people fail to accumulate wealth because they lack the financial training to identify opportunities. In the words of John D. Rockefeller, “I always tried to turn every disaster into an opportunity.”

Rule # 6:  Avoid over-specialization and learn various skills: It’s beneficial to know a little about a lot and have a broad understanding of various subjects rather than specializing in just one area. Specialization can sometimes limit our options and opportunities, leaving us trapped. The old proverb “Jack of all master of none” does not implicate in this digital era.

Rule # 7: Overcome Obstacles with Determination: Overcoming obstacles on your way to becoming wealthier. These obstacles are fear, cynicism, laziness, bad habits, and arrogance. Your task is simply to conquer these hurdles to become resilient in focus on the destination.

Rule # 8: Negotiation is the key to success: Finding a good deal, the right business, the right people, the right investors, or whatever is just like dating. Engage with a wide range of people, make offers, negotiate deals, and seize favorable opportunities to enhance your financial prospects. These are all parts of the process of almost everything in life.

So today is the best time to take action and build your tomorrow. Every day with every dollar, it’s 100% your decision to be rich, poor, or middle class. The successful future ahead will be determined by your choices taken today, and don’t wait for tomorrow.

Sheeba Shahzadi

The author is a psychologist, having keen interests in: psychology, spirituality, mental health and politics

• Sheeba Shahzadi

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