4 Money Tips from 4 Personal Finance Legends

If you’re struggling to maintain your finances, these four personal finance experts share some general principles that can help.

The “4 Money Tips from 4 Personal Finance Legends” is a blog post that includes 4 money tips from 4 personal finance legends. The information in the article will help you to make more money. Read more in detail here: best financial books.

Brandon Krieg contributed this guest article as an editor’s note.

So you’re a tough, macho individual. You can deadlift 500 pounds, change your own oil, and shave with a straight razor. Great! You can’t be a genuine stud, though, unless you have great financial abilities.

Many individuals categorize financial goals as “something I’ll deal about later.” For others, the procedure seems to be too difficult. Others find the prospect of combing through the mass of books, blogs, and viewpoints daunting. After all, with so many “experts” in the field, how can you tell the wheat from the chaff?

Fortunately, laying a solid financial foundation can be accomplished in four easy stages. While the path to riches is lengthy, there are a few crucial steps you can do right now to get started. You don’t have to take my word for it, either! Instead, you may learn from John D. Rockefeller, George Clason, Dave Ramsey, and Robert Kiyosaki, four of the most well-known figures in finance.

You’ll discover four of their finest money-management suggestions below; by following these guidelines, you, too, may become a money master.

#1. Use your money wisely and give every dollar a purpose (John D. Rockefeller)

Let’s begin with the fundamentals. Before you can decide where to put your money, you must first figure out where you are. No one exhibited this more than John D. Rockefeller, who rose from poor origins to become the world’s wealthiest man.

Rockefeller carried a tiny ledger with him at all times since he was a child. He kept track of every penny he earned, spent, contributed, and invested. Bookkeeping became a way of life for him, and he enjoyed poring over financial records even after he had amassed a fortune. From a lecture made at the Fifth Avenue Baptist Church, in his own words:

“Now I’ll leave you with this piece of advice. As I did, keep a little ledger. Make a list of everything you get, and don’t be afraid to include what you give away. Make sure you give it away in a way that your father or mother can browse through your book and see exactly what you accomplished with your money. It will assist you in saving money, which is something you should do.”

It all begins with your budget. Budgeting is a tool to help you gain self-mastery, not a tedious duty. It becomes a proclamation of your priorities rather than a simple accounting of inputs and results.

How do you get started budgeting in a long-term manner? To begin, make a detailed record of where your money is presently going. The simplest technique is to review your bank and credit card accounts and keep track of how much money you have spent in the previous three months. This is the only method to assess your shopping habits in a realistic manner.

This might be uncomfortable and humiliating, depending on your behaviors. And if you’re doing it with your significant other, you could discover some surprises. It is, nonetheless, critical to your future success.

The next step is to establish your priorities. Your prior choices have no bearing on your future choices. You can, in fact, spend your money in a variety of ways.

What are the things that are most important to you? Do you want to put money aside for a better home? Do you want to go on a fantastic vacation? How about addressing your student loan debt? It’s all up to you. The goal is to make thoughtful decisions and actions. Working within a budget gives you control over your finances and helps you to shape your future in the way you choose.

Thankfully, you don’t have to use a little notepad as Rockefeller did (unless you want to!). There are several fantastic websites and applications that may make this process lot simpler and help you think about money in new ways. You Need a Budget is a terrific program that my wife and I utilize. Mint.com is used by others, and it works effectively for them. A budget may improve your life, whether you use a notepad, a smartphone, or a system of envelopes.

#2. Take care of yourself first (George S. Clason)

Now that you have a solid budget to guide you toward your objectives, it’s time to move on to the next step: improving your capacity to achieve those objectives. We’ll turn to someone most people haven’t heard of for that. George Clason was a soldier, author, and businessman who is most known for his parables about saving and acquiring money. You’ve undoubtedly heard of his most famous book, The Richest Man in Babylon, even if you don’t know his name.

The book, which was first published in 1926, is full with nuggets of wisdom. Its most renowned dictum, though, is simple: pay yourself first. Instead of paraphrasing, let us go straight to the source:

“Now I’ll tell thee the first solution I discovered for a dwindling pocketbook. Follow my instructions to the letter… Take out just nine coins from your bag for every 10 coins you have. Thy purse will immediately begin to fill up, and the increased weight will feel wonderful in thy grasp and offer thy spirit happiness.

Don’t dismiss what I’m saying because it’s simple. The truth is always straightforward. I promised to tell thee how I made my money. This was the start of my journey. I, too, carried a little pocketbook that I loathed since it had nothing that would fulfill my wants. But as I started taking nine bits out of my bag and putting them back in, it began to become fat. “Thine will, too.”

Isn’t it straightforward? Yes, it is. It also seems to be impossible. Have you ever put aside the first 10% of your money without touching it? There’s no way. The electricity bills are piling up, the rent is due, and the internet isn’t free. After your basic requirements have been addressed, there are lattes to drink, movies to watch, and new phones to purchase.

While there are exceptions, this holds true for people of all economic levels. When you live on 90% of your wage, your level of life will be strikingly comparable, and you will finally have the financial resources to pursue your other objectives. Do you have any doubts? Conduct an experiment and put it to the test for three months.

Modern tools may once again assist you in your noble mission. Set up transfer rules with your bank so that the money is moved to a less accessible place automatically. Alternatively, utilize one of the budgeting tools listed above to assign at least 10% of your gross revenue to a separate category right away. While the first few months may be difficult, you will see a good difference in your accounts almost immediately.

#3. Strive to live within your means (Dave Ramsey)

Now that you’ve established a budget and saved the first 10% of your income, it’s time to decide how you’ll spend the remainder. Let’s turn to a modern-day financial guru for suggestions on how to spend the remaining funds: Dave Ramsey.

Ramsey, like the rest of the people on this list, supports certain views that I disagree with (or follow). He is, nevertheless, a trailblazer when it comes to supporting modest living. From his book The Money Answer Book, here’s a taste of his wisdom:

“We live amid a group of individuals who are badly in debt and have no money saved as a result of being duped by their emotions. People have been duped into thinking that pleasure would come with the next purchase, much like heroin addicts. You could believe I’m talking about someone else, but I’m not. It’s about you that I’m writing. I know because I have the same sickness – but I’m getting better, and so are many of you. The human soul was not designed to find peace, satisfaction, or fulfillment by accumulating more possessions.”

Doesn’t it pierce the heart?

Unfortunately, we’ve been sold to since we were born. Happiness is something that can be bought, as commercials, billboards, and pop culture have repeatedly informed us. But you know the truth deep within. Long-term happiness cannot and will not be found in a new vehicle, a larger home, or a new iPhone.

We may choose to live more frugally and be happy as a consequence of altering our thinking. If driving a ten-year-old automobile saves you hundreds of dollars each month, it’s definitely worth it. It’s a worthwhile exchange if you pick a smaller house but don’t break out in cold sweats thinking about your mortgage payment. You’ve made a great decision if no one notices your new mobile phone but you have enough money to go on your ideal trip.

Think about where your money goes and be frugal. It’s important to remember that spending money is far simpler than earning it.

#4. Recognize the Difference Between a Liability and an Asset (Robert Kiyosaki)

If you’re following along and putting these suggestions into practice, you’ll be well on your way to being ahead of 90% of the population. This last key is for those who desire a little bit more. Perhaps you want to retire early or work full-time for a charity. Perhaps you want to relieve your children of the burden of college debt, or you want to supplement your income.

Smart budgeting, steady saving, and inexpensive decisions may help you achieve those objectives. However, if you want to become affluent, Robert Kiyosaki of Rich Dad Poor Dad fame advocates taking one extra step:

“You must be able to distinguish between an asset and a liability, and you must purchase assets.” This is all you need to know if you want to be wealthy. It is the first rule. It is the only guideline. This rule may seem to be outrageously easy, yet most people are unaware of its significance. The majority of individuals have financial problems because they don’t understand the distinction between an asset and a liability.”

Keep your day job, says Kiyosaki, and strive hard to be a wonderful employee. He does, however, advocate for “minding your own business,” or taking charge of one’s own financial destiny. Rather of entrusting your retirement to your employer, a financial adviser, or the government, he advises purchasing assets and taking care of yourself.

So, what does he mean when he says “asset” and “liability”? He avoids complicated vocabulary and sophisticated accounting processes by keeping things simple:

“An asset is anything that allows me to make money.” A burden is something that drains my bank account.”

As a result, assets include income-producing real estate, equities, bonds, royalties, and mutual funds. These items are valuable, provide revenue, or increase in value (and have buyers that want them).

Other assets, such as your own residence, automobile, large-screen television, yacht, and school debts, are liabilities since they deplete your financial resources.

These aren’t the definitions that rigid accounting standards would use. They do, however, assist to demystify a complicated issue and serve as useful guideposts for your purchase selections.

It’s critical to strike the correct balance. What do you do with a dollar when it comes in? Do you have the self-discipline to make the most of your money? Will you let it dig you further into your hole, or will you allow it dig you deeper? That choice is entirely yours to make, and it will have a significant impact on your financial future.

Conclusion

These are four of the greatest financial advice from four of the most well-known financial gurus in recent memory. It’s amazing how much of a difference there is between something basic and something easy. At its core, each of these keys is straightforward. Make a financial plan. First and foremost, pay yourself. Keep your spending to a minimum. Rather of goods that take money out of your wallet, buy things that put money in your pocket.

None of these keys, however, are simple. They demand the capacity to make difficult decisions on a daily basis and the ability to defer gratification. Now it’s up to you to make a decision. It’s possible for you to become a financial stud. Will you be the one to make it happen?

Brandon Krieg is a West Michigan-based real estate investor and entrepreneur. He is happily married with two wonderful children and enjoys reading, sailing, traveling, and sports. Please contact us or visit www.TheHoneybeeHomes.com for additional information.

Frequently Asked Questions

What are the best practices and tips for personal finance?

A: The best practice to use for personal finance is that you should always try to put away as much money as possible before anything else. You can set up an automatic savings plan by cutting back on spending, which will help pay off your debts and build a financial cushion of cash in the bank account.

What is the number one rule of personal finance?

A: In order to have a successful personal finance, it is important that you stay on top of your bills. This will enable you to avoid costly penalties such as late fees and interest charges when they arise.