1. Reinvest Your Profits. When you first make money in the stock market, you may be tempted to spend it. Don’t, instead reinvest the profits. For instance if you are a beginner and you are selling cars, use 90% of your profits to buy other cars instead of buying new useless clothes.
2. Be Willing To Be Different. Don’t base your decisions upon what everyone is saying or doing. Instead of following the crowd, look for undervalued investments and you will end up vastly beating the market average every single year.
3. Never Suck Your Thumb (Unnecessary Sitting and Thinking). Gather in advance any information you need to make a decision and ask a friend or relative to make sure that you stick to a deadline.
4. Spell out The Deal Before You Start. Your bargaining leverage is always greatest before you begin a job… that’s when you have something to offer that the other party wants. Always nail down the specifics of a deal in advance even with your friends and relatives.
5. Watch Small Expenses. You have to obsess over tiniest costs because they also get bigger as they accumulate every day.
6. Limit What You Borrow. Living on credit cards and loans won’t make you rich. Negotiate with creditors to pay what you can, then when you’re debt-free, work on saving some money that you can use to invest.
7. Be Persistent. With tenacity and ingenuity, you can win against a more established competitor.
8. Know When To Quit. Know when to walk away from a loss and don’t let anxiety fool you into trying again.
9. Assess The Risk. Asking yourself, “and then what?” can help you see all the possible consequences when you’re struggling to make a decision…and can guide you to the smartest choice.
10. Make A Budget. Create a monthly budget that covers all of your basic expenses and leaves a little bit of “fun” money aside. Do not go over this.
11. Cut Expenses. Look at the ways you frivolously spend money and remove everything. For example, avoid going to star bucks every morning. The 4dollars you spend on designer coffee every morning comes out to 20dollars a week, or 1,040 over the course of a year.
12. Invest Your Time. For example, you like having free time, so you give yourself a few hours a day to do nothing. But, what if you decided to invest those few hours into getting rich? You could work towards having those few hours into getting rich, you could work towards having 20years of free time (24 hours a day) with early retirement. What can you give up now in exchange for being rich later?!
13. Pay Your Self First. This means before you go and blow your pay check on a new pair of shoes or a golf club you don’t need, you could instead put money aside into an account that you don’t touch. Do this every time you get paid and watch your account grow.
14. Always Live With In Your Means. Would you rather rent an apartment or a cheaper rental? Should you have a roommate or not? Could you buy a used car instead of a new one? You should always have such questions in your head every time you set out to do something. They should help you make decisions that won’t strain you financially.
15. Know What Success Really Means. Don’t measure success by billion dollars despite your wealth. People get testimonial dinners and hospital wings named after them when the actual truth is that nobody in the world really loves them. You measure your success in life by how many of the people you want love you, actually do love you. That’s the ultimate test of how you’ve lived your life.
16. Stay Rich. It’s hard to get rich but it’s even harder to stay rich. Your wealth is always going to be affected by the market, and the market has it’s Ups and Downs. If you get too comfortable when times are good you’ll quickly drop back to square one when the market hits a slump. If your ROI (Return On Investment) goes up a percentage point, don’t spend the extra. Save it for when business is slow.