The Basic Principles of Economic Solvency Part 2
Dear reader, this blog is a continuation of the previous blog “The Basic Principles of Economic Solvency Part 1” based on the book “The 47 Principles of Financial Solvency” by authors Chris Brady and Orrin Woodward.
Become a Transformational Reader
For most people, reading is an informative process. But to be solvent, you must adopt a different type of learning. Instead of just informational reading, you must become a transformational reader. You need to read each principle of solvency mentioned in this book to apply them. Understanding a principle is not enough; you must implement it in your daily life.
Principle #3: LIVE WITHIN YOUR MEANS. ALWAYS. NO EXCEPTIONS. PERIOD. GO BY A GOOD BUDGET. ALLOCATE A SMALL AMOUNT OF MONEY WITH YOUR SPOUSE FOR DISCRETIONARY USE EVERY MONTH AND DON’T ARGUE OVER INSIGNIFICANT THINGS.
Find out your net cash flow, the difference between your income and your expenses. If your expenses exceed your income, then you’re bankrupt. Now, once you have real data, determine an effective budget. Be realistic. Eliminate what you need to eliminate and plan to review the budget once a month, as each month is different.
Identify all your income, savings, and expenses, and determine what you’ll spend from your income before actually doing it. Become the master of your money and closely monitor every monetary transaction.
A wise mentor once advised a man about his financial problems, and the man said he couldn’t make or stick to a budget because it always led to fights with his wife. The mentor asked if he truly loved his wife. “Of course I do,” the man assured. “Then it’s time to fight,” the mentor asserted. “It’s worth having some fights, and it’s essential to have a real budget to succeed. Be loving, positive, and patient,” he told his pupil, “but craft a budget with your wife and stick to it. In the long run, it will save your relationship.”
Principle #7: USING YOUR TIME, MONEY, AND TALENTS TO GENUINELY HELP OTHERS WILL NATURALLY INCREASE YOUR HAPPINESS. SEEKING MONEY JUST FOR THE SAKE OF HAVING IT MAY OR MAY NOT INFLUENCE YOUR HAPPINESS, BUT SEEKING MONEY TO FULFILL YOUR PURPOSE AND HELP OTHERS WILL AUTOMATICALLY MAKE YOU HAPPIER.
When money enters your bank account, the power to share is immediately activated, putting you in an energy of abundance. Choosing to share that blessing with others not only amplifies the flow of abundant and positive energy in your life but also allows you to have a significant impact on the well-being of others. By choosing to partner with the family to benefit a specific civil organization, guild, or individuals, you’ll not only strengthen the connection with your loved ones but also contribute to building an environment of shared prosperity and solidarity.
Principle #9: SOLVENT PEOPLE ARE PASSIONATE READERS AND ALWAYS INVEST IN THEMSELVES BY EXPANDING THEIR EDUCATION, EXPERIENCE, SKILLS, KNOWLEDGE, AND LEADERSHIP ABILITIES, BOTH ECONOMIC AND LEADERSHIP.
Investing in yourself also means engaging in business projects and gaining leadership experience. If you have a job, it means doing the same as an internal entrepreneur: thinking like an entrepreneur, as a leader, and as an innovator in your work instead of just fitting into your job description. If you were an asset of your company that, according to all your knowledge, skills, studies, and experiences had a selling value, what would yours be?
Principle #12: DEDICATE YOURSELF TO SPECIALIZING IN WHAT YOU DO.
This is the highest level of investment in yourself, and it is the natural path to solvency.
Success is not as easy as winners make it seem because once they’ve dedicated the 10,000 hours, it wouldn’t seem like they’re doing much for the compensation they receive. But it’s also not as difficult as losers make it seem because they don’t do anything or give up after doing 2,000 to 5,000 hours of intense work instead of enduring until they’ve mastered their task.
It may interest you: The Basics of Economic Solvency Part 1.
Living by the principles of economic success in this book will help you increase your level of economic solvency. Develop a written plan to implement the principles covered in this chapter, list your priorities and commitments, and remember never to sideline them.
Your learning is as good as the real and lasting changes you implement. Make money your slave and not your master, dedicate time to mastering what you do well, and build a network of residual income.
