The 4 Irrefutable Laws Of Money

Did you know that most people find the world of finance and money complicated and confusing? This is because they get too caught up in all the noise and fads and they never take the time to properly understand the rules of the money game.

Here are the 4 irrefutable laws of money. They are simple, time-tested and proven.

As simple as they are, most people will breach some or all of them.

1. Spend less than you earn - if you spend all that you earn, or worse spend more than you earn, you have a problem.

2. Pay yourself first - always put a portion of your earnings aside for your future, before you pay anyone else. Why? Because after you have paid everyone else (bills, groceries, mortgage etc), you will rarely be left with anything to put aside for your future.

3. Protect your family, yourself and your assets - understand all your financial risks, including investment risks, protect, spread or mitigate those risks, and as you build your wealth, keep protecting and preserving what you have.

4. Make your money work for you - invest in high quality assets that have intrinsic value, investments that have a long term track record, are based on proven fundamentals and have potential for growth and income. Understand the difference between speculating and investing. Never speculate.

Understand the difference between savings and investing. Save for 3-6 months of income and anything you don't need for at least 5 years, consider investing in high quality diversified investments that meet the above criteria.

Your friend

- Ron Malhotra