Back to Concepts Giving: teaches you to be generous. It teaches you that there is more to life than just accumulation. Start giving when the amounts are small. If you can't give a dime out of a dollar, you won't give a hundred thousand out of a million. Investing: This is money you use to buy, fix, or manufacture something to sell for a profit. This is the money that engages in commerce. "Wages make you a living; profits make you a fortune." Saving: This is your peace of mind. This is your winter fund. Poor people: Spend their money and save what's left. Rich people: Save their money and spend what's left.
Core Concept
Financial Independence
The Philosophy of Financial Independence
The secret to wealth is not just earning more; it is managing what you have.
The 70/30 Rule
After you pay your taxes, learn to live on 70% of your after-tax income. Then, allocate the remaining 30% as follows:
10% for Charity
10% for Capital Investment
10% for Savings
The Poor vs. The Rich
"To become financially independent you must turn part of your income into capital; turn capital into enterprise; turn enterprise into profit; turn profit into investment; and turn investment into financial independence." — Jim Rohn
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