This is a visual book summary of The Five Lessons A Millionaire Taught Me by Richard Paul Evans. This book teaches the basics of wealth management in 5 short but practical lessons to set the reader on the path to wealth and financial independence.
Visual Book Summary OF The Five Lessons A Millionaire Taught Me by Richard Paul Evans (Infographic)
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Here are some of my insights from the infographic visual book summary of The Five Lessons A Millionaire Taught Me by Richard Paul Evans:
1. Decide To Be Wealthy
Consider these truths about money:
- Life is NOT about money. It is about God, family, relationships, growth and learning.
- Money is a powerful ally that provides a good life for loved ones and allows us to support worthy causes.
- Debt and poverty give rise to horrific problems.
- Wealth ≠ Extravagance
Do not always believe how media portrays wealth. - There is POWER in COMMITMENT so decide to become wealthy!
- Choice is the start of a journey. To choose the path is to choose the destination.
2. Take Responsibility For Your Money
Money is not mystical. Control your money or your money will control you.
Take control of your money by taking responsibility for it.
Know the following four facts about your money:
- How much money you have? Track your net worth every 30 days.
- Where does your money come from? Know all the sources of your income.
- Where is your money going? Know and track your expenditures.
- What is your money doing? Know the ways in which your money is working for you.
3. Keep A Portion Of Everything You Earn
How much should you keep?
Keep at least 10% of your income.
If you have debt then use 10% to pay off debt and 10% to build wealth. After debt is paid, funnel that 10% towards wealth building.
Remember the power of compound interest and the need to build a nest egg that has diverse investment instruments.
4. Win In The MArgins
Reduce expenses, increase income!
Basically, there are two ways to win in the margins:
- Look for ways to increase income: Always be on a lookout for ways to increase your income apart from your salary.
If you just increase your income by 10% and put the increase into the next egg, your money will literally double! - Develop “Millionaire Mentality ” to increase savings effortlessly:
- Carefully consider each expenditure
- Delay gratification
- Know that spending ≠ happiness
- Protect the nest egg
5. Give Back
Giving expands life and makes it warm.
- Don’t wait to accumulate wealth before giving. Give as you get.
- Tithe 10% of your income.
- Sharing makes you realise how blessed you are.
- Share NOT just wealth but knowledge too. Share the concepts of this book and enrich another person.
What Next?
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