The Financial Mantras we are going to learn from now, will discuss some of the real life facts that we should consider on. These are not any written formulas that you need to learn in your financial education, it is all about the facts you need to know when it comes to your financial education.
Let's move on to our today's Financial Mantra #5 - Protect Your Money, Today we are going to learn about few things like:
- From Whom to Protect Your Money?
- Why to Protect Your Money?
- How to Protect Your Money?
The 5 B's From Whom To Protect Your Money
The 5 B's - for you, they may be one of your well wishers but they are the one's from whom you need to protect your money, and they are:
- Bureaucrats
- Bankers
- Brokers
- Businesses
- Barristers
Time to have a look who they actually are, Why and How to protect your money from them.
1. Bureaucrats
As we all know, We have a single largest and permanent expense attached to our income that is taxes, most of the part of income is already taken by the government bureaucrats, before people even get their income in their hands.
People's are taxed all the time whether they earn, they spend, they eat or they die, Government Bureaucrats taxes them every time.
People's are taxed all the time whether they earn, they spend, they eat or they die, Government Bureaucrats taxes them every time.
Why To Protect Your Money?
Off course you are not meant to pay the 50% of your income in taxes, you need to protect your money from bureaucrats. I'm not saying that paying taxes is wrong because paying taxes is important for the improvement of society we live in.
The problem is the way these bureaucrats spends that money, which they take away in the form of taxes. So you need to protect your money from bureaucrats who are paid to just spend that money which they collect in taxes.
How To Protect Your Money?
Well the answer is pay less in taxes, How?
Do you know the government's tax structure has many loopholes for investors and businesspersons, So just start building passive income by building businesses and portfolio income by investing. I have already discussed about passive income and how to build passive income, will also discuss about portfolio income later on.
Off course you are not meant to pay the 50% of your income in taxes, you need to protect your money from bureaucrats. I'm not saying that paying taxes is wrong because paying taxes is important for the improvement of society we live in.
The problem is the way these bureaucrats spends that money, which they take away in the form of taxes. So you need to protect your money from bureaucrats who are paid to just spend that money which they collect in taxes.
How To Protect Your Money?
Well the answer is pay less in taxes, How?
Do you know the government's tax structure has many loopholes for investors and businesspersons, So just start building passive income by building businesses and portfolio income by investing. I have already discussed about passive income and how to build passive income, will also discuss about portfolio income later on.
2. Bankers
Banks - I would call them as 'The most favorite place for the poor and middle class.'
Banks were made to protect your money from robbers. But what if you found out your banker were also robber? Well giving out money from your pocket to your banker and getting 5% in return per year and then your banker is allowed to lend the 20 times of that same money to you and earning 12-20% per year and that too legally. Have you ever noticed that?
Why?
The problem is not only this, the problem is with the retirement funds that your banker already takes out from your paycheck before even you get that paycheck in your hands. So just be careful when it comes to your retirement plans and other savings with your banker. Because, you may or may not get richer by saving with your banker but your banker will definitely be!
How?
To Protect your money from your banker all you need to do is just start saving in commodities and paper assets until or unless that savings are not meant for immediate liquidity, likewise your emergency fund.
I'm talking about the money that is your long term savings such as cash deposits, retirement funds etc. to put them in paper assets and commodities.
I'm talking about the money that is your long term savings such as cash deposits, retirement funds etc. to put them in paper assets and commodities.
3. Brokers
There are always two types of brokers the Good broker and the Bad broker, which one do you have?
Bad Brokers will take your money for themselves but Good brokers will take your money to help you grow rich and themselves along.
Why?
The problem is only by having a bad broker, you need to work out and analyze that what type of broker do you have? And make sure if it is bad, then protect your money as soon as possible.
How?
Simply analyze your broker and be with the Good one. Finding good brokers is not easy, as the world is occupied by the bad brokers. But, it doesn't mean that good brokers don't exist, it's just that you need to trust them and learn from them.
Good brokers are always in search of learning new things and are eager to teach their clients too, but only to the clients those who understand them.
Every Business have some thing to 'Sell', if they don't sell they won't get richer and in fact they will get out of the business. And if you don't buy their product then you will get rich.
Bad Brokers will take your money for themselves but Good brokers will take your money to help you grow rich and themselves along.
Why?
The problem is only by having a bad broker, you need to work out and analyze that what type of broker do you have? And make sure if it is bad, then protect your money as soon as possible.
How?
Simply analyze your broker and be with the Good one. Finding good brokers is not easy, as the world is occupied by the bad brokers. But, it doesn't mean that good brokers don't exist, it's just that you need to trust them and learn from them.
Good brokers are always in search of learning new things and are eager to teach their clients too, but only to the clients those who understand them.
4. Businesses
Re-Read the above statement until or unless it knocks in your mind about Why to protect your money.
How?
Just don't spend on those things, that makes you poorer. Specially, don't buy anything on credit cards because paying for something with no value and that too at 18% are the traits of the poor peoples not the rich.
So, stop spending on worthless things, start spending on things that makes you money and puts money in your pocket, don't spend on those things that take money from your pocket.
5. Barristers:
Beware! They are clever and can knock at your door through the courts.
Yes, Barristers are also from those, you need to protect your money from. Most of them just try to sue you in the courts just to take money from you and make themselves rich with your money. You can't save yourself from one of the best barristers who can come your way. So just beware!
Bottom Line
So, today we learned about the 5-B's from whom you need to protect your money. Earning money and having passive and portfolio income is very important thing to become rich and wealthy.But, you can't ignore to protect your money from these 5 B's. They can also be a roadblock at your path to become rich and wealthy.
This was our Financial Mantra #5 - Protect Your Money, read it then re-read and yes if you missed our previous Financial Mantras - Pay Yourself First, Pay Off Your Debts, Build Passive Income, Budget Your Money. Then read them too it's quiet important for your journey to become rich and wealthy.
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