Saturday, 21 April 2012
AS SEEN ON STEVEN AND CHRIS: My favourite money quotes!
"A penny saved is a penny earned."Translation: Saving small amounts throughout your life is the best way to build wealth. When you're buying anything, consider the cost and see if you can get it for a better price somewhere else. Remember: Every penny you save should go directly back into your bank account.
"What's the quickest way to become a millionaire? Borrow fivers off everyone you meet."Translation: Too many of us are living off borrowed wealth. We fund rich lifestyles through credit cards, huge mortgages and car leases. Focus on building real wealth in your life. Live below your means. No more than 30% of your after-tax income should be spent on your mortgage and taxes, and no more than 25% on the rest of your living expenses. Also, 10% of your income should always go towards savings and investments. If you aren't meeting these basic percentages, you need to cut back on something.
"Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1."Translation: Don't spend more than you have. Always respect your money and be conscious of how you're spending it. Don't take unnecessary investment risks; avoid losing money.
"If investing is entertaining, if you're having fun, you're probably not making any money. Good investing is boring."Translation: Take a slow and steady approach to investing. Making money is hard work and quick profits are not a reality. If we all had dull investing habits, we would be much wealthier and more financially secure. If it's quick thrills you're after, head to the casino; if you want to build wealth, save early, consistently and intelligently.
"Greed is good."Translation: We need to be greedy (to an extent) in order to get ahead financially. Gekko was referring more to the hunger and the will behind financial gain—to do and be your best. We always have to serve and guard ourselves first before we can help others.
Posted by Rubina Ahmed-Haq