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The 13 Absolutely Unbreakable Laws of Money (by Brian Tracy)
By JLP | May 15, 2007
I posted this on my old blog a long time ago. I originally found this on the internet several years ago and thought I would share it. I can’t find the source for the information but I will tell you that it is written by Brian Tracy and that I received permission to reprint it here.
1. The Law of Abundance: We live in an abundant universe in which there is sufficient money for all who really want it and are willing to obey the laws governing its acquisition.
2. The Law of Exchange: Money is the medium through which people exchange their labor in the production of goods and services for the goods and services of others.
3. The Law of Capital: Your most valuable asset, in terms of cash flow, is your physical and mental capital, your earning ability.
4. The Law of Time Perspective: The most successful people in any society are those who take the longest time period into consideration when making their day-to-day decisions.
5. The Law of Saving: Financial freedom comes to the person who saves ten percent of more of his income throughout his lifetime.
6. The Law of Conservation: It’s not how much you make, but how much you keep, that determines your financial future.
7. Parkinson’s Law: Expenses always rise to meet income.
8. The Law of Three: There are three legs to the stool of financial freedom: savings, insurance and investment.
9. The Law of Investing: Investigate before you invest.
10. The Law of Compound Interest: You become financially independent by investing your money carefully and allowing it to grow at compound interest.
11. The Law of Accumulation: Every great financial achievement is an accumulation of hundreds of small efforts and sacrifices that no one ever sees or appreciates.
12. The Law of Attraction: The more money you save and accumulate, the more money you attract into your life.
13. The Law of Acceleration: The faster you move toward financial freedom, the faster it moves toward you.
Topics: Investing, Miscellaneous, Personal Growth |
May 15th, 2007 at 10:42 pm
Thanks for the interesting post, JLP! Embracing #1 could certainly change the world, don’t you agree? Or at least get that leach of a relative off the family dole! OUCH w/#7. True when money is tight…but when your salary starts clipping along in your 40s, I don’t agree w/it, except I acknowledge that your dang taxes certainly rise. And if you pay yourself first, then not true either! Once your savings start snowballing, it becomes really fun executing your financial plans (retirement, college savings, etc.) because the balances finally seem significant!
May 16th, 2007 at 12:41 am
Is it realistic to expect someone who earns minimum wage abd has student loan debt to be able to save 10 percent of their income?
May 16th, 2007 at 7:10 am
@JLP - That seems to just about cover it.
@Stacey - Agree, that in one’s 40’s (at least in my personal experience) when career or business is peaking, retirement investments are chugging along, settled into a nice home you’ll stay in for next 20 yrs, etc., you can start reaping the benefits of years of hard work and delayed gratification, and it is easier to generate “excess” income. Of course, this is also when many folks are putting kids thru college - ouch - but hopefully that expense has been anticipated and prepared for.
I must say, however, that it is a challenge to keep expenses from rising to meet income because a continued level of disciplne and self-restraint is required (not my strong qualities). And the dark side of this 40-something nirvana is that if you have not taken the steps to put your house in order, both professinally and personally, your late 40’s, early 50’s seem to be about when the sh*t really hits the fan. I am seeing this now with friends who I assumed were cruising along just fine, only to discover there was a bad stuff brewing behind the scenes in money, career, and relationships.
May 16th, 2007 at 8:41 am
I was thinking also that wealth is created and that it is not the rich stealing from the poor but that the pool of wealth is always increasing so that everyone has the opportunity to succeed.
May 16th, 2007 at 3:20 pm
I see opportunity all over the place, but what good is opportunity if you don’t have the cash or credit to do anything about it? I once watched helplessly as someone with money took advantage of an opportunity I had first see a year earlier.
May 16th, 2007 at 3:57 pm
Minimum Wage,
I hear you and I understand what you are saying.
You need to learn how to network. If you don’t have the money to seize opportunities then find someone who does. Either that or figure out a way to make more than minimum wage.
I don’t mean to offer up a tired cliché but this one rings true: where there’s a will, there’s a way. In other words, if you want it bad enough you’ll figure out a way to get it.
May 16th, 2007 at 5:42 pm
Here’s another classic for you to ponder: http://rebirthofreason.com/Articles/Setzer/Saving_for_Greatness.shtml
May 17th, 2007 at 12:12 pm
@ Min Wage - I have to agree with JLP. I hesitate to go into a touchy-feely power of positive thinking thing, but I must admit: The one thing I have learned over my 40-some years is that we are only limited by our thinking.
Trust me, I kick myself every single day for being too thick-headed to fully comprehend the many oppty’s that have slipped thru my fingers. Time and time again, I see that the people who just get down and hustle like crazy, are the ones who figure out ways to take advantage of opptys.
Obviously, I don’t know the details of the one that slipped away from you. Maybe it wasn’t meant to be. Or maybe, there was a way to get OPM (Other People’s Money), bring in a partner, convince the seller to provide part of the financing, etc.
There is no substitute for:
1) An optimistic, can do attitude.
2) Knowing the tricks of the trade (whatever your trade)
3) Knowing who to go to for advice, financing, etc.
4) Hustle (that burning desire to get something done despite the odds).
Sorry if I sound preachy (it’s just me being fired up). A few days ago I had the oppty to meet a man who had sunken so low, he was homeless for a period of time, and today he is a millionaire. His story is well-chronicled, so its no joke, and he spoke about his early experiences with overcoming long odds. It’s a story I can well relate to.
May 18th, 2007 at 5:19 am
Star Money Articles for the Week of May 14
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June 26th, 2007 at 10:08 pm
I would like to bring to the attention that the unbreakable laws regarding money is more of a reality than a fantasy, hence we must regard money more of as a resource or just a tool for its wise use or purposes. I think the author has made a very good point when he said that money is not the cause but rather it is the effect. I really agree that money is the effect in our lives, since most of us usually spend our money before we even have earned it. Usually the causes are overspending, not having multiple streams of income neither passive income and spend more than what we earn hence, the effect is insolvency and overdrafts. Why not reverse the other side of the picture by making a better cause of having greater opportunities to earn income and having more resources and businesses to earn more, so that the effect will be having substantial cash ready for investment. If our cause will mean being hard working and enthusiastic in creating more resources and means to earn then the effect will be more liquidity in our financial statements and ready to invest in capital gains. Money is a medium of exchange, it means that before we must have it or part from it there has to be an exchange. There is nothing in this world where money has parted without having an exchange. You part money, in return you acquired land or car, buildings, ships, clothings and food. It is therefore our role to treat money wisely and respect it. The question therefore is presented, is money wealth? Money is not wealth, it becomes wealth only when it is used for utility purposes. Money is used to meet obligations, to pay for the rent, food and in purchasing hotels, planes and vacations around the world. The best use of money could never be discounted and disregarded even the Bible is telling us that money answers everything. Money is like a friend treat it sincerely and never part it for it is just like parting a good friend. One way of defining being rich is when you enjoy life so is with money, money with all its misconceptions would only mean having it and being rich by enjoying it. Money therefore was invented by our moneytorist
simply to enjoy it.
September 3rd, 2007 at 11:04 am
Many thanks for sharing your list with us, nicely laid out.
March 1st, 2008 at 5:12 pm
@ Minimum wage: If you have student loans, then chances are you need not be making minimum wage. I found a job with state parks, it does not pay the best, but it came with a cabin. It is an opportunity to save and pay off my student loans (over 11,000 in 10 months).
Also, look where your money is going… living on little is possible, but you must be precise with your budgeting as there is little room to error. If you like your minimum wage job, consider downshifting your life a bit. If you sacrifice a bit now, later you can reap the rewards.
I myself want to invest, but I know that I need to pay off my student loans and also save a bit of fall back money before I can really jump in. Calculate and hesitate- jumping the gun has ruined many people.
May 27th, 2008 at 5:27 pm
@minimun wage - I agree with Derrik F. As someone who is also paying off student loans, I can understand how hard it is to put money into savings. Thankfully I am not making minimun wage and it’s letting me climb out of debt.
I suggest getting rid of any minor debts before you think of a savings plan. Get rid of credit card expenses first, and stick to a budget, like $15/day during the week. Those 2 tips got me out of all my credit card debts (best buy, clothing stores, visa/master cards). In total I ended up spending over $400/month which I am now puting into student loans.
Best of luck
July 25th, 2008 at 6:41 am
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