BOOK REVIEW: THE 21 ABSOLUTELY UNBREAKABLE LAWS OF MONEY by BRIAN TRACY.

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    Brian Tracy is a Canadian-American motivational public speaker and self-development author. He is the author of over seventy books that have been translated into dozens of languages..

    Brian Tracy says one of your major goals in life should be financial independence. One must aim to reach the point where one has enough money so that one doesn’t have to worry about money again. The good news is that financial independence is easier to achieve today. We are surrounded by more wealth and affluence than ever before.

    I have summarised the book for you to basically give you a synopsis where I have picked the important laws of money from the book. So here we go:

  1. The Law of Cause and Effect:

    Everything happens for a reason, and there is a cause for every effect that takes place. You can acquire whatever amount of money you really want if you will only do what others have done before you to achieve the same results. And if you don’t, you won’t earn the same amount of money that they earned. It is as simple as that. The most important expression of this universal law is that “Thoughts are causes and conditions are effects.” The most important principle of personal or business is simply this: You become what you think about most of the time.

  1. The Law of Belief:

    Whatever you truly believe, with strong feelings and conviction, becomes your reality. When you are absolutely convinced that you are a financial success in the making, you will engage in such behaviours that will make it come through.

  1. The Law of Attraction:

    Human being is like a living magnet where he or she invariably attracts people, situations and circumstances that are in harmony with his or her own dominant thoughts. When a person develops a burning desire for financial success and thinks about it all the time, the person sets up a force field of positive emotional energy that attracts people, ideas and opportunities into one’s own life to help convert one’s goals into realities.

  1. The law of Abundance:

    We live in an abundant universe in which there is sufficient money for all those who really want it and are willing to obey the laws governing its acquisition. There is plenty of money available for you. There is no real shortage. You can have virtually all you want and need. The first corollary of the Law of Abundance says that, people become wealthy because they decide to become wealthy. The second corollary of this law says: People are poor because they have not yet decided to become rich.

    Why aren’t you rich already? Write down all the reasons you can think of. Go over your answers one by one with someone who knows you well and ask them for their opinion. You may be surprised to find that your reasons are mostly excuses that you have fallen in love with.

  1. The Law of Time Perspective.

    Successful people in any society are those who take the long term period into consideration when making their day-to-day decisions. People with long term perspectives are always willing to pay the price of success for a long—long time before they achieve it. They think about the consequences of their financial choices and decisions in terms of what they might mean in five, ten, fifteen and even twenty years from now. As you begin thinking long term and organising your financial life and priorities with your future goals and ambitions in mind, the quality of your decisions improves and your life starts to become better almost immediately.

    The first corollary of the Law of Time Perspective says: Delayed gratification is the key to financial success. The second corollary of this law says: Self-discipline is the most important personal quality for assuring long-term success. The third corollary of this law says: Sacrifice in the short-term is the price you pay for security in the long-term.

  1. The Law of Saving:

    Financial freedom comes to the person who saves ten percent or more of his income throughout his lifetime. One of the smartest things that you can do is to develop the habit of saving part of your salary, with every pay-check. Begin today to save ten percent of your income, and never touch it. This is your fund for long-term financial accumulation and you never use it for any other reason except to assure your financial future.

    If you are in debt and ten percent is too much for you, start by saving one percent of your income and living on the other ninety-nine percent. When you become comfortable living on ninety-nine percent of your income, increase, your, saving rate to two percent. Equally important to earning is saving.

  1. The Law of Conservation:

    It’s not how much you make, but how much you keep, that determines your financial future. Many people make a lot of money in the course of their working career. Sometimes, during boom periods, people munificently exceed their expectations and make more money than they ever would have thought it was possible. The true measure of how well you are really doing is how much you keep out of the amount that you earn.

    Calculate your true net worth as of today. Make a list of all your assets and value them at the amounts you could actually get for them if you had to turn them into cash in the immediate. Add up all your bills, credit card balances and mortgages and then subtract them from your assets to get your net rupee worth of today. Now divide the number of years you have been working by your net worth. The result is the net amount you have actually earned each year after your costs of living. Are you happy with it? If not. Start doing something about it immediately.

  1. Parkinson’s Law: Expenses rise to meet income. Just as the old adage that says “work expands so as to fill the time available for its completion.” Parkinson’s Law is one of the best known and the most important law for money and wealth accumulation. It was developed by English writer C. Northcote Parkinson many years ago and it explains why most people retire poor. This law says that, no matter how much money people earn, they tend to spend the entire amount and a little more besides. Their expenses rise in direct proportion of their incomes.
  2. The law of Investing.

    Investigate before you invest. This is one of the most important of all the laws of money. You should spend as much time studying a particular investment as you do earning the money before you put that money into a particular investment. Remember. You have worked very hard to earn it and taken far too long to accumulate it. Investigate every aspect of the investment well before you make any commitment. Ask for full and complete disclosure of every detail. If you have any doubt or misgivings at all, you will probably be better off keeping your money in the bank or in a money market investment account.

    The corollary of the Law of Investing says: If you think you can afford to lose a little, you’re going to end up losing a lot. Another corollary of the law of Investing says: Only invest with experts who have a proven track record of success with their own money. Invest only in things that you fully understand and believe in. Take investment advice only from people who are financially successful.

  1. The law of Compound Interest.

    Investing your money carefully and allowing it to grow at compound interest will eventually make you rich. Compound interest is considered one of the greatest miracles of all human history and economics. Albert Einstein described it as the most powerful force in our society. When you let money accumulate at compound interest over a long period of time, it increases more than you can imagine.

    For example, if you were receiving eight-percent interest on your investment, and you divided the number 72 by eight, you would get number nine. This means that it would take you nine years to double your money at eight percent interest.

    The first corollary of this law says: The key to compound interest is to put the money away and never touch it. If you ever touch that money, you lose the power of compound interest, and though you spend only a small amount today, you will be giving up what could be an enormous amount later on. If you start early enough, invest con-sistently enough, never draw on your funds and rely on the miracle of compound interest, it will make you rich.

    An average person earning an average income who invested Rs 1000 per month from the age of 21 to the age of 65, and who earned a compounded rate of 10% over that time, would retire with a net worth of (1.12 crore) or say 1,11,80,000 to be exact. Begin a regular, monthly investment account and commit yourself to investing a fixed amount for the next five, ten or even twenty years. Select a company with a family of mutual funds and investment instruments, and keep your money working, month after month and year after year.

  1. The Law of Accelerating Acceleration.

    It says. The faster you move towards financial freedom, the faster financial freedom moves towards you. The more money you accumulate and the more success you achieve, the more faster money and success seem to move towards you, from a range of different directions. Everyone who is financially successful today has had the experience of working extremely hard, sometimes for years, before they got their first real opportunity. But after that, more and more opportunities flowed to them, from all corners.

    The first corollary of the law of Accelerating Acceleration says: 80% of your success will come in the last 20% of the time you invest.

    This is a remarkable discovery. Just think! You will achieve only about 20% of the total success possible for you in the first 80% of the time and money that you invest in an enterprise, a career or a project. And you will achieve the other 80% in the last 20% of the time and money that you invest.

    Peter Lynch, the former manager of the Magellan Mutual Fund, one of the most successful mutual funds in history would often buy the stock of a company that did not increase in value for several years. Then it would take off and go up ten or twenty times in price. This strategy of picking stocks for the long term eventually made him one of the most successful and highest paid money managers in America.

  1. The Law of Real Estate.

    The value of a piece of Real Estate is the future earning power of that particular piece of property. The value of any piece of property is determined by the income that can be generated by that property when it is developed to its highest and best use from this moment to time onward and into the future. A piece of property may have sentimental value for a particular owner but its dollar value is directly related to its future earning power.

    There are vast areas of many large cities where property values are declining because growth and development have come and gone and will probably not return. Every day, men and women are selling homes and properties at less than they paid for them, or losing them to foreclosure because these properties have declined in earning power and therefore in value.

    The first corollary of real estate is: You make your money when you buy and you realize it when you sell. This is very important. It is only by purchasing a piece of property at the right price and under the right terms that enables you to sell it at a profit. Many people think that they will make their money when they sell the property irrespective of how they purchased the property or at what price. The more carefully you investigate a piece of property and the more thoroughly you prepare a purchase offer, the more likely it is that you will get the kind of deal that will enable you to sell that property at a profit later on.

    The second corollary of the Law of Real Estate is: The three keys to real estate selection which are location, location and location. Your ability to choose a piece of property in an excellent location will have more of an impact on the future earning power of that property than any other decision that you make.

    Another corollary of this law is: Real estate values are largely determined by general economic activity in the area and by the number of jobs and the level of wages. Generally, property increases at three times the level of population growth and two times the rate of inflation. When you purchase a property in a fast growing community, you are virtually ensured of above average increases in value.

Conclusion

    There are four keys to success with money. First, earn as much as you possibly can. Do everything possible to excel in your field so that you are paid extremely well for what you do.

    The second key to money is to hold on to it as much as you possibly can.

    The third key to money is to reduce and control your costs of living. Buy less expensive items. Put off important buying decisions for a day, week or even a month so that when you finally do make the decision, it is a good one. All wealthy people are very careful with their money and their expenditures. That’s how they became wealthy.

    This is a wonderful time to live. It has never been more favourable a time for you to make more, save more, accumulate more and grow your money faster than it is today. Your job is to take full advantage of the wide range of opportunities that are available to you. Your job is to apply these laws to fulfil your financial destiny and become wealthy in your working lifetime.

A must read. I would give the book seven out of ten. Goodbye and see you soon.

By Kamlesh Tripathi

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https://kamleshsujata.wordpress.com

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