How To Save Money: Principles And Rules For Successful Entrepreneurs
It is true that Life is a function of laws and principles! The principles to win, the principles to acquire wealth, the principles to also sustain money and wealth. Either the drive of becoming successful as entrepreneur is true that this subject is not often discussed among successful entrepreneurs. This is because [MONEY RULE ] applies principles, I.e one singular rule that determines whither you are going to be a successful or unsuccessful entrepreneur is how willing you sustain by these principles.
The Money Rule is required as the first principle most entrepreneurs who have become successful has learnt to master.
If you are an entrepreneur, you will agree with me that being an entrepreneur is tough! And it is TOUGHER to be a successful entrepreneurs. But that is the most reason entrepreneurs are focus, patience and persistence. I make remark of days in secondary school; my teacher will always tell us: “if you play away your time; don’t forget you will have to contest with those who invest their time.”
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That is, (play now and pay latter, or pay now and play now.it a question of personal decision. But what I later there is the law of sowing and reaping. That singular saying changes some thoughts about us! It made us to know that we are what we do with our time and that our future depends on the event we chose to spend our time on. Back to business!
MONEY RULE is know by some notable successful business men. Mention, any successful entrepreneur; I believe he knows this rule. It is call the Parkinson’s Law
Parkinson’s Law states that Expenses will always RISE to MEET Income. This law simply explain the reason why we had some directors who died years back after retirement. I think we need to explain this Parkinson’s Law; what does this law really mean?
Explanation of Parkinson’s Law:
Let say Mr A is a contract staff to Reputable firm [ Shell] and his salary was 27,000. Mr A, decided to be squatting with his parent because the salary was small. He chose to shop at KATANGUA (SUPPER) instead of Shoprite. Mr A won’t buy fast foods. He washes his cloths himself! But now…..Mr A salary was increased to 50,000. Immediately after the increment, Mr A, became curious, he need to get some new cloths and he decided to shop at Just_Rite instead of shopping at Katangua (supper). He also felt he deserved to eat fast food after all he has the money. He also needed privacy. So, he went to rent a room at Mainland.
Not too long; his salary up to 250. Mr A, relocated to Ikeja where he had to pay 750k annually on rent. He bought a big gen and got a tab.
In fact, shopping at Just_rite is stressful. So, he began to make orders online. He also felt going by public buss is no longer befitting. So, he goes out on Taxis. like that and like that… As you can see from the above example; Mr A Expenses Increased along with his Income. People like that will never be a successful entrepreneur.
In fact, there are lots of Pastors, Doctors, Teacher, Engineers, Imams and Entrepreneurs who practiced this law. If there is anybody who is successful with money; it is certain that they understood
How Brain Tracy puts it:
Parkinson’s Law is one of the best known and the most important laws of 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 bit more besides. Their expenses rise in lockstep with their incomes. Many people are earning today several times what they were earning at their first jobs.
But somehow, they seem to need every single penny to maintain their current lifestyles. No matter how much they make, there never seems to be enough. The first corollary of Parkinson’s Law says: Financial independence comes from violating Parkinson’s Law.
It is only when you develop sufficient willpower to resist the powerful urge to spend everything you make that you begin to accumulate money and move ahead of the crowd.
The second corollary of Parkinson’s Law : If you allow your expenses to increase at a slower rate than your income, and you save or invest the difference, you will become financially independent in your working lifetime.
This is the key. I call it the “wedge.” If you can drive a wedge between your increasing earnings and the increasing costs of your lifestyle, and then save and invest the difference, you can continue to improve your lifestyle as you make more money. By consciously violating Parkinson’s Law, you will eventually become financially independent.
Insight Of Money Rules For Successful Entrepreneurs
◆ From this point forward, resolve to save and invest fifty percent of any increase you receive in your income from any source.
◆ Learn to live on the rest. Save fifty percent of any amount that you receive from any source. This still leaves you the other fifty percent to do with as you desire.
◆ Sucessful Entrepreneurs learnt how to break this rule. If you must be a successful entrepreneur; then learn to break Parkinson’s Law.
◆ Do not spend all You earn on expense. Expense is said to be any thing that can’t liquidate.
◆ If You Spend all you earn, and do not have a lively source of income, you will always be financial needy.
◆ Only invest on commodities.
◆ Saving money becomes useless if you do not invest with it (it will only depreciate in values).
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