Rich Dad, Poor Dad

Financial self-education and a realistic appraisal of finances are the building blocks of growing wealthy.

Earlier you start at building your personal wealth, the better. If you begin at 20, you're far more likely to become rich, than at 30.

Set financial goals based on a realistic appraisal of finances. A good look at the income, and expenses helps you plan your future accordingly. Coupled with financial education, there's a good change you'll become wealthy one day.

To become wealthy, one must learn to take risks.

Insanity is defined as doing the same thing over and over again, and expecting different results. If you wish to change your current financial state, you'll need to start handling your finances differently.

The biggest change needed is to take risks. Every financially successful person have taken risks to get where they are, and it is so because they manage these risks rather than fear them.

Taking those bigger chances and handling those bigger risks will reap higher rewards, and make a bigger income.

The road to wealth is long, so you must keep yourself motivated.

Journey to wealth is hard, long, and trying. It's easy to lose heart when you watch your risky investment suddently tumble. During such setbacks, you'll need to find ways to stay motivated.

Make lists of "wants" and "don't wants". Pull these out to remind yourself why you started this journey.

Gather more financial knowledge by researching life stories of how wealthy individuals like Warren Buffett overcame their struggles.

Laziness and arrogance can drive even financially knowledgeable people to poverty.

Personality pitfalls, like laziness and arrogance can hamper and even reverse the journey to wealth. Laziness is ignorance to certain variables, or even avoiding to make the right financial decisions.

Arrogance too, is extremely dangerous. Can be defined as a combination of poor financial knowledge and an ego too proud to admit it. 

Keep these personality pitfalls in check.

Invest in Assets, and avoid Liabilities

Knowing the difference between an asset and a liabiltiy is necessary to ensure you're making strong investment decisions.

Asset - Makes you money

Liability - Costs you money

Invest in more assets, like business, stocks, bonds, mutual funds. Anything whose value appreciates over time. Invest your excess income into assets, making money make money.

Some liabilities are commonly mistaken for assets. For example, a house to a common man is a huge debt in terms of home loans for a large period of time.

Your profession pays the bills, but your business is what will make you wealthy.

Profession is what you do from 9-5. It is what pays the bills, buys the groceries and covers other living costs.

Business, is what you invest your money and time, to grow your assets. Investments in real estate, stock market trading, etc.

Your profession often funds your business intially; therefore, it's wise to keep your day job until your business starts to show sustainable growth. When they do, your assets become your main source of income. And that is the sign of true financial independence.

Understand the tax rules to help you minimize your taxes.

By becoming aware of how the "system" works in your country, you may be able to regally reduce how much money the goverment takes from you.

Because we're not trained in financial intelligence in school it's up to us as individuals to develop this trait by ourselves. We are only likely to become rich or financially independent once we have both a stronf financial IQ and a firm, ambitious mindset to support it. In the end, what you invest in your mind is what brings you success, because your mind is your most important asset in any financial situation.