For the longest time, money has remained a controlling factor. It affects the most important things in our lives and has made financial savviness a necessary skill in the 21st century.
Some of the world’s wealthiest started from nothing but prospered because they made the right financial decisions.
They are considered successful because they have withstood the test of time - moneywise. During their lifetime, some of them have curated great quotes that encourage, inspire, and motivate.
These quotes communicate big ideas in few words and continue to inspire thousands across the globe. Take them because they are from the pros:
Stop buying things you don’t need to impress people you don’t like – Suze Orman
According to Suze, it is not necessary to make purchases simply because we are trying to please others.
The society preaches that good income warrants an extravagant life, and unfortunately, most people continue to believe this myth. According to data from Bureau of Economic Analysis (BEA), personal income increased by $31.9 billion in August 2016, causing the consumption expenditure to increase by $6.2 million.
The spending problem is persistent during the teen years when most people have little experience about life. During those years, we are mostly pushed into building our life around what people think rather than our own thoughts.
In most cases, we will let other people dictate what we wear, where we stay, the places we hang out, and how we spend our money. The situation worsens when we have clique friends.
Suze’s advice is that it is not always a must to fit in. It does not matter whether we are 20 or 50 years old.
Save One-Third, Live on One-Third and Give Away One-Third – Angelina Jolie
Angelina delivered the quote during an interview with CNN in 2005. Jolie even admitted to Anderson Cooper that she had a stupid income for what she did for a living.
The concept is worthy and needs some attention. Here’s how business insider broke it down:
1. Save one-third
The whole point is to divert a portion of your salary the second you receive it before it runs out. Since the chunk is already taken care of, you will not need to worry about the rest of the pay.
Look at it this way: pay yourself first then live on the rest.
2. Living on one-third
Living only on one-third of your income means you will be left with two-thirds. You can save, invest, or give away.
In fact, this is the key to everything financial. Living on one-third means you will have more money coming in while you have little expenditure.
3. Give away one-third
This is something that most of us struggle with, but feel like we want to do all the time. You can start small and increase with time. By giving, you will score more positive karma, and you will be of importance to the society.
Money is a great slave but a horrible master – Daymond John
The interpretation is that when you have money, it will work for you and serve you in the right way. However, if you owe it to people, it can control you in a painful way.
Daymond’s message is that despite the fact that we may be needing money, we should not live for it but keep it under our control. In short, he advises that we need to use money according to our will.
If we fail to use funds for the right reasons, it will become our master and will push us into evil deeds. Once it has enslaved us, we will be ready to commit crimes. We will go out to seek money without any regard for our family or health.
Daymond wants us to use money for the welfare of a common good.
It's not how much money you make, but how much money you keep – Robert Kiyosaki
Kiyosaki insists that the amount we earn is irrelevant; how much we keep should be our sole focus. He believes that the amount you can keep from your paycheck is the best way to evaluate how well off you are.
Kiyosaki ‘s reasoning is that while some things are compulsory (housing, transportation, food, utilities), other things are optional.
Financial Peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this – Dave Ramsey
Ramsey is discouraging us from overspending. The problem has been exhibited by millennials who continue to face an uncertain job market doubled with the high student loans.
He highlights the importance of learning to give because by giving we bring positive experiences and make ourselves happier. Giving also changes our outlook on the world.
Ramsey also reminds us that we need to save. The money expert and radio host believes that we are our worst enemy when it comes to financial security. He admits that after working with people who have been burdened by debts, it became apparent that their attitude about money was leading them into poverty; not their mere lack of money.
Ramsey advises that we should stop living in denial if we want to fix our finances. He also adds that we need to stop trying to keep up with the Joneses. According to him, we need to admit that we are ignorant and seek help instead of upholding ignorant financial decisions.
Know what you own, and know why you own it – Peter Lynch
Peter Lynch states firmly that it is crucial to know what you own and the reason behind the ownership. Company executives have admitted that this strategy is efficient and is the best way for developing your investment technique.
Lynch is discouraging investors from indulging in areas where they lack expertise.
About the Author
I am a regular writer for Forbes, Inc., Huffington Post, Entrepreneur Media (among others), as well as CEO and Chairman of Alumnify Inc. Proud alum from 500 Startups and The University of San Diego. Follow me on Twitter @ajalumnify