The Law Of Money


Money is the ultimate aim that we have to run daily in our life. Whatever, the category people rich or poor ultimately at the end of the day they earn money. The more money you have the more wealthy and powerful you are.

Everyone around the world no matter what country they are working in to earn some money for themselves. This currency will play a vital role in our life and also it helps to increase our value in society.


The money also has certain laws that you should follow to stay the money in your hands. Or else it will fly away from your pocket and you become broke soon.

Today, we have to discuss the law of money and how this law helps to make us rich. These 4 main laws help us to earn more money in our life. Let’s get into today’s topic.

4 Laws Of Money

1. Never Spend More; Then You Make


People are nowadays not warned highly and they are middle class in the hierarchy of classes. The people spend more than he/she for that job. The job doesn’t pay well also their spending is more than their salary.

It’s because they want to purchase lots of things for themselves. Even if they have an average salary but he/she was not purchased within the limit.

The limitless purchases will make them suffer in their finance. The financial advisors also said never to spend more than you earn.

For example, Peter joined his new job as a fresher. His salary is $1000 per month and $12,000 per year. After he gets his first salary from his job and he has other commitments. But at the same time, a new iPhone has been launched and Peter wants to buy it. He will buy $1500 worth of iPhones and buy it with EMI. Now, he has more spending than his earnings.

This may vary from person to person. Whoever may be he gets high or low all it doesn’t matter. It will apply to all the category people.

Always living below your means will save you from big financial burdens. Keep saving and invest your surplus money in your bank or financial instruments.

2. Stay Actively Invest Your Income & Track Your Net Worth


Few middle-class people became millionaires in their old age because they will start investing their money. The sad reality is many of them do not even start their investing journey till their 30s.

You may have the question, why do I want to invest my money?

It is because investing will grow your money and helps to safeguard you from inflation. People do not even understand the value of investing nowadays. People give more importance to saving not investing.

Understand the difference between saving and investing hour money. Saving is simply putting your money in the bank for a long time. It is not useful because the bank will give low interest to you and you will just hold your money in the bank.

Investing is completely different from saving, you will invest your money in various financial instruments, real estate, gold, and money. It is because investing will grow your money and helps you in the future not to suffer from enough money. Investing your money is a precaution to take action before any uncertainties happen to you.

When you invest your money and don’t about it is the biggest mistake. Every month you should track your investments to identify if it is growing or not. This tracking method is useful to diversify your money and invest in it on various financial instruments.

Start making hour investing journey earlier and the earlier you start the earlier you get the returns.

3. Don’t Get Debt To Impress Other People


Some of the people do this mistake to who off themselves to others. It is not useful also it will move towards a big financial trap. Debt is a tool and also a weapon, if you have it as a tool you generate wealth. If you use it as a weapon you can lose all your wealth.

The modern world will lead us to show off to the internet and people how rich I’m. Even though he/she has a low-paying job also spends like a wealthy person. They get money from others go spend and show off them like rich people.

It’s not good for their future and their financial life. When they will realize where they face a critical situation. At the time there is no person they have to borrow the money.

They borrow it and spend it on buying luxurious products. They were buying this thing and showing off to society. Know your income better and don’t get into debt unnecessarily unless you need it.

4. Don’t Buy Depreciating Assets

The word asset means a property or financial instrument which makes money for you. The passive form of income from your properties is known as assets. It’s the way you generate your wealth and also it’s happening because of buying new assets.

Sometimes, people did not understand the true value of assets. Also, they will buy depreciating assets like cars, buildings, etc. This depreciating asset won’t give any returns towards you.

For example, if you buy a house by getting home loans and other sources. If you build a house on your own and it no generates any income for you. You consider your house a depreciating asset. In the same, you build your house like a mansion or apartment. If you live in a house and make other houses rent out. It will generate income from your mansion or apartment for you it is a good asset. You can repay your loans and the loans are finished then returns are turned into profits from your assets.

Buying gold, properties, shares, intellectual property(patents), etc are appreciating assets. Buying vehicles, machines, etc are depreciating assets. Think before buying an asset if you are generating income from your assets it is the right decision to invest your money. Unless you invest your money in depreciating assets.


These 4 things are all the laws of money. If you understand this properly you can build your wealth and be financially free earlier than anyone. Most middle-class people went from understanding these 4 things and become financially free in their rest of the life.

READ MORE:- Assets That Make People Rich

READ MORE:- 5 Rules To Become Rich

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