The 21 Laws of Money

What we see happening is the Rich getting Richer and the Poor getting poorer, this is largely because the Rich know how to keep the money flow in their direction whereas the money flow of the poor is away from them.

The Rich have been able to identify the Laws by which money play by and the beautiful thing about a Law is that it is no respecter of persons, it obeys whoever uses it. Just like the Law of gravity, no matter how light or rich a person is he must surely come down if he jumps up.

So money doesn’t know the identity of it’s owner, it just obeys.

Brian Tracy in this book has helped to identify 21 laws money responds to and I would be summarizing his thoughts on 5 of the Laws.

1. The Law of Cause and Effect
2. The Law of Belief
3. The Law of Expectations
4. The Law of Attraction 
5. The Law of Correspondence 
6. The Law of Abundance 
7. The Law of Exchange 
8. The Law of Capital 
9. The Law of Time Perspective 
10. The Law of Saving
11. The Law of Conservation 
12. Parkinson’s Law
13. The Law of Three
14. The Law of Investing 
15. The Law of Compound Interest
16. The Law of Accumulation
17. The Law of Magnetism
18. The Law of Accelerating Acceleration
19. The Law of the Stock Market
20. The Law of Real Estate
21. The Law of the Internet

Law of Cause and Effect

States that for every effect, there is a cause. Financial success is an effect that is primarily caused by the way you think.

“You become what you think about most of the time”

It is the way you think about money and about financial situation that largely determines your financial conditions today.

Law of Correspondence 

States that your outer world reflects your inner world.

Nothing really changes or happen to/for you in the long term until and unless it corresponds to something inside of you.

“By thinking and talking only about what you want, and by refusing to think or talk about what you don’t want, you become the architect of your own destiny.”

Law of Saving

States that financial freedom comes to the person who saves ten percent or more of his income throughout his lifetime.

Savings today guarantees the security and possibilities of tomorrow.

Law of Compound Interest

States that investing your money carefully and allowing it to grow at compound interest will eventually make you rich

The key to this law is to put money away and NEVER TOUCH IT.

The Rule of 72 can be used to determine how long it would take for your money to double at any rate of interest.

If your interest rate is 8%, then 72/8=9, it would take 9 years to double your money at 8% Interest.

Law of Real Estate

States that The value of a piece of Real Estate is the future earning power of that particular piece of property.

When buying a property these should be put into consideration 

• Location
• General economic activity 
• Number of Jobs and Level of Wages

When you own a property, knowledge and skills should be put to work to increase the value of that property because ‘You make your money when you buy and realize it when you sell.’