 The three rules of money you must know in your 20s. Just a few days ago I was having a conversation with one of my family friends. He's a policeman and in his opinion all the books about how to make money are futile because there is no book that can actually teach you how to make money. Maybe he wanted to say that there is no book that can make you rich but saying there are no books that can teach you how to make money is like saying there are no principles of creating wealth. Well, the truth is that there are well tested principles of wealth creation and in this video I'll be sharing a few of them with you. If you're between the ages of 15 to 40 you'll want to subscribe to this channel because we created it specially for you. You can't work hard to make a million dollars. In our society making a lot of money is often associated with hard work. The problem about this assumption is that well most people are working hard yet they are poor. So what is wrong? I know it is simple. You can't work hard enough to make a million dollars or enough money to live a good life for that matter. Let's use a simple analogy to explain this. Look at the game of soccer. Your physical fitness can be of great help but being fit alone doesn't make you a good footballer. Does it? Yes, you can't be a good footballer if you're not physically fit. But being physically fit is not going to make you a good footballer either. To be a good footballer you need to have the skills with the ball, master the game and know how to outsmart others depending on the wing you play in. In the game of money working hard is important but it's often overrated. While you need to work hard you as well need to understand how to manufacture money. Manufacturing money legitimately happens in different ways. The most popular way to manufacture money is by starting a business. Holy heaven, having a successful business is like literally manufacturing money because money could keep on rushing to you by exchanging your products or services with hundreds of thousands or even millions of people. While building a successful business is the fastest way to make crazy amounts of money it is as difficult as hell and not many people can do it. For those of you who have feelings that you can build a successful business please go ahead and try it. Fear nothing because there's nothing to be afraid of even if you fail you'll still be better than most people because most people in the world are cowards. Now for those who think they are not wired to build businesses then you might do well with your life to build great skills that may make you attractive to a young promise in business. What happens here is that some people may not have what it takes to start a company but they have great skills needed to make such companies or one of his departments successful. People like this can end up being partners or one of the major shareholders of a successful company. The third part to great wealth is becoming so much valuable for a company that you're paid premium salary then learn how to invest such money diligently. In all nobody has a lot of money simply by working for money you have to know how to manufacture money. Keeping and growing money is as difficult as making it. If you don't have any money you're likely to believe that making money is the most difficult thing in the world. Well I have sad news for you most people who make money lose it and the reason for that is simple it's difficult to keep and grow money. The Parkinson's law says that human expense grows as their income grow. If you want to see this in the real world go and meet people who once earned $30,000 a year but are now earning $100,000 a year. Most of them have more debt and are as worried about money as they were in the past. What happens is that when people's income rises they become dissatisfied with everything they have. Their car becomes obsolete, their home starts to look like a prison, they need a new wardrobe and a bigger television. In fact some people in my country marry new wives just because they have more money. How do you handle this? Well find joy in growing your wealth. I need to explain this. You see I'm not holier than most people but I think I'm very much minimalistic. While I always have the temptation to blow some money on things I don't need so far I've learned how to overcome such temptation and that's by finding joy in building my wealth. Take for instance I saw a car that I liked yesterday and I know that I can afford it if I want to buy it but I told myself it's more pleasant to increase the size of my business than to look rich at this time. While some people in my country will term that as being silly or working without enjoying your labor to me it's like beauty. Nobody knows what beauty means to the other person. Nobody knows what gives other people happiness and you can make growing your wealth a source of your happiness. That reminds me of what George S. Claeson wrote in The Richest Man in Babylon. We always have the reason to spend all we have on whatever is important to us. This is different from Parkinson's law. While Parkinson's law says that human expense grows as their income grow, Claeson says humans always spend everything they have on what is important to them. The two opinions are correct depending on who you're talking with. If you are like an average human then you'll always have your expenses grow to meet your income but if you understand money then you might have your happiness in seeing your estate growing and in both cases your income will always go to wherever your priorities lie. Save for habit not to get rich. Most human beings earn and spend. It's that simple. Most people simply don't save money and one common reason for that is that an average human being feels that he doesn't have enough. Why would you save money when you don't have enough money? Well, you need to save money now that you don't have enough because saving is a habit just like giving and investing. It's obvious. The man that cannot give away five dollars out of his hundred will not give one thousand out of his fifty thousand. The man who cannot save a dollar out of ten dollars he earns won't save a hundred dollars out of one thousand and won't save any money even if he earns a hundred thousand. Again, remember the Parkinson's law. If you think you don't have enough money now because you earn little, if your income increases by 500 percent you won't still fill like you have enough. So what is my point here? Don't wait to save. Don't save to become rich. Save to have a saving habit because it's this habit that will help you to know how to save when your income increases and this can be a good pillar for everything discussed in this video. Remember what I've shared with you so far. Hard work is synonymous to being physically fit as a footballer. It's important but it doesn't make you a good footballer. You need financial skills to acquire money. You need to understand how money works and how to make money work for you. This is not simple but with practice many people watching this video can do it. Growing money is as difficult as making it because human expense usually grows to meet their income. You have to resist this by shifting your love for things to the love of your empire. You have to love seeing your portfolio growing because if you don't, then you'd love the latest shoes, cars and other shiny objects. Saving money is a habit and you have to develop it when you don't have much money because if you want to have more money before you start saving, well, remember Parkinson's law. If you like this video, don't forget to subscribe to our channel. We love you.