The 5 Irrefutable
Laws of Personal Finance
1. The Law of Income as the Foundation
All wealth starts with Income.
You need a salary or other earnings to begin building your finances.
Your income sets the limits for how much you can save and invest.
2. The Law of Controlled Expenses
Your spending will grow to match your income unless you control it.
Be disciplined with your expenses.
It’s not about how much you earn, but how wisely you spend.
3. The Law of Proportional Savings
No matter what you earn, you must save a fixed part of your income.
Saving is the foundation of building wealth.
Follow the golden rule: "pay yourself first". Saving 20% of your salary is a great goal.
4. The Law of Delayed Gratification
Real wealth comes from giving up short-term comforts for long-term freedom.
Sacrifice today’s luxuries to secure a better financial future.
5. The Law of Debt
Don’t use debt to pay for personal expenses or lifestyle upgrades.
All your spending should come from your income.
Avoid using loans for daily needs; debt should be used only for investments that grow your wealth.
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