5 Laws of Gold

By: The LiveWellPlaySmart Team

Many of us were never taught how to build wealth. We learned how to work for money, but not how to make money work for us. The advantage when money works for you is that if money is placed in profitable assets (things that bring benefit or more money to your pocket) eventually, they can outperform or even multiply your efforts even when you are inactive. A foundational principle for wealth creation is to learn how to develop passive income: Money that continuously flows to you without active participation. This means, to work hard in the beginning to build a pipeline of profit or asset vehicle. Once made, profit flows to you with minimal effort: daily, monthly, or yearly with minimal upkeep/maintenance. This is positive Cash Flow. This is when money works for and adds unto you because of your knowledge, wisdom, understanding, application and hard work. The pipeline is a business system, (steps or way of doing something for a consistent result), that holds everything together like a building. When water flows through a pipeline, that's like turning the water (or money) on so the currency flows to your account non stop. In the book, The Richest Man in Babylon, a classic text on financial wisdom, it breaks down wealth-building into simple, practical laws. These principles are just as relevant today as they were thousands of years ago. Be sure to commit these laws to your memory.

1. Gold Comes to the Person Who Saves at Least 10% of Their Earnings.
This is the foundation of wealth and a principle repeated throughout the book. To Save 10% isn’t about the percentage necessarily. It’s about the discipline to save a portion of all the money you get over time. It's about the habit of saving. 'A portion of all you earn is yours to keep' if you are able to. In time, you will then have a source of investment capital, (money or assets set aside and dedicated for long term growth) so when opportunities arise and are identified as chances to build pipelines of passive income, you will be ready. Also, it might be good to have money to fall back on during hard times. However, whether you earn $200 or $2,000, pay your future self first even when it's hard or less than 10% because it will pay off. Imagine if every paycheck you received for the last 5 years you managed to save a percentage of 10%. Even if you did not have a use for it immediately. How different might life look today? The habit of saving develops self control. It is how you reclaim caution from the emotions of stress, emergencies, and paycheck-to-paycheck living. Though, you will eventually want your currency to move into channels that consistently bring you more cash flow above the rate of inflation. (Inflation- A general increase in cost of living and a decrease in the purchasing power of money overtime.)

2. Gold Works for the Wise Owner Who Invests It Carefully and Finds For It Profitable Employment.
Money sitting still loses value overtime due to inflation even if you save a lot of it. Eventually, you want to learn how to invest your money into assets or vehicles that grow your money above the rate of depreciation consistently. When invested wisely, it can grow quietly in the background. Investment is a necessary skill of life and doesn't just mean material things. Investment is education, people, time, health, value, spirituality, and fulfillment. Investment has a payout no matter what you do. It's best practice to be wise about what you give your time and attention to because investments can give you negative returns too. It's not always in money, but negative consequences or outcomes from bad choices in people, friends, and business partners that can have lasting impact. Contrarily, a positive investment is in yourself and in those same subjects that give you a clear positive return. This could mean learning profitable skills that increase your value, positive affirmations for your mind/spirit, Meditation (E-book in our shop) long-term index funds, retirement plans, day trading, real estate, e-commerce, alignment with positive people or another business that produces income. The more you educate or invest in yourself and your health, the more profitable and enduring you can become to personify Live Well and Play Smart. The goal is not just to earn money; but to create money systems that earn for you and live a long, positive, and healthy life so you and your family can enjoy it. Money should eventually work for you when you sleep with the right systems in place. One day you might not want to work, or you may want to pursue a life mission that gives back or helps build a family legacy. Cash Flow and passive income allows you to build a life that doesn't revolve around work, money and the rat race; but something more. A purpose beyond work. Live Well and Play Smart.

3. Gold is Protected When Guided by Advice from the Experienced.

Proverbs 15:22: "Plans fail for lack of counsel, but with many advisers they succeed". 
Now, before you risk your investment capital that you’ve worked so hard to build over time you will need discernment. Learn from those who already walked the path you’re trying to walk and are successful. Seek wise counsel. Furthermore, look for those who have a proven track record of their success, both past and current in areas you want to win in. This is what's called social proof. Listening and imitating those who have social proof is invaluable. Especially in the management and growth of money. A conversation or apprenticeship with a person or group knowledgeable and willing to add value to you can prevent years of struggle and failure. It can save you from untold loss financially, romantically, business wise or generally. Wisdom is an investment that pays infinite positive returns when you can identify it. Always remember to give value back to those who saw potential in you and to pay it forward to others when the tables turn.

4. Gold Slips Away from Those Who Invest in What They Do Not Understand.
If you don’t fully understand how an investment makes money, then you cannot protect your money with certainty. Many people lose wealth because they chase hype or things that sound good: Crypto tips, business fads, or “get rich quick schemes.” Scammers and Con artist can make things sound beautiful and paint awesome spectacles that draw you in...However, under close scrutiny or careful review by someone of more experience, they may reveal traps and errors you missed or can not see for Fear of Missing Out. The rule is simple: If you can’t explain it simply, don’t put your money in it. Understanding equals security. Proper education lowers risk of loss and protects your investments.

5. Gold Flees from Those Who Chase Get-Rich-Quick Schemes.
There is no magic method to wealth but there are proven blueprints. Wealth is the result of consistent habits, systems, knowledge, wisdom, guidance, patience, and good counsel rendered over time. The person who respects time, invest in themselves, and surrounds them self with winners becomes wealthy and catches the wave of good fortune. The person who isn't mindful and careless how they structure their life will eventually squander their opportunities and end up with nothing in the end for lack of wisdom. "In all your getting, get wisdom." The book emphasizes this point repeatedly.

Imagine yourself five years from now. Will you be looking back wishing you started building investment capital today, or will you be grateful you took control now? Wealth is not about luck, it’s about consistency, cash flow and execution. The future version of you is depending on the decisions you make right now. Regards, we are here for you.

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