Rev Walter Mwambazi's Blog
One of the most cardinal factors that can ensure our shot at success and see it manifest is by having the right mindset. This word “mindset” is also known as a paradigm, a term popularized by the late author Steve Covey in his runaway bestseller “The 7 Habits of Highly Effective People”. For those not familiar with the term, a paradigm can be defined as the way one looks at something that will then go on to affect how they think, say and behave. In Charismatic Christian circles I would term it a stronghold.
There is nothing more powerful than how one sees themselves as perception always determines reality. Better put, attitude determines altitude. Your mindset (paradigm, stronghold) will always affect your thinking, how you think affects your feelings, what you feel taints your language (words), how you speak determines what you do, what you do has major impact on your results. Thus, the choices we make in life always stem from our mindset. So put it this way, thoughts – feelings – action – results.
Now, if we want to be successful in our endeavors, we have to get our minds to think right. It is very important that we get your mindset into the right mode for money creation and money retention. Hence it is not just about creating the money through activities, but it is also creating the mindset required to retain the money.
Money has its own laws too and if they are understood, obeyed and utilized, you will most certainly see more money come into your life and be retained. As we go about in life building and establishing our financial future and wealth, we need to also utilize the laws of money so as to retain that money once it comes our way.
With that said, here is an overview and summary of the 18 Laws of Money and a brief explanation of what each law is about. We will then be running a detailed series on each one of these laws.
1. The Law of Reciprocity
You reap what you sow! Every cause has an effect and every effect is brought about by a cause. All results are born of actions, all actions of feelings, all feelings of emotions, all emotions of thoughts! Thoughts have the power to create or destroy.
2. The Law of Belief
You always become whatever you believe you are. In order to achieve anything of substance, you must transit through these three states. Be – Your internal state of being must see the result you want, Do – You must start to do all the actions that will lead to that desired result, Have – Finally it is inevitable that you will achieve what you desire, it MUST happen!
3. The Law of Expectation
Whatever you expect with confidence – will happen! It is for this reason that you need to deal with changing mindsets or paradigms. A Paradigm is defined as a way of seeing something (normally limited) that influences how we act, think and behave. Many are loaded with what is referred to as an “Employee” paradigm that stops them from ever pursuing and achieving their dreams. Environment also greatly affects how we view money and how we behave like in front of it!
4. The Law of Attraction
You always attract what is in harmony with your thinking or thoughts. Take Stock, All the achievements in your life? – Take credit for them, All the failures and shortfalls? – Take responsibility. In order to attract the right things, you must become the right thing. Be what you want to see – never the other way around.
5. The Law of Correspondence
Your outer world is a mirror of your inner world. The roots determine the fruit. Your station in life is in correspondence with your inner world. Again, if you want to change your outer world, change your inner world. The future is in effect a blank cheque, you decide how much you are worth and that is what life will hand to you!
6. The Law of Abundance
Money is in abundance and more than enough exists for us all, but to acquire it, one must observe and follow the laws governing its acquisition and retention. The universe is laden with all that God prepared beforehand and provisioned in your future. It is abundantly there, all you need to do is take action, and the resources will come!
7. The Law of Exchange
Throughout life, we exchange our labor for goods and services. Money is the medium of exchange by which this transaction is done. Money is the measure of value people place on goods and/or services. Your labor is viewed as a value/cost to someone else. The money you earn is the measure of the value people place on the abilities, skills, goods or services you offer. To increase the income you earn, you must increase the value you are putting in. Leverage your earning ability by improving yourself continually.
8. The Law of Capital
Your greatest assets in terms of cash flow are your physical and mental capital. Your most precious resource is your time. Time and money can be either wasted or invested. Learn to budget your time like money. Use a diary and a planner. Wherever you invest your time most is where you get the greatest return. The best investment is always to increase your earning abilities by investing in yourself (3% of your income). Always look for ways to increase your Return on Equity or Energy (ROE). This is done by improving your mental and emotional capital.
9. The Law of Time Perspective
The most successful people learn that the greatest achievements come from day to day activities aimed for the future – not for the immediate. Sacrifice today and be rewarded tomorrow. Be willing to accept that some actions today will only begin to bear fruit 10, 15 or even 20 years in the future. Others set in motion actions that they may not even see the results in their lifetimes.
10. The Law of Saving
Only by saving regularly will you have set up the foundation that leads you to financial prosperity. Never spend this money on anything other than investing it – period. Pay yourself first – secure your future. Invest where your money is safe and guarantees good returns. Increase your financial education in order to know how best to invest your money (Increase your financial intelligence).
11. The Law of Conservation
It is never how much you make but rather how much you get to keep that determines your financial future. In order to determine our accumulated wealth we need to do the following. Firstly – Work out your net worth (Assets vs. Liabilities – If positive or negative then that is your current value). Secondly – Divide that value by number of years worked. This is how much you have accumulated. Happy with the result? If not, then change what you are doing right now.
12. Parkinson’s Law
Expenses always rise to meet increased income! Financial independence and financial freedom come when we violate Parkinson’s law. Your expenses should never rise at the same level as your income, this is a sure fire way to secure your financial future within your working lifetime. Always invest 50% of the difference in extra income to maximize returns. Live on the remaining 50%.
13. The Law of Three
There are three legs of financial security, these being savings, insurance and investment. To be safe from financial volatility, always have between 2 – 6 months of normal expenses in liquid form – easily cashed out savings. Insure yourself adequately to cover yourself against any eventuality that you cannot pay for out of your normal account. Invest by accumulating assets until the passive income from them far exceed your regular reciprocal income.
14. The Law of Investing
Investigate before you invest. Always learn about what you plan to invest in before you do so – develop the habit of putting off financial decisions for 3 – 7 days before committing. The only thing that is easy about money is losing it. Only invest with experts who have a proven track record of success with their own money.
15. The Law of Compound Interest
Investing and compounding that investment over time will eventually make you rich.
16. The Law of Accumulation
Financial freedom is the result of years of accumulating small but vital actions/efforts over time which few ever see. As savings accumulate, your momentum will increase rapidly over time. (The start seems insignificant but with time the results are massive.)
17. The Law of Magnetism
The more money you save and accumulate, the more money you attract into your life. Money always goes where it is appreciated and properly utilized. A prosperity consciousness attracts money like iron filings to a magnet. It will always take money (value) to make money. What is money to you? A means to solve problems? A source of comfort? It is the means to and a remuneration for the giving of value through goods/services to others – the better, the more you accumulate
18. The Law of Accelerated Acceleration
The faster you accelerate toward financial freedom, the faster it comes toward you. 80% of your success will tend to come to you in the last 20% of your time invested – meaning only 20% of the results will be seen in the first 80% of the time invested! This is the reason why many quit early and fail to achieve success. Most people are always three feet from their proverbial gold when they throw in the towel.
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Rev Walter Mwambazi
Author of "The 7 Principles for Financial Prosperity", Life Coach, Facilitator, Peak Performance Coach, Digital Marketing Professional, Network Marketer, Health & Wellness Consultant, Pastor, Copy Writer, Motivation Speaker & Writer.