The rules of wealth : a personal code for prosperity and plenty

273 Pages·2015·2.87 MB·English

Untitled-2 2 02/06/15 6:56 pm
THE
RULES
Of
WEaLTH
A01_TEMP6439_04_SE_FM.indd 1 15/04/15 11:13 pm
A01_TEMP6439_04_SE_FM.indd 2 15/04/15 11:13 pm
THE
RULES
Of
WEaLTH
a personal code for
prosperity and plenty
RICHaRD TEMPLaR
A01_TEMP6439_04_SE_FM.indd 3 15/04/15 11:13 pm
Pearson education Limited
Edinburgh Gate
Harlow CM20 2JE
Tel: [phone]
Fax: [phone]
Website: www.pearson.com/uk
First published 2007 (print)
Second edition published 2012 (print and electronic)
Third edition published 2013 (print)
this edition published 2015 (print and electronic)
© Richard Templar 2007 (print)
© Richard Templar and Pearson Education Limited 2012 (print and electronic),
2013 (print)
© Richard Templar 2015 (print and electronic)
The right of Richard Templar to be identified as author of this work has been asserted by
him in accordance with the Copyright, Designs and Patents Act 1988.
Pearson Education is not responsible for the content of third-party internet sites.
ISBN: 978-1-292-08643-9 (print)
978-1-292-08645-3 (PDF)
978-1-292-08646-0 (ePub)
978-1-292-08644-6 (eText)
British Library Cataloguing-in-Publication Data
A catalogue record for the print edition is available from the British Library
Library of Congress Cataloging-in-Publication Data
A catalog record for the print edition is available from the Library of Congress
The print publication is protected by copyright. Prior to any prohibited reproduction,
storage in a retrieval system, distribution or transmission in any form or by any means,
electronic, mechanical, recording or otherwise, permission should be obtained from
the publisher or, where applicable, a licence permitting restricted copying in the United
Kingdom should be obtained from the Copyright Licensing Agency Ltd, Saffron House,
6-10 Kirby Street, London EC1N 8TS.
The ePublication is protected by copyright and must not be copied, reproduced,
transferred, distributed, leased, licensed or publicly performed or used in any way
except as specifically permitted in writing by the publishers, as allowed under the terms
and conditions under which it was purchased, or as strictly permitted by applicable
copyright law. Any unauthorised distribution or use of this text may be a direct
infringement of the author’s and the publishers’ rights and those responsible may be
liable in law accordingly.
10 9 8 7 6 5 4 3 2 1
19 18 17 16 15
Cover design by Nick Redeyoff
Print edition typeset in 10.5/12pt ITC Berkeley Oldstyle Std by 71
Print edition printed and bound in Great Britain by Clays Ltd, Bungay, Suffolk
NOTE THAT ANY PAGE CROSS REFERENCES REFER TO THE PRINT EDITION
A01_TEMP6439_04_SE_FM.indd 4 15/04/15 11:13 pm
Contents
Introduction xi
Acknowledgements 1
Thinking wealthy 2
1 Anybody can be wealthy – you just need to apply yourself 4
2 Decide on your definition of wealth 6
3 Set your objectives 8
4 Keep it under your hat 10
5 Most people are too lazy to be wealthy 12
6 Get a reality check 14
7 Understand your money beliefs and where they come from 16
8 Understand that wealth is a consequence, not a reward 18
9 Decide what you want money for 20
10 Understand that money begets money 22
11 Calculate the net return 24
12 If you see money as the solution you’ll find it becomes the
problem 26
13 You can make lots of money, you can enjoy your job, and you can
sleep nights 28
14 Don’t make money by being bad 30
15 Money and happiness – understand their relationship 32
16 Know the difference between price and value 34
17 Know how the wealthy think 36
CONTENTS v
A01_TEMP6439_04_SE_FM.indd 5 15/04/15 11:13 pm
18 Don’t envy what others have 38
19 It’s harder to manage yourself than it is to manage your money 40
Getting wealthy 42
20 You’ve got to know where you are before you start 44
21 You’ve got to have a plan 46
22 Get your finances under control 48
23 Insurance pays someone, and odds are it’s not you 50
24 Only by looking wealthy can you become wealthy 52
25 Speculate to accumulate (no, this isn’t gambling) 54
26 Decide your attitude to risk 56
27 Think through the alternatives to taking a risk 58
28 If you don’t trust someone, don’t do business with them 60
29 It’s never too late to start getting wealthy 62
30 Start saving young (or teach your kids this one if it’s too late
for you) 64
31 Understand that your financial needs change at different stages
of your life 66
32 You have to work hard to get rich enough not to have to
work hard 68
33 Learn the art of deal making 70
34 Learn the art of negotiating 72
35 Small economies won’t make you wealthy but they will make
you miserable 74
36 Real wealth comes from deals not fees 76
37 Understand that working for others won’t necessarily make you
rich – but it might 78
vi CONTENTS
A01_TEMP6439_04_SE_FM.indd 6 15/04/15 11:13 pm
38 Don’t waste time procrastinating – make money decisions
quickly 80
39 Work as if you didn’t need the money 82
40 Spend less than you earn 84
41 Don’t borrow money – unless you really, really have to 86
42 Consider consolidating debts 88
43 Cultivate a skill and it’ll repay you over and over again 90
44 Pay off your loans and debts as a priority 92
45 Don’t be too busy earning a living to make some money 94
46 Save in big chunks – or should you? 96
47 Don’t rent, buy 98
48 Understand what investing really means 100
49 Build a bit of capital then invest it wisely 102
50 Understand that property, in the long run, will not outpace
shares 104
51 Master the art of selling 106
52 See yourself as others do 108
53 Don’t believe you can always win 110
54 Don’t pick stocks yourself if you don’t know what you’re doing 112
55 Understand how the stock market really works 114
56 Only buy shares (or anything) you can understand 116
57 Use your head 118
58 By all means, use the investment professionals (but don’t be used
by them) 120
59 If you are going to get financial advice, pay for it 122
60 Don’t fiddle 124
61 Think long term 126
CONTENTS vi i
A01_TEMP6439_04_SE_FM.indd 7 15/04/15 11:13 pm
62 Have a set time of day to work on your wealth strategy 128
63 Pay attention to detail 130
64 Create new income streams 132
65 Learn to play ‘What if?’ 134
66 Control spending impulses 136
67 Don’t answer ads that promise get-rich-quick schemes – it won’t be
you who gets rich quick 138
68 There are no secrets 140
69 Don’t just read this – do something 142
Getting even wealthier 144
70 Carry out a finance health check regularly 146
71 Get some money mentors 148
72 Play your hunches 150
73 Don’t sit back 152
74 Get someone to do the stuff you can’t 154
75 Know yourself – solo, duo or team player 156
76 Look for the hidden asset/opportunity 158
77 Don’t try to get rich too quickly 160
78 Always ask what’s in it for them 162
79 Make your money work for you 164
80 Know when to let go of investments 166
81 Know your own style 168
82 Know why you should be able to read a balance sheet – and how 170
83 Be one step ahead of your tax collector 172
84 Learn how to make your assets work for you 174
vi i i CONTENTS
A01_TEMP6439_04_SE_FM.indd 8 15/04/15 11:13 pm
85 Don’t ever believe you’re only worth what you are being paid 176
86 Don’t follow the same route as everyone else 178
Staying wealthy 180
87 Shop for quality 182
88 Check the small print 184
89 Don’t spend it before you’ve got it 186
90 Put something aside for your old age – no, more than that! 188
91 P ut something aside for emergencies/rainy days – the
contingency fund 190
92 You paid what for it? How to shop around 192
93 Never borrow money from friends or family (but you can allow
them to invest) 194
94 Don’t surrender equity 196
95 Know when to stop 198
Sharing your wealth 200
96 Use your wealth wisely 202
97 N ever lend money to friends or family unless you are prepared to
write it off 204
98 Don’t lend, take equities 206
99 You really, really can’t take it with you 208
100 Know when/how to say no – and yes 210
101 F ind ways to give people money without them feeling they are
in your debt 212
102 D on’t over-protect your children from the valuable experience
of poverty 214
CONTENTS ix
A01_TEMP6439_04_SE_FM.indd 9 15/04/15 11:13 pm