Exposed! Rules to break to Stay Wealthy

Being factual is fine, but most people fail to believe some laid rules need to be bent or even broken at times to get and stay wealthy. First learn these rules, then break them.

Shemin, author of "How Come That Idiot's Rich and I'm not?" feels there are two positions when it comes to wealth: “right side up and broke”, or “upside down and rich”. He prefers upside down.

The best way to build and maintain wealth, is by breaking the rules you think and hear about when building wealth, as believed by many.

Following are seven rules worth breaking -- in upside-down order;

7. Before investing, learn to Avoid Mistakes

Invest, but avoid mistakes

The problem here: Fear causes inaction. "Everything in life has a risk and a cost, for both doing and not doing it. Rich idiots focus on the risk of not doing something." Most people don't get started on network marketing, stock market or real estate investing, because they're so scared of making mistakes, they're overwhelmed.

"Of course you should expect to make mistakes when you start investing," most entrepreneurs agrees. "But if you start with small amounts, any mistakes won't hurt you too bad. Plus, any mistakes can be mitigated by time."

Also read: Startup financial steps many Ignore

6. Don't ask for help

Don't ask for help

"We're taught from an early age that you've got to do everything yourself and that if you ask for help, something's wrong…that’s dumb. Yet, getting help is critical to most people's success. "Getting rich is a team sport."

From selecting the best stocks to the best mortgage, trying to figure out everything yourself is stressful and won't likely result in the best decisions. "Everybody's good at a few things and not good at a lot of things."

M. Nora Klaver, author of "Mayday! Asking for Help in Times of Need," says, "Asking for help is actually a sign of strength. It shows that you recognize the gap between where you are and where you want to be -- financially and otherwise -- and have both the smarts and guts to take action and seek others' support."
Also read: How to build wealth choosing the right partner

5. Choose your mentor’s advice

Choose your mentor's advice

Of course, asking for help wisely means asking the right people. Get referrals, and in interviewing potential financial advisers, "ask how they're getting paid.” Though, you really have to be careful about who you're dealing with.

Michael Edesess, author of "The Big Investment Lie: What Your Financial Adviser Doesn't Want You to Know," says, "The path your financial (adviser) advises is the one that will make them the most money. Money they make is money you lose. It's that simple."

"Listen to your mentor, but weigh and make your decisions

Also read:  How to build wealth from good stable network

4. Try to time the market

Try to time the market

Often time, people say that the financial or real estate markets are down, making it a horrible time for investing. Sure, if you're trying to make money within 90 days, maybe it's not the best time to invest. "But if your goal is 5, 10, 20 years away, then, over time the market's going to do well.

"Nobody can effectively time the market.
Also read: How to build wealth from blogging

3. Don't invest until you have the money

Break this rule and be wealthy

Certainly most finance experts would not agree. Its wisest to have at least half the money needed to venture into an investment. Still believe the fact that ones can still take a smart risk of getting a loan. At times, loans at banks may not be giving, if there is no strict trust regarding past credit history. Even the richest billionaire today, still take loans from banks to set up a new financial investment after weighing the business risks.

"No matter the decision, one can still invest without having the money, though, it’s the toughest decision to make."

Also read: How to save for wealth

2. Don't get into debt

Stay out of debt

"Most people think debt is debt," certainly.  But no matter how hard you work, your money is going to work harder for you if you put it in the right things." A lot of people say credit cards are bad, right; but, always. It's discipline. It’s a risk especially in real estate business, and it can be paid off every month."

Also, for students with no other choice, but paying for their educations with student loans, debt is not a bad financial decision. One might believe they would enter an industry where they would almost assuredly be able to pay off their debt.

"Sometimes that debt is just a hoist, to let you get to the next level."

Also read: How to manage debt of any size

1. Have a plan

Have a plan

"Has anything in life not worked out as you planned? As a business person, that should happen almost every time, so you'd better be prepared. To most people, that means having a plan A. But to me, it's best to have a plan B and plan C, and sometimes even a plan D and plan E for when things don't work out as planned.

"A plan should be dynamic and will change as you grow in wisdom."

There will always be an abundance of opportunities that will present themselves to you. If you have your mindset bent only on your written plans, you could miss out on a faster opportunity.

Also read: Obvious Signs you will be wealthy

Now, you know the rules, don't just keep to yourself...someone might be in need too, do share!

For more wealth tips, kindly follow us on Twitter @gistwealth and Facebook at Gistwealth.

More on GistWealth:

How to build wealth as a couple

How to build wealth as an NYSC corper

How to build wealth on a small salary

How to build wealth from your hobbies

How to build wealth from scratch