Law 25: Your wealth strategy: The road map that will lead you to money and wealth.

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To be wealthy and successful you need to roll out a strategy, a plan, a line of attack based on what you know and are learning now to take you to your destination.

Don’t live life by accident. Don’t be a person without direction. Follow a strategy and update it when necessary so as to make it.

So, in two stages, let us set up a strategy, based on all the 48 Laws here to be your template or guide.

The first is understanding exactly where you are now:

1. Know how much you earn.

The crux of this is that don’t spend more than you earn. Obvious? Not when people live beyond their means as if they were earning more than they actually are!

2. Know really exactly how much you spend. 

Determine precisely how much you must spend on every area of your life. It is this lack of planning which make people overspend. Include unforeseen expenses in your budget and keep it in a separate account. And always pay off your debts first.

3. Know your attitude to risk.

How much money can you comfortably ‘risk’ or speculate in your investment strategy?

4. Know your potential avenues to earn.

How many different ways can you think of to earn income, especially passive income?

5. Cash flow and capital growth.

Your cash flow will come from a salary or a dividend certain businesses, careers and investments will bring you. But assets such as property will give you capital growth. Both must be part of your strategy for great wealth.

The second step of your wealth strategy is to set it.

Make it a goal that you can review. As your income increases, raise the last three columns above but not column 2.

Be disciplined [Law 9] and stick to this template and it will give you durable wealth. Don’t hesitate to adjust the figures as necessary based on monthly income:

Earned income: £1,500 [after tax and N.I.] Total living allowance [spend including living, debt and contingency]: £975 [65%] Tithing [giving back]: £75 [5%] Total saved and never touched: £150 [10%] Total invested: £300 [20%]

Attitude to risk: 20% [total invested]. Although fairly safe, you can invest more if you are young, ambitious, and single. But if you are a little older and need stability, have children and commitments then add more of your earnings to your ‘total saved’ column.

Now decide where to donate your tithing, what high interest account to deposit your 10% in and what to invest your 20% in.

If you want to invest in property—recommended—hold your investment until it becomes large enough for that.

Perhaps you want to invest 50% in shares and 50% in property of your total invested in the first year? Perhaps 33% in a business, property and shares? Develop your strategy as the years and wealth increase. Don’t change it at will. Give it the opportunity to work!

Review your strategy and your finances each year. Open and update it and do a financial check-up to see where you are [Law 42]. Compare this year’s strategy to last year’s to ensure you are making progress in the right direction.