To be rich you must master the language of money.
What this means is that you must be able to read a balance sheet and
understand it; you must know the difference between margin and profit, the
lifetime values of your clients, your net worth (watch whether it is going up
year on year or down), your time worth on an hourly basis, the total running
costs to your business, sensitivity analysis, and the difference between an
asset and a liability.
You must carefully choose the books and publications you read, the websites
you visit, your homepage and the people you spend the most time with.
For the more you’re fluent in the language of finance, the better
you will be at it and the wealthier you will become.
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