Building wealth requires principles and tradeoffs if one wants to make it. It is important to master these principles and sacrifice you have to make. This is true irrespective of whether you are a salaried worker or an entrepreneur. The first principle one has to be aware of is that of accumulation or compounding. It is interesting to note that anybody with high school education studied compound interest and its calculation. But, how many people use this principle in their day-to-day lives? Many people generally wait to hear a magic word on how to get rich when they attend seminars. If you want to be rich, you must first spend some years accumulating money by spending less than you make. The tradeoff for this is sacrifice of denying yourself of things. This is a common sense which everybody should know, but only a few people can make the needed sacrifice. In my next posts, I will use simple calculations to demonstrate this principle.
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