10 laws of wealth


Individuals who become successful and wealthy in life have figured out how to utilize the cash to further their potential benefit. They do this by observing certain laws that have been passed down all through the ages. Therefore, they can amass riches and appreciate the money related opportunities that those stores give them.

Ineffective individuals, in any case, or the individuals who will, in general, stay poor in spite of having numerous chances to completely change them, don’t keep similar laws that wealthy individuals do.

Indeed, in most cases, the specific inverse laws are followed creating the specific inverse outcomes that rich individuals experience. So as opposed to building riches, such people will in general abatement their riches and become captives to obligations that they can never bear to reimburse.

What this all methods is that, with regards to cash, you truly have just two alternatives: Either you keep the correct laws and bring in cash, or you observe inappropriate laws and lose cash. There is no center ground.

In this article, we will be taking a gander at the 20 laws of cash as proposed by Brian Tracy. So we should begin with the primary law: the law of circumstances and logical results.


The law of expectations is strongly influenced by the previous law, the law of belief, because it states that whatever you expect to happen in your life eventually becomes your own self-fulfilling prophecy.
This means that you are always acting as your own fortune teller by the way that you think and talk about how things are going to turn out.
When you expect good things to happen to you, good things usually do happen. When you expect bad things to happen to you, bad things usually happen.

You are always acting as your own fortune teller as a result of the expectations you hold.
When it comes to money, wealthy people expect to live lives of financial abundance and have their net worth increase year after year. Whereas most people who are not wealthy, expect to struggle for their money and just earn enough to get by.
The beauty of this law is that your expectations are largely under your control. This means that you can decide whether you expect to be poor or whether you expect to be prosperous.

What can you imagine?
Your expectations about money are determined, and limited, by your imagination.
Some people have a very vivid imagination and can clearly envisage their future life. Whether that be earning a six-figure salary, or simply amassing material wealth, they can picture what they want and are willing to work towards its achievement because one day they expect to get it.

Wealthy people have a clear idea of what they want and expect to get it.
Unsuccessful people, however, generally have a very limited imagination which causes them to focus their attention on the present moment and the satisfaction of their immediate needs.
As a result, their financial expectations also become limited, which ultimately becomes a self-fulfilling prophecy that they live by.
If you want to bring financial abundance into your life you, therefore, need to think big and expect the best, because what you expect to happen will largely determine the type of things that you try to achieve.

Richard Branson, for example, a billionaire from the UK, has dreamed big his entire life. He dreamed of setting up a record label, owning retail stores throughout the world, and owning an airline. His latest ambition is to make space tourism affordable for the general public.
Richard Branson dreamed big his entire life. He’s now one of the richest men in the world.
With low expectations, Richar

d Branson would probably never even have thought of achieving any of these things.
This is why having high expectations are so important if you want to become well-off in life, because as long as you think that something is not possible for you, you will never try your hardest to achieve it. If you ever try at all.

The expectations you have determine what you think will happen to you in your life, which then determines the aims and objectives that you work to achieve.
The higher your expectations are, the greater a level of wealth that you are likely to pursue. But having high expectations is not enough, as those who only dream of riches without being willing to work hard, will remain just that, dreamers.


The law of attraction states that you attract into your life the people, circumstances, and events that are aligned with your dominant thoughts.
What you think about throughout the day has a powerful influence on what you actually achieve and experience.
In other words, the law of attraction states that the life you are living today is a reflection of the thoughts that you have had in the past. Therefore, according to this law, if you are able to change your thoughts you will be able to change your life.
Out of all the 10 laws of money, the law of attraction is perhaps the most famous and well known due to the movie “The Secret“.
Attraction in action:

There is no doubt that the law of attraction is an important factor in determining whether you have a lot of money sitting in your bank account, or whether you become penniless instead.
Whether this is due to some mystical force, or due to a change in your thought patterns and the resulting actions you take, doesn’t really matter. The results are still the same.
If you think rich, then chances are that one day you will become rich, because you will start to attract the things into your life that will help you to make money rather than lose it.
If you think rich you will start to attract the things into your life that will help you to become rich.
This “attraction” could come in the form of information, such as through reading books on money, or it might come in the form of assistance, such as by meeting people who can help you to achieve your long term financial goals.

Through the thoughts that you have and the resulting actions that you take, the law of attraction will eventually bring into your life whatever it is that you are most focused on.
If, however, you think poor, you will invariably become poor because chances are that you will be attracting into your life the things that are going to take your money away from you.
If you focus on poverty you will tend to engage in actions that attract poverty to you.
This may come in the form of being careless with your money and wasting it, accumulating credit card debt or taking out high-interest loans to purchase liabilities that quickly become worthless.
As long as you focus on being broke, then ultimately, that is what you will attract into your life.

Use the law of attraction to attract more money into your life by focusing your attention on things that bring you closer towards the achievement of your financial goals.
This doesn’t mean that you should ignore the bad things that happen to you, but rather, that your dominant thoughts should be on what you want to happen and not on what you don’t.


The law of correspondence states that your outer world is a reflection of your inner world and corresponds with your dominant thoughts.
This law explains most of the reasons why people become successful or unsuccessful, are happy or unhappy or are wealthy or poor. Their outer world reflects their most dominant inner thoughts.
Your outer world is a reflection of your inner world.
Ultimately, what this means when it comes to your financial situation, is that nothing will change for you on the outside until it first changes for you on the inside. Inside your mind.

The same applies to any other area of your life. If you want

to improve the results you are getting in the outside world, you first need to change the thoughts that you have in your internal world.
Your financial mental equivalent
A world on the outside that is a reflection of a person’s internal world is called a “mental equivalent”. This simply means that their external world is equivalent to their internal world.
Everyone should, therefore, aim to create a mental equivalent inside their mind of the things that they would like to experience in the outside world because unless you create it in your mind first, it cannot be created outside of it.
This is done by exposing yourself to sources of information that will help you to achieve your financial goals and avoiding negative sources of information that fill you with doom, gloom and self-doubt.

Have you ever wondered what sort of mental equivalent is created by watching the news every day?
The law of correspondence can also be used as a useful aid to help you better understand other people.
For example, if someone is heavily in debt then this is likely to indicate that they are not very good at managing their money, and so they are also probably not very good at managing other areas of their life such as their health or their career.
As you move along on your journey towards financial independence it is worth keeping the law of correspondence in mind, as it will allow you to identify those individuals who may be able to help you to achieve your financial goals and those who could make it more difficult for you to do so.
Wealth creation begins in your mind, and the results are reflected in the reality that you see and experience. So be careful of the things that you expose yourself to as they will all influence your internal mental environment, some for the better and some for the worse.


The law of abundance states that we live in an abundant universe in which there is plenty of money available for anyone who wants it, that is of course, providing that you are willing to do what it takes to earn that money.
In today’s digital age the law of abundance has become more relevant than ever, as now, most of the money in the world exists only in the digital realm as numbers on a computer screen.
The law of abundance states that there is more than enough wealth for everyone to enjoy.
A good example of an excellent understanding of the law of abundance can be found in banking institutions.
When banks first started hundreds of years ago, they provided people with a safe place to keep their gold coins or gold bars in exchange for a fee.

A person would go to a bank, give that bank their gold or valuables, and in return receive a paper receipt. If they ever wanted to collect their gold, they would give the bank their receipt and receive their gold.
But the banks soon realized that only a few people would come to collect their gold at any one time. This meant that the rest of the gold they were looking after was sitting there doing nothing.
Fractional reserve banking arose from the realization that only a small percentage of customers would claim their gold at any one time.

So the banks decided to use the gold that they were looking after to make themselves more money by investing it in other things or loaning it out to people at interest.
As long as all the bank’s customers didn’t come to the bank at once, the bank would always have enough gold to give back to its customers should they ask for it.
Today, we call this fractional reserve banking and in the digital age it is easier to do than ever before. Banks can now lend out virtually unlimited amounts of money because unlike physical gold, money that exists on a computer screen is limitless.
In today’s digital age the law of abundance is more true than it has ever been.
As a result, lending institutions are able to make tremendous amounts of money, as essentially, they can lend out money to borrowers which they do not really have and that doesn’t really exist.

Summary :
Since we entered the digital age there has been an endless supply of money being pumped around the world each and every day.
Money is not a scarce resource, what is scarce is having the correct knowledge and skills needed to acquire large sums of money. Therefore, the more you are able to develop your human capital, the more money you are likely to receive in return for your efforts.


The law of exchange states that money is a medium through which people exchange their labor in the production of goods and services for the goods and services of others.
Money is a medium through which people exchange their goods and services for the goods and services of others.
In other words, this law states that people receive an income for doing or producing something that other people value and are willing to pay for.

Therefore, the higher the value of the service or product that you provide, the more money that you will receive in exchange for it.
Before there was money
Before money was invented people used to barter. This involved exchanging goods or services for other goods or services.
For example, if you came to my house to fix my leaking roof, then in exchange I would provide you with wood for your fireplace. This is called barter and is what people used to do before there was money.

As societies grew larger however, it became far more convenient for goods and services to be exchanged into a medium like coins. Coins could be accumulated and stored, and then later exchanged for the goods and services that you required.
Before there existed money people obtained the things they wanted by doing something for another person in exchange for that person doing something for them.
Today, we do exactly the same thing, only instead of using just coins, we now also use paper money and digital money in the form of credit cards or debit cards.
We work for a set amount of time and receive a set amount of money in return. We then use the money that we have earned to buy goods or services from other people who are also exchanging their goods or services into a medium which they will then use to buy goods and services from others.
In economics, the flow of goods and services in an economy is referred to as “real flows” and is said to exist in a “circular flow” because the income of one individual equates to the expense of another.

Value is proportional to reward
The law of exchange dictates that the amount of money you receive for a product or service depends on how valuable it is.
The more something is needed, the fewer people who have it, and the more important it is, the higher its value will be and the more money that you will get for it. This is the basic principle behind the law of supply and demand.
Value is largely determined by what someone is willing to pay for something, and can, therefore, vary depending on that person’s feelings, attitudes, and opinions of what you have to offer.
The more valuable something is perceived as being the more people will be willing to pay for it.

For some people, they may consider your product or service to be extremely valuable and so will be willing to pay a lot for it. Whilst others may consider it of no value, and so will pay you very little or nothing at all.
Generally speaking, there are three factors that determine value in the real world: the type of work you do, how well you do it, and the difficulty in finding what you do elsewhere.
If you undergo formal education to train yourself in a highly specialized field for example, you are likely to receive a high wage for it because not many other people can do what you do.
The more skilled a profession is, the fewer people that will be able to do it, and so the more you will get paid for it.
If, on the other hand, you work in a low skilled profession in which anyone can do what you do, then you are likely to receive a lower wage because competition from other workers drives down the value of your particular skill.

Summary :
In order to make more money, you must increase the value of what you do. This may mean increasing your knowledge, skills or changing your job.
Whatever you can do to add more value to others will increase the amount of money that you are able to earn in exchange for your time.
The highest-paid people in society continually improve what they do so that they can earn more money by offering products and services of increasingly greater value


The law of capital states that your most valuable asset in terms of cash flow is your physical and mental capital. Your earning ability.
If you are able to apply your earning ability to the production of valuable goods and services, you will have enough money to do all the things you want in life.
The purpose of a degree is to increase one’s human capital by developing specialized knowledge and skills that increase potential earning ability.
The amount of money you earn today is therefore a direct measure of the extent to which you have developed your earning ability. The higher your earning ability is, the more money you are likely to be making.
Time is your most precious resource
How much time you put into something largely determines your earning ability. If you have poor time management skills, for example, and so end up wasting your time on unproductive tasks, your time won’t be worth very much at all.

So at the end of the day your time is really all that you have to sell, and this is why you should make the most of it by avoiding squandering it on things that add no long term value to your life.
At the end of the day time is all that you have to sell, so be sure to make the most of it.
Importantly, value and time are closely interrelated, as in general, it can be stated that as time increases so does value.
Wine and cheese are both good examples of this principle, as the value of these two commodities increases with age. Although, it should be noted, that in some cases, such as the delivery of goods, less time can equal higher value.
If you want to make money and become wealthy, you must therefore be prepared to spend however long it takes to create something of high enough value that people want to buy.

You can, of course, spend less time creating things of lower value. But it should be remembered that as the value decreases so does consumer demand and the price that you are able to charge for your good or service.
Time & money can be spent or invested
Once time or money has been spent they are gone forever and you cannot get them back. You can, however, invest your time or money so that you receive more time or more money later on.
Time can be spent or invested. But once it’s gone, it’s gone for good.
If time or money is invested in learning new skills or knowledge, for example, you will increase your personal value, which will then increase your future earning ability and your cash flow.
This is why you should always invest a portion of your income each month into personal development so that you can work on becoming better at the things which are most important to you.

Summary :
One of your major purposes in life should be to increase your earning potential to receive the most amount of money possible in exchange for your time.
An effective way to do this is to identify the highest value uses of your time, and then focus more of your time on doing those things.
The more personal value that you are able to create for yourself the greater the value of the goods or services that you produce will be, and the greater the monetary value that you will receive in return.


The law of conservation states that it’s not how much money you make which determines your financial future, but rather, how much of your money you are able to keep.
Wealth is determined by how much of your money you are able to keep, not by how much you are able to make.
There are many people, for example, who make a lot of money over the course of their working life but because they do not manage their money well and spend it needlessly, they retire broke and poor.
On the other hand, there are people who do not make much money, but because they use their money wisely and save it, they are able to retire extremely wealthy and spend the rest of their days in comfort.

So if you want to achieve financial success in life, your aim must be to save more money than you spend, as otherwise, you will never be able to accumulate and grow wealth.
The difference between the rich & the poor
Financially successful people are experts at cutting costs and saving their money for the future. When they do spend money, they do so predominantly on assets (i.e., things that increase in value over time) rather than on liabilities (i.e., things that decrease in value over time).
This ensures that should the economy take a turn for the worse and/or they are made redundant and lose their job/business, they will always have something to fall back on.
Wealthy people are experts at cutting costs and saving money for a rainy day.
Funds which are set aside specifically for this purpose is known as an emergency fund, and usually entails savings of at least 6 months salary to provide enough money to continue your current standard of living whilst you look for employment.

People who are not financially successful, tend to do the exact opposite of those who are rich. They are experts at spending their money and ensuring that they have nothing left for the future. They live for today with little or no regard for their long term financial future.
When the economy turns bad or they lose their job, they find that they have nothing to fall back on except charity handouts or the streets.

Summary :
Wealth building occurs by accumulating as many assets as you can and reducing the number of financial obligations, or liabilities, that you have.
Anyone can become wealthy, even those on a low salary, providing that they are able to save more money than they spend. But if you spend more than you save, even a high salary won’t be enough to make you rich.


The law of cause and effect states that everything happens for a reason because there is a cause for every effect.
For every effect, there is a cause.
This is an extremely simple principle to understand, as it states that rich people are rich because they do things which make them rich, and poor people are poor because they do things which make them poor.
For example, a rich person may focus their efforts on accumulating assets, such as precious metals like gold and silver which increase in value over time.
Whilst poor people focus their efforts on accumulating liabilities, such as expensive electronic goods or flash cars that decrease in value over time.
This is the law of cause and effect. For everything that you do there is either a positive or negative outcome that comes as a direct result of the actions that you take.
Cause and effect in your life:

The law of cause and effect not only applies to your personal finances, but also to every other aspect of your life. How successful you are, for example, largely depends on the actions that you have taken in the past.
If you spend the majority of your time trying to become better at what you do, then the law of cause and effect dictates that your skills or knowledge will improve in proportion to the number of hours that you have invested into bettering yourself.
Your skills and knowledge will improve in direct proportion to the amount of time you spend trying to better yourself.
If, however, you spend the majority of your time watching TV and playing computer games, then the law of cause and effect dictates that the amount of failure you experience will be proportional to the amount of time that you spent having fun rather than working hard on things of long-term significance.
Once you start looking at things through the eyes of cause and effect, you will find that you start to see things a lot more clearly as your vision will no longer be clouded by delusions of chance, good luck, or bad luck.
As a result, you will realize that you are where you are due to your actions in the past and that where you will be in the future, will be determined by the actions that you take today.
Financial success is simply an effect that comes as a result of taking certain actions.
To become wealthy, you must, therefore, learn to identify the actions that will bring more money into your life, and then keep on repeating those actions until you achieve a level of wealth that satisfies you.


The law of belief states that whatever you believe in with feeling ultimately becomes the reality in which you will live.
This law also states that you always act in a way that is consistent with your beliefs, especially, those which you have about yourself.

The beliefs you have determine the actions you take which then determine the results that you are

likely to get.
The beliefs you have about money act like filters in your brain. They allow you to see what you believe in, and hide from you the things which you do not believe in. This in turn influences the type of actions you take, and therefore, the amount of money that you are likely to make.

For example, suppose that a person believes they will always be poor and that there is nothing they can do to earn some extra cash for themselves.
Such a belief is likely to limit that person’s actions in a way that keeps them poor and blinds them to any financial opportunities that arise. As a result, they will probably struggle financially for the rest of their life locked in a mindset that keeps them poor.

If you believe that you will always be poor and that there are no opportunities for you, then those beliefs will lead to actions that will make those beliefs come true.
But now suppose that person began to believe that one day they would be earning a high income. What do you think would happen? Since they are now no longer limited by their previous belief, they are likely to take actions which they never took before.

For example, rather than wasting their money on things they don’t really need, they choose to save or invest their money and learn how to use it more wisely.
Consequently, as a direct result of their belief, they vastly increase their chance of achieving their financial goals.
Do not underestimate the beliefs that you have about money and your current and future financial situation. Positive beliefs are needed to become wealthy, whilst negative self-limiting beliefs will keep you poor.


Out of all the 10 laws of money, Parkinson’s law is one of the most important to understand in terms of your long term financial future.
This law simply states that as your income increases so do your expenses, and helps to explain why so many people retire poor despite earning a good salary throughout the course of their working life.

Parkinson’s law states that as your income increases so do your expenses.
You can probably find evidence of Parkinson’s law in your own life, as today you are most likely earning many times more than what you were at your first job.
Yet, despite this pay increase, there always seems to be a need to spend every penny that you have in order to support your current lifestyle.
No matter how much money you make it never seems to be enough, and you always find yourself in more or less the same financial situation as you were before.
Breaking Parkinson’s law
In order to become financially independent you must make a conscious effort to break Parkinson’s law.

This is done by developing enough willpower to resist the urge to spend everything you earn and developing the discipline to save that money instead.
As long as you obey Parkinson’s law, you will never become financially successful in life.
You can break Parkinson’s law by increasing your expenses at a slower rate than your income increases.
One of the best ways to break Parkinson’s law is to increase your expenses at a slower rate than your income increases, and then to save or invest the difference.
If you are able to separate your income and expenses in this way, you will be able to increase your standard of living whilst ensuring that your future remains a financially secure one.

So from this point forward be aware of Parkinson’s law and make an effort to save a portion of any salary increase you receive, rather than falling into the habit of spending more just because you are making more.

Summary :
When people earn more money they tend to spend more money, which subsequently keeps them in roughly the same financial situation throughout their life.
In order to become rich, you must therefore develop the ability to accumulate wealth by ensuring that your expenses increase at a slower rate than your income increases.

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