Money

With money you get people's respect and with your good behaviour you make a place in their hearts. Both of these are required to live a good life. 

Making money is everyone's dream in life. Its because money is very important in modern life. We should all attempt to earn as much money in life as possible. If you make more money than required then you can start using it to make others life better. 

Be careful, money can buy you only physical happiness like big house, big car, exotic holidays,  servants etc. but not inner happiness. At IFLC we have developed a wholesome life improvement model where we take care of all aspect of improving your life. While this section will help you acquire more physical happiness, other sections of IFLC will help you improve inner happiness.

In this world where respect, friendship, trust, help, sympathy, honesty are rare to find; money is the one thing that can help you buy imitation copies of these. And there is nothing wrong in earning money. When you have more money people will pay you respect, they will become your friends (or at least they will pretend to be your friend), they will show that they can be trusted, they will offer you help, they will offer you sympathy, and they will show honesty (though fake) to you. As I said earlier its not the real thing that you will get, just copies of it. 

At least when you have money you are getting something, go and ask a poor person; because they do not get even a fake copy of happiness. 

Contents

In this section we will discuss the following:

1. Money Checklist

2. Making Money

3. Saving Money

4. Growing Money

5. Money Rules

6. Money Duties

7. Money DO NOTs

8. How to build Generational Wealth

9. Typical break-up of Investment portfolio

10. Which Assets rich people hold

11. How Royals enjoy life

12. How Rich people enjoy life

13. How upper middle class people enjoy life

14. How middle class people enjoy life

15. How poor people enjoy life

16. Reference websites

Money Checklist

Please take a moment to check whether you have already completed these or not:

1. Do you have workplace Life Insurance. How much amount does it pay. Have you clearly indicated the nominees for it?

2. Do you have long-term sickness and illness, which will support you for more than 26-weeks of illness. generally companbies pay 70% of your monthly income under these circumstances. 

3. Do you have workplace Pension setup? Check where that Pension money is invested? It should be invested in profitable ETFs for it to give you maximum long term benefits.

4. Do you have setup ISA account for you and your spouse? Each of you can contribute £20,000 per year into it. This money can be invested in Stocks ISA or Index Funds. Which can grow compounded @ approx. rate of ~12% compounded pear year.

5. Have you setup Child ISA accounts for each of your children? This will help them buy their first house in future.

6. Have you purchased your house on loan and make sure that the interest rate is the minimum you are paying into it.

7. Check how much interest you are paying on any money you borrowed.

8. If you have BTL property then check if its giving you net profit monthly? And where is this profit invested.

9. If your net worth is more than £2M then plan to setup a Trust for your investments. Make sure to add your family members to it.

10. Make sure to write a Will.

11. Keep a tap on your extra expenses every month: Credit cards, Shopping, etc.

12. Protect your expenses on electricity, water wastage.

13. Are you reading daily finance articles to keep yourself up to date on money knowledge.

14. 
    

Making Money

To earn money you need to:

1. Improve your Intelligence Quotient (IQ)

2. Get good education that can get you a high paying job.

3. Learn skills that are in demand

4. Get a good job

5. Get promoted at work

Saving Money

To save money you need to:

1. Reduce your expenses

2. Do not buy stuff just to show off to others

3. Save money, at least 20% of your take home pay, every month

Growing Money

To rain money in your life you need to:

1. Invest money for growth in ISA, Stocks, Mutual funds, property

2. Start a business

3. Start a side hustle

Money saving, making Resources

• How to buy your first house

• Money Management

• 50 of the best funds and investment trusts

• Advertisement Tricks to be aware of

Further learning resources for money management

1. https://www.thisismoney.co.uk/money/index.html

2. https://www.dailymail.co.uk/money/index.html

3. https://www.investopedia.com/

4. https://finance.yahoo.com/

5. https://seekingalpha.com/

6. https://thehustle.co/

Money Rules

1. The main idea of this world is to extract money from your pocket into their pocket

2. Advertisement on TV, Social media, roads are all done so that you get fooled into spending money on the useless stuff they are selling.

3. The world will force you to buy liabilities in exchange for your assets.

4. Assets are things that increase in value over time; liabilities are those whose value falls as time passes.

5. Money is a tool, not a goal. It's a means to an end, not an end itself. 

6. The rich don't work for money; money works for them. 

7. Passive income is a powerful tool for financial freedom. 

8. Time is money. Use your time wisely and invest it in activities that generate income or improve your skills. 

9. The rich buy assets, the poor buy liabilities. Focus on acquiring assets that generate income. 

Money Duties

1. Save and invest 20% of your income.

2. Use tax saving methods to save money.

3. Reduce Tax burden

4. Get good education so you can get a very high paying job in future.

5. Get promoted at work so you can increase your paycheck.

6. Beware of impulse purchases. Think carefully before making a purchase, especially if it's not planned. 

7. Diversify your income streams. Don't rely solely on one source of income. 

8. Save for a rainy day. Build an emergency fund to cover unexpected expenses. 

9. Invest in yourself. Education and skill development are valuable investments. 

10. Avoid debt. If you must borrow money, do so wisely and pay it back as soon as possible. 

11. The power of compounding interest. Start investing early to take advantage of the power of compound interest. 

Money DO NOTs:

Do not do these things:

1. Don't overspend.

2. Don't neglect saving and investing.

3. Don't rely solely on one source of income.

4. Don't accumulate unnecessary debt.

5. Don't ignore financial planning.

6. Don't fall victim to impulse buying.

7. Don't underestimate the power of compound interest.

8. Don't avoid seeking professional financial advice.

How to build Generational Wealth:

Generational wealth refers to assets, financial resources, or valuable possessions that are passed down from one generation to the next. It includes investments, real estate, businesses, or other income-generating assets that provide financial security for future generations. Unlike wealth that is consumed in a single lifetime, generational wealth aims to ensure long-term stability and opportunities for children, grandchildren, and beyond.

The goal of generational wealth is not only to pass down financial assets but also to transfer knowledge, values, and financial literacy. This ensures that heirs can manage and grow the inherited resources responsibly.

Building generational wealth requires strategic planning, such as investing wisely, estate planning (e.g., wills, trusts), and protecting assets from unnecessary taxes or risks. It provides a foundation for future generations to achieve financial independence, pursue education, and maintain a higher quality of life, reducing the cycle of financial struggles.

1. Build a Strong Foundation

• Emergency Fund: Maintain 6-12 months of living expenses in a liquid and safe account.

• Insurance: Protect against unexpected events with life, health, and property insurance.

• Debt Management: Avoid high-interest debt and pay off existing liabilities strategically.

2. Invest in Long-Term Assets

• Equity Markets:

  • Focus on index funds/ETFs like S&P 500 or MSCI World for diversified exposure.

  • Include blue-chip dividend stocks to ensure steady returns.

  • Consider emerging markets for higher growth potential.

• Real Estate:

  • Invest in rental properties in high-growth areas for passive income.

  • Explore REITs (Real Estate Investment Trusts) for diversified real estate exposure.

• Alternative Investments:

  • Hedge against inflation with gold, silver, or commodities.

  • Allocate 5-10% to high-growth assets like cryptocurrencies or start-ups (via angel investing or venture funds).

• Bonds and Fixed Income:

  • Balance your portfolio with government or corporate bonds for stability.

3. Develop or Acquire Businesses

• Entrepreneurship: Build businesses in industries with sustainable growth (e.g., tech, healthcare, renewable energy).

• Private Equity: Invest in established businesses or franchises to generate cash flow.

4. Focus on Education and Skills Development

• Invest in your children’s education and financial literacy to prepare them to manage and grow wealth.

• Teach them about compound interest, budgeting, and responsible investing early on.

5. Create Passive Income Streams

• Build income sources that require minimal ongoing effort:

  • Dividend income

  • Rental properties

  • Royalties from intellectual property

  • Digital assets like websites or e-books.

6. Diversify Globally

• Avoid putting all your assets in one country’s economy or currency.

• Allocate investments across different geographies (e.g., U.S., Europe, Asia) for risk mitigation.

7. Protect and Transfer Wealth

• Estate Planning: Create a will, trust, or family office to ensure smooth wealth transfer.

• Tax Optimization: Use tax-advantaged accounts (e.g., ISAs, 401(k)s, Roth IRAs) and legal strategies to reduce tax burdens.

• Charitable Giving: Establish a charitable trust to secure tax benefits and leave a legacy.

8. Monitor and Rebalance

• Conduct annual portfolio reviews and rebalance based on:

  • Changes in market conditions

  • Life events (e.g., marriage, inheritance)

  • Risk tolerance as you age.

Mindset for Wealth Creation

• Patience and Discipline: Generational wealth isn’t built overnight; consistency matters.

• Teach Legacy Values: Ingrain the importance of hard work, saving, and smart investing into your children.

By following these steps, you create a well-rounded plan that not only grows wealth but ensures it benefits future generations.

Typical break-up of Investment portfolio

Which Assets rich people hold

Here’s a list of assets rich people hold which makes their future generations even more richer:

Real Estate

• Luxury homes

• Commercial properties

• Rental properties

• Land investments

Stocks and Securities

• Blue-chip stocks

• Dividend-paying stocks

• Index funds and ETFs

• Bonds

Private Equity and Venture Capital

• Startups

• Privately-held businesses

• Hedge funds

Businesses

• Ownership of companies

• Franchises

• Partnerships

Alternative Investments

• Art and collectibles

• Rare coins and stamps

• Wine and antiques

Precious Metals

• Gold

• Silver

• Platinum

Cryptocurrencies

• Bitcoin

• Ethereum

• Other altcoins

Luxury Assets

• High-end cars

• Yachts

• Jewelry

• Watches

Intellectual Property

• Patents

• Copyrights

• Royalties

Farmland and Agricultural Assets

• Productive farmland

• Livestock

Trusts and Funds

• Family trusts

• Endowments

Foreign Investments

• Offshore accounts

• International properties

Cash and Cash Equivalents

• High-yield savings accounts

• Treasury bills

Commodities

• Oil and gas reserves

• Timber

Sports and Entertainment

• Ownership stakes in teams

• Investments in entertainment projects

Buy, Borrow, Die

The "Buy, Borrow, Die" strategy is a financial approach often used by the wealthy to minimize taxes and maximize wealth preservation. Here's how it works:

1. Buy

• The rich invest in appreciating assets like real estate, stocks, or businesses.

• These assets grow in value over time, building wealth.

• Importantly, they focus on assets that provide equity without triggering taxable income.

2. Borrow

• Instead of selling assets (which triggers capital gains taxes), they borrow against the value of these assets.

• Loans are not taxed as income, so they gain liquidity without paying taxes.

• For example, they might take out a low-interest loan against stocks, real estate, or other assets.

• The borrowed money can fund their lifestyle or other investments.

3. Die

• Upon death, the assets are passed to their heirs.

• The step-up in basis rule applies: the value of the assets is reset to the current market value, erasing any unrealized capital gains.

• This means the heirs can sell the assets without paying taxes on the growth during the deceased's lifetime.

• Trusts and estate planning can further reduce estate taxes.

Why It’s Effective

• Tax Avoidance: They avoid capital gains taxes by not selling assets.

• Wealth Preservation: Borrowing lets them use their assets while keeping them intact.

• Generational Wealth: Heirs benefit from tax advantages like the step-up in basis.

This strategy works well in jurisdictions with favorable tax laws, making it a powerful tool for long-term wealth accumulation and preservation.

How royals enjoy life:

Here’s a list of ways rich people often enjoy life:

1. Living in grand palaces and castles.

2. Hosting lavish state banquets and receptions.

3. Traveling in private jets, luxury cars, or carriages.

4. Attending exclusive galas and royal ceremonies.

5. Participating in horse riding and polo matches.

6. Collecting priceless art and historical artifacts.

7. Maintaining private islands and luxurious estates.

8. Wearing custom-designed royal jewelry and couture.

9. Enjoying private concerts and performances.

10. Hunting and engaging in traditional royal sports.

11. Dining on gourmet meals prepared by personal chefs.

12. Touring the world on diplomatic missions or vacations.

13. Spending summers in exclusive retreats or residences.

14. Hosting charity events and philanthropic galas.

15. Having personal attendants and staff for daily needs.

16. Celebrating grand weddings and coronation ceremonies.

17. Attending high-profile international events.

18. Investing in rare collectibles and heirlooms.

19. Participating in exclusive cultural traditions.

20. Supporting high-profile charities and causes.

21. Enjoying traditional royal gardens and tea parties.

22. Owning and racing thoroughbred horses.

23. Participating in global cultural diplomacy.

24. Accessing world-class healthcare and wellness services.

25. Creating memoirs or commissioning biographies.

26. Owning private vineyards and tasting rare wines.

27. Exploring luxury cruises and yachts.

28. Being part of historic ceremonies and rituals.

29. Showcasing royal protocol and heritage at events.

30. Passing down legacies through grand inheritances.

How rich people enjoy life:

Here’s a list of ways rich people often enjoy life:

1. Luxury vacations to exotic destinations.

2. Owning private jets and yachts.

3. Staying in five-star resorts and private villas.

4. Fine dining at high-end restaurants.

5. Collecting luxury cars and supercars.

6. Investing in art, antiques, and collectibles.

7. Personalized shopping experiences and luxury brand items.

8. Attending exclusive events like galas, fashion shows, and private parties.

9. Owning multiple properties in prime locations.

10. Memberships in elite clubs and societies.

11. Playing expensive sports like golf, polo, and skiing.

12. Enjoying private concerts and performances.

13. High-end wellness retreats and spas.

14. Customizing homes with state-of-the-art facilities.

15. Traveling first class or by private plane.

16. Engaging in adventure tourism, like safaris or diving expeditions.

17. Hiring personal chefs, trainers, and wellness coaches.

18. Hosting extravagant parties and gatherings.

19. Exploring unique experiences, like space travel or deep-sea adventures.

20. Philanthropy and establishing charitable foundations.

21. Collecting rare wines, whiskeys, or cigars.

22. Participating in high-stakes gambling or luxury casinos.

23. Accessing VIP passes for major events (sports, concerts, etc.).

24. Investing in bespoke fashion or custom-made accessories.

25. Taking part in private auctions and bidding wars.

26. Having personalized healthcare and concierge medical services.

27. Pursuing hobbies like horse riding or sailing.

28. Hiring personal assistants to manage daily life.

29. Renting or owning private islands.

30. Experiencing cultural immersions with private guides.

How upper middle class people enjoy life:

Here’s a list of ways higher middle-class people often enjoy life:

1. Domestic and international vacations.

2. Dining at popular restaurants and cafes.

3. Owning a comfortable car or two.

4. Living in well-furnished homes or apartments.

5. Watching movies in premium theaters.

6. Hosting house parties or BBQ gatherings.

7. Going on road trips or weekend getaways.

8. Engaging in hobbies like photography, gardening, or gaming.

9. Attending concerts, plays, or sports events.

10. Shopping for branded clothing and gadgets.

11. Upgrading home appliances and electronics.

12. Investing in health and fitness memberships.

13. Enrolling children in extracurricular activities and private schools.

14. Celebrating festivals and special occasions with grandeur.

15. Taking spa days or wellness retreats.

16. Participating in recreational sports like tennis or badminton.

17. Accessing premium streaming platforms and subscriptions.

18. Enjoying fine wine, craft beer, or gourmet food.

19. Joining social clubs or community organizations.

20. Renovating or redecorating their homes.

21. Going on cruises or luxury train journeys.

22. Gifting memorable experiences like hot air balloon rides.

23. Investing in mutual funds, stocks, or real estate.

24. Pursuing further education or certifications for self-growth.

25. Buying family memberships for zoos, museums, or theme parks.

26. Supporting charities or participating in volunteer work.

27. Enjoying staycations in boutique hotels.

28. Upgrading their tech gadgets frequently.

29. Exploring adventure activities like trekking or scuba diving.

30. Dining at buffets or weekend brunches in 4-star hotels.

How middle class people enjoy life:

Here’s a list of ways middle-class people often enjoy life:

1. Taking budget-friendly vacations.

2. Celebrating festivals and family gatherings.

3. Watching movies in theaters or at home.

4. Dining at casual restaurants or street food stalls.

5. Going on picnics and day trips.

6. Shopping during sales and discounts.

7. Enjoying homemade meals and potlucks.

8. Spending time in parks or public spaces.

9. Watching TV shows, sports, or streaming platforms.

10. Playing indoor games like carrom or board games.

11. Participating in local fairs or events.

12. Attending weddings and community celebrations.

13. Taking road trips with friends and family.

14. Visiting relatives and family homes.

15. Investing in small hobbies like cooking or crafting.

16. Participating in community sports or yoga sessions.

17. Celebrating birthdays with simple gatherings.

18. Buying and enjoying new gadgets occasionally.

19. Spending weekends at malls or local markets.

20. Taking walks and enjoying nature nearby.

21. Exploring free or low-cost local attractions.

22. Gifting small but meaningful presents.

23. Sharing laughter and stories with loved ones.

24. Indulging in seasonal treats or traditional dishes.

25. Celebrating small milestones at home.

26. Watching local plays or community performances.

27. Reading books or magazines.

28. Participating in cultural or religious activities.

29. Saving for a dream purchase or vacation.

30. Sharing family stories and creating memories together.

How poor people enjoy life:

Here’s a list of ways poor people often enjoy life:

1. Celebrating festivals and religious events.

2. Spending time with family and friends.

3. Playing traditional or street games.

4. Enjoying local fairs or melas.

5. Watching free TV channels or community shows.

6. Sharing meals together at home.

7. Singing and dancing during gatherings.

8. Visiting local parks or public spaces.

9. Celebrating birthdays or milestones with simple treats.

10. Watching cricket or other sports with neighbors.

11. Attending community events or processions.

12. Listening to folk songs or storytelling.

13. Walking around markets or bazaars.

14. Enjoying seasonal fruits or street snacks.

15. Organizing small picnics nearby.

16. Participating in community rituals or traditions.

17. Playing cards or simple board games.

18. Watching street performances or local artists.

19. Visiting temples, mosques, or churches.

20. Sharing jokes and laughter in groups.

21. Bathing or playing in rivers or lakes.

22. Borrowing and reading magazines or newspapers.

23. Watching movies on shared devices.

24. Enjoying roadside tea or snacks.

25. Participating in community weddings or events.

26. Engaging in local sports like kabaddi or gully cricket.

27. Decorating homes during festivals.

28. Attending free cultural or musical programs.

29. Enjoying cool evenings outdoors.

30. Helping each other in celebrations and festivities.

More advices on how to earn more money will be added here in future.