Buy assets, not liabilities.
An asset is something that is putting money into your pockets. A liability is something that takes money away or something that isn’t putting money in your pockets. Buy things that make money for you like stocks, real estate. Don’t buy things that don’t make money like expensive clothing, fancy cars, etc.
Don’t buy assets you don’t understand.
Make sure that before you purchase an asset you have a good understanding of what it is. When your friends at the bank try to sell you a complicated financial instrument that you don’t understand, chances are it’s not a good decision. When you buy an asset that you understand, you are more likely to take more care of the asset.
Make more money, not save more money.
No one increases their net worth by saving. Your money isn’t doing anything but collecting dust when you leave it in a savings account. Save money to invest, don’t save just to save. In order to make more money you need to increase your value. You get paid based on your value, not your time. The more valuable you are, the more money you will make.
People who look rich are poor. People who look poor are rich.
People who drive fancy cars and flaunt their supposed wealth are probably not that wealthy. Usually the poor purchase fancy clothings and cars to make others think that they are wealthy. The rich use their money to make more money, not to impress others. Invest your money into a Nike stock, not a $200 Nike shoe.