Having a great personal finance is straightforward. Spend less than you earn.

Control your impulses. The single most troublesome factor in personal finance is impulse shopping. If you want to buy something non-essential, sit on it for a week.

Plan ahead. Planning ahead helps you to reduce buying overpriced stuff from kiosks and vending machines.

Save up some. You should have at least $1000 in your savings for emergencies. Reduces loans that you have to take, saving money in the end.

Always buy according to $/kg or $/l. In the most cases, product quality is irrelevant. If you have not tried something, always prefer the cheapest variety.

Buy your own house as fast as possible. Renting is expensive in the long run. Rent the house when you no longer need it.

Buy clothes only at sales. Usually, cloth retailers are screwing you when you buy non-sale items. That is just cloth retail business works. History has shown that people want to wear $50 jeans that cost $20, not $20 jeans that cost $20.

Buy fresh food in season. Ingredients in season cost less and taste better. Ideally buy them from your local market.

Luck

Lucky people just behave lucky.

"Being Lucky" is just an attitude. Behaviour that generates opportunities. Lucky people are good at listening to their own intuition so can spot opportunities and have confidence to take them.

Look situation in different way. How could you benefit from the situation? Anticipating a positive outcome is better than fearing failure.

Learn to fail. Learn to take control, minimize loss and spot other opportunities when things go bad.

Getting Rich

There are two emotions that you must control if you want to get rich: fear and greed. Fear of not having money that makes us work. Greed to spend the money we just earned working.

Learn to make decisions slowly and rationally. First step is to deal with these fears inside your head. Normally people make decisions emotionally, while they should be done rationally and not in a hurry.

How to make an important decisions:

1. Get good sleep.
2. Lay out all the options.
3. Estimate cost of each option.
4. Estimate value of each option.
5. Pick the one with best cost-to-value.
6. Stick to it until you get additional information.

Understand difference between an asset and a liability. Cut down all liabilities and start gaining assets.

Liabilities     generate expense    -> BAD
Assets          generate income     -> GOOD

Income  <-> Expense
Asset   <-> Liability

Low-class family:       Income -> Expense       -> NO EXTRA MONEY

Middle-class family:    Income -> Expense       -> NO EXTRA MONEY
                            \
                             ---> Liability

High-class family:      Income -> Expense       -> HAS EXTRA MONEY
                                    ^
                        Assets -----|

Asset examples:

• Own business that does not require your presence, fully ran by others.
• Rentable real estates.
• Stocks.
• Bonds.
• Mutual funds.
• Notes (IOUs).
• Royalties.

Learn taxing laws of your country. For example, in the most countries employee earns money and is taxed right away but corporations earn, spends and is taxed after that.

Use the laws for your advantage. Use corporations for all your big purchases. Avoid doing anything strictly illegal, you will get caught.

Financial intelligence consists of:

• Accounting, understand financial statements.
• Investing, understand how money makes money.
• Markets, understand supply and demand.
• Law, use corporation laws for your personal gain.