4 lessons Greece hasn't learnt from The Greek Financial Crisis.
What Greece did wrong - Germany did right.
After the 2nd World War the German Deutsche Mark was worthless and they owed the world billions in reparations.
They couldn't borrow money anywhere (like Greece).
They determined to adopt a culture of saving to get what they needed before saving for what they wanted.
This culture of savings has persisted to this day.
Germany has one of the lowest debt to GDP rates in the world and has an envious fiscal surplus.
4 of the wisest lessons from the Greek Financial Crisis.
Lesson 1: Give away the first 10% of your income, before you feed your family or the mortgage. The world's wealth belongs to those who are the givers. Trust me, it works.
Lesson 2: Save the next 10% until you have $1000. This is not 'rainy day' money - this is your 'wellspring' - your 'Principle Savings'.
(Never stop adding to it. Continue to save 10% from your wages until you retire.)
Lesson 3: When your 'Principle Savings' has grown to $1100 (10% growth) with interest, re-invest $100 in something riskier (a higher return than just interest bearing deposits.)
Lesson 4: When that riskier investment earns you 10%, take that $10 and re-invest in something really high risk (really high return).
Never let the Principle Savings go . . .
Preserve the principle at all costs.
Follow this and you will never be in the same position as Greece - owing more than they can afford.
Money will then be your slave and not your master.
“Whoever loves money never has money enough; whoever loves wealth is never satisfied with his income. This too is meaningless.” Ecclesiastes 5:10
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