You only need to know these 5 rules to get ahead of the 90% who are not aware or don’t know about these rules of money. Can you share in the experience of not being raised in a wealthy family, as I was?
Money doesn’t guarantee happiness, and getting rich won’t change who you are. If you’re miserable, having more money won’t fix it, and if you’re mean, it’ll only make things worse for you and your family. Money can amplify both your problems and your opportunities.
If you’re generous, you’ll likely become even more so with wealth. People might call you a philanthropist if you’re extremely generous and successful. Ultimately, the joy of money comes from enjoying it and sharing it. Just like in life, what you give is what you’ll get back, so make wise choices.
Remember, our content is for learning only, so talk to a money expert before deciding.
Studies indicate that regularly doing five specific things with money for about ten to fifteen years can help you save a lot of money. But sometimes unexpected things like getting sick or having an accident can change how much money you end up with.
However, if you keep doing these things, you can grow your money steadily without needing luck or special situations, because they’re just sensible things to do.
So, let’s begin with the first step: making and sticking to a budget.
1. Make a Written Plan for Your Finances.
It’s important to budget intentionally on paper before each month begins. Imagine managing money for yourself as if you were a company called “You Incorporated” – if you’re not doing it well, would you keep yourself employed? Probably not.
We often mishandle money because we’re disorganized and lack a plan. However, the good news is that you can decide today to change that. For instance, if someone isn’t following the right process, they can choose to adjust and improve. You have the power to decide to become better at managing your finances starting now.
Today, you can start budgeting by grabbing a yellow pad and deciding to manage your money better, because if you continue doing the same things, you’ll keep getting the same results.
2. Get Out of debt.
Alright, let’s break it down. First off, you got to pay off what you owe. You probably knew that already. because it’s in the Bible. Basically, if you owe money, you’re not really free, you become a slave to the lender. That’s true. Here’s why: Your main tool for getting rich is your income. Let me explain further.
Imagine this: If you invest $500 every month from when you’re 30 until you’re 70 in a good stock investment, you’ll have $5.6 million. That’s how much a car payment costs you. So, who benefits from your car payment? It’s not you; it’s the car companies like General Motors or Toyota. You’re driving something you can’t afford and wondering why you can’t save for your kid’s college.
Now, some people are in debt for so long, it feels normal. Like having a pet. Credit cards, student loans, you name it. But being in debt just keeps you stuck. I’ve been there too, so I get it. But think about this: What if you didn’t owe anyone anything?
It’s hard to even imagine, right? Some people say, “You’ll always have a car payment.” But that’s just a defeatist attitude. You don’t have to live like that.
And blaming politicians won’t solve your problems either. You’re the one in control of your life. So, how do you get out of debt? Simple, stop borrowing money. Cut up those credit cards, close those accounts.
I did it, and guess what? I’m not broke anymore. I haven’t used a credit card in 30 years. Instead, I use debit cards for everything. They work just fine, even for traveling. And you know what? None of the millionaires I’ve met got rich from airline miles. So, ditch the debt, take control of your life, and start building your wealth. That’s the key.
3. Build High-quality Relationships.
Once you’re not owing money anymore, it’s important to be cautious about the friends you have. Why? Because who you hang out with can greatly affect your financial situation. You know how you don’t let your kids play with troublemakers? It’s the same idea.
If your kid hangs out with someone who’s always causing trouble, they might start acting like them. Then they come home talking back, and you’re wondering where they learned it. It’s from hanging out with that troublemaker, right? It’s the same for us adults. The people we spend time with influence how we act and think.
If all your friends are into watching reality TV, that’s probably all you’ll know about. But reality TV isn’t real life. So, maybe it’s time to change what you’re surrounded by.
“Five years from today, you’ll be the same person you are today except for the books you read and the people you meet.” It means the people you’re around and the things you expose yourself to shape who you become. Studies have shown that over ten years, your income will be like the average income of your ten closest friends.
That’s because you pick up their habits and ideas without even realizing it. But don’t get me wrong, it’s not about being snobbish and only having rich friends. It’s about choosing friends who inspire you to be better. You can have all kinds of friends, but it’s your closest pals who influence you the most.
When our son started playing sports, we made sure he joined a team where the players were disciplined and focused. We didn’t want him learning bad habits or getting into trouble with the wrong crowd. So, we made sure to choose a team where the coaches emphasized teamwork, respect, and hard work. We even joked about how we’d keep an eye on his teammates to make sure they were good influences.
Our goal was simple: to surround him with positive influences that would help him grow into a responsible and dedicated athlete. And you know what? He became a star player on the team and made lifelong friends who shared his values. It wasn’t just luck; it was a result of careful choices and setting the right environment for him to thrive.
4. Save and Invest.
The fourth important thing is saving and investing your money. Smart people keep money saved up for when they need it, like having food stored in the pantry. Saving money is like keeping those green paper faces with presidents on them for later, just in case. In ancient times, having a lot of oil or food meant you were wealthy. There were two main groups of people: the rich who could afford nice food, and the poor who mostly ate simple stuff like hummus and olives.
If you spend all the money you earn, you’re not being wise. It’s like gobbling up everything you have without thinking ahead. Saving money is important. You save up for when something unexpected happens, like a car accident or losing your job. It’s like what Grandma used to say about saving for a rainy day. You’ve got to be ready because life can throw surprises at you.
Also, saving helps you prepare for the future, like when you retire. Relying on the government to take care of you when you’re older isn’t a good plan. They’re not exactly experts at handling money. You can’t count on them to ride in and save the day. You’re the boss of your own future.
Some folks worry a lot about politics and elections, but I don’t. I’ve made money regardless of who’s in charge. Politicians are always asking for money, but they don’t exactly send any back our way. They just keep taking. So, the deal is simple: save your money, invest wisely, and take charge of your own destiny. That’s the real power.
So, it’s important to choose your friends wisely because they influence your decisions and behaviours more than you realize. Don’t hang around with people who drag you down. Instead, surround yourself with those who lift you up and inspire you to be your best self.
5. Generosity.
Generosity is like magic. When you give, you receive. It’s not just about money; it’s about sharing what you have, whether it’s time, knowledge, or resources. When you give freely, without expecting anything in return, you create a positive energy that attracts abundance into your life.
Think about it this way: when you help others, they remember your kindness. They appreciate what you’ve done for them, and they’re more likely to help you in return. It’s like planting seeds of goodwill that grow into a bountiful harvest. When you’re generous, people want to be around you. They trust you, they respect you, and they’re more willing to do business with you.
But generosity isn’t just about making connections and building relationships. It’s also about mindset. When you have a generous mindset, you’re more open to opportunities.
Instead of hoarding your wealth and living in fear of losing it, you’re willing to take risks and invest in your future. You understand that true wealth isn’t just about how much money you have in the bank; it’s about living a fulfilling life and making a positive impact on the world around you.
And here’s the best part: generosity isn’t just good for your soul; it’s good for your wallet too. Studies have shown that people who are generous tend to be happier and more satisfied with their lives. When you give to others, it activates the pleasure centers in your brain, releasing feel-good chemicals like dopamine and oxytocin. So not only are you making a difference in someone else’s life, but you’re also boosting your own happiness and well-being.
But perhaps the most surprising thing about generosity is its effect on your finances. You might think that giving away your hard-earned money would leave you with less, but the opposite is often true.
When you’re generous, you attract abundance into your life. Opportunities seem to come out of nowhere, and doors that were once closed suddenly swing open. It’s like the universe rewards you for your kindness, multiplying your wealth in ways you never thought possible.
And even when times are tough, generosity can be your greatest asset. When you’re facing financial difficulties, it’s easy to retreat into a scarcity mindset and focus solely on your own needs. But by continuing to give, even in small ways, you’re signalling to the universe that you trust in its abundance. And more often than not, the universe responds in kind, providing you with the support and resources you need to overcome any obstacle.
So, if you want to build wealth and stay happy, cultivate a spirit of generosity. Give freely, without expecting anything in return. Trust in the abundance of the universe, and watch as your generosity comes back to you tenfold.
Remember, true wealth isn’t just about what you have; it’s about who you are and how you choose to live your life. And when you choose generosity, you’re not just enriching your own life; you’re enriching the lives of everyone around you.
It’s time to get rid of those money problems and lift that weight off your shoulders.