Whether you choose to save, spend or invest depends largely upon how you view your ability to “handle” these simple rules of money. These seven rules really are quite simple and yet can seem very complex to those who choose not to accept them as real-life wealth building truths.
Money Rule #1 – Don’t spend more than you make.
Sounds simple doesn’t it? But life can often get in the way of this common sense money rule and out the window it goes. Warren Buffet, one of the richest men in the world, was quoted as saying, “My advice to you is if you can’t afford it, don’t buy it.” Sounds simple enough yet sometimes when temptation rears its head, this advice can easily be forgotten.
Money Rule #2 – Pay yourself first.
When it comes to important money issues, this is a big one. Rule of thumb, pay yourself at least ten per cent of the money you make. Make $100 then pay yourself $10. Your future financial comfort, wealth and emotional peace of mind are definitely worth this "pay yourself first" rule.
Money Rule #3 – Save more and spend less.
Do you know exactly how much you’re spending and what you’re spending it on? This rule doesn’t mean not enjoying life and becoming a miser. It means having a reasonable plan in place for saving money with regularity. Here’s another truth: When you spend less you’ll have more to save.
Money Rule #4 – Use cash more and credit cards less.
Unless it is an emergency here’s a general rule of thumb - If you don’t have the cash to buy it then you don’t need it. If you choose to use credit cards, pay them off as they become due. Debt is no fun emotionally, physically or financially. Cash is a great way to monitor your spending and stay out of debt.
Money Rule #5 – Invest your values and your conscience.
Common sense tells us to invest wisely so we can make money on our investments. Let’s take this a step further - when you invest based on those things that are important to you, you’re usually more willing to stay the course and give your money time to work. Investing is all about having money grow over time. If there is discomfort with the industry or company in which you are investing, there may be a tendency to pull out before your money has time to grow.
Money Rule #6 – Give often to those causes that mirror your values and beliefs.
The world changes for the better one person and one dollar at a time. Give often and give generously to those causes that speak to your heart and mind. No amount of giving is too small to make a difference.
Money Rule #7 - You can never be too young nor too old to learn these seven wealth building rules of money. Master these seven rules and you’ve master your finances.
If you have additional rules you believe we should add to this list, please go to our forum and let us know. We can learn so much from one another! The link is below in the "Related Links" box.
Here's a book from Richard Bach - Smart Women Finish Rich - I highly recommend. I've included a link to Amazon.com: Smart Women Finish Rich
Please take a few minutes to visit my website www.SharonMichaels.com for more empowering suggestions, tools and tips.