10 personal finance rules
I publish in the public domain, I use this all the time
I try to follow simple techniques for working with money. If any of this helps you, I’ll be very happy.
These are not psychological techniques, only practice.
1 Any spending is an opportunity to earn.
- cashback up to 5% for certain categories
- bargain when buying big things, it’s not a shame.
- using credit card funds
2 Income growth is disproportionate to expenditure growth.
The principle is simple: if I earned 20% more this month, I can only spend 5% more. Many make this mistake: as soon as incomes increase, they immediately “walk-a flaw" and take a loan.
3 Budget rule
From 10% of income immediately go to the investment fund. It doesn’t matter what income. The budget rule is mandatory.
4 Dream Fund
It is foolish to work only for investments. We live now. Therefore, from 5% of income is invested in a fund of immediate emotional goals (gifts, a new car, travel). Targets must light up.
5 Don’t borrow money
Unless it’s business related. If I can’t afford it, what’s the point of shifting the responsibility onto my future self? This is not for me.
6 Don’t take money from your wife
Her money is her money. My money is our money.
7 Share with those who need help.
Charity. It’s intimate here.
8 Invest in the business that you develop.
A significant part of the money from projects remains for development within projects. If you don’t invest in your education (development), you don’t grow anymore. So someone qualified will soon come to your place.
9 Money is a means to solve problems.
The more serious tasks and ambitions you have, the more money you have. Since money is needed to complete serious missions. The mission must be formulated and kept in front of your eyes.
10 There are 2 reminders in my wallet.
The first is a 100 dollar bill from 1993. I was 5 years old, and the family had little money. It reminds me that poverty is not a vice. The second is a coin of 2 pounds sterling. She got into my backpack by an incomprehensible accident at the T. Robbins training in London in 2018. She reminds me that money falls from the sky if you live life to the fullest.