Money is something that everyone comes across, everyone has had at least once in their life, but for some reason we never really learn that much about it. If only there were like , rules of money, things everyone got to know to give them a head start in life. Well, luckily for you, I have just that below!

The Rules of Money

  1. Money is a Game
  2. Don’t hate Money
  3. Don’t be a slave of Money
  4. Build ways to make Passive Money
  5. You must be able to afford 5 times the thing you want to buy
  6. Money is a tool – use it to solve problems and fix things
  7. People exchange their money for their wants or needs, provide those solutions
  8. Always have an emergency fund
  9. Always invest at least 10% of your income
  10. It doesn’t always take money to make money
  11. Use money as leverage
  12. Money Comes and Goes

Now that we got rid of most of the people who just wanted to know the list, lets give the rest of you some good information, more details about each one…

Money is a game. Money is not real, it is an idea of the human brain. Money became essential when we moved into cities and civilizations. We needed a way to barter for goods. Unfortunately, since its conception, few people have shared the rules or secrets to amassing more of it, and making our money work for us.

Some of us are even conditioned to hate money. This makes sense, if you spent a life not having it and looking at those who did as people you hated or were jealous of, it makes sense to wrap that around and make it monies fault. But, it is not peoples fault for having money as much as it is yours for not! You need to learn to work for your money, save your money, invest your money, and most importantly, spend it wisely on the things that you really need. If you are constantly buying wants and not needs, you will become an eternal slave to money.

One way to lessen your risk of hating or becoming a slave to money is to develop streams of passive income. Passive income should be the goal of all people, but most do not know what it is.What is passive income? Like the word implies, it is income that you did not have to be heavily involved with the making of the income. Passive income can include affiliate marketing, rental income, dividends, anything that is working for you while you are not necessarily working. This is important because if you lost your main stream of income, like getting fired from a job, you would still have some sort of money coming in.

When it comes to the money that is coming in and out, it is often a rule amongst the wealthy that if you do not have enough extra income to buy the item 5 times, that it is not for you. This might sound crazy, but it makes a lot of sense:

If you have 1,000 dollars, yes you can get a fancy phone upgrade that costs 900. But if you spent your entire 1,000 on that phone, how will you get groceries, rent, and other living necessities? But if you had 5,000 and spent 1,000, you would still have 4 grand left over and wouldn’t feel the same effects as the person who spent all they had on the device. This rule allows for you to make sure all of your daily expenses are met, savings added to, money invested, and a rainy day fund all before making your purchase. Doing this will keep you financially safe forever. Trick is, it is hard to not spend the money.

I was shocked when I did the math a few years ago on what I was spending annually on Throwback Mountain Dew. It was a daily treat of mine, I would go to the corner gas station, the clerks would know exactly what I was coming in for and apologize when it was out of stock! But for that type of treatment, you have to spend “big money”. I was thinking one day, I spend 3.24 every day minimum on this stuff,  thats over 100 a month. I took it one further and multiplied it by every day of the year, $1,182.6! That is a ton of money to drop just on Throwback Mountain Dew ( it is delicious, I highly recommend you start a new addiction… i mean try it). So I could either cut out the sugary drink all together and save over a grand, or I can figure out how to get it smarter. Maybe find it cheaper, maybe drink less, the possibilities are endless.

What is important about that story ( other than you clicking the link and ordering some Mountain Dew) is that it wasn’t until I understood where my money was really going that I was able to recognize a need to change a behavior. That is a big reason why budgeting is SO important if you ever want to not live pay check to pay check. Knowing where you spend it, can allow you to either not spend it there or spend your money in the wisest way possible.

Money is often looked at as paper or the thing dreams are made of, but money should be looked at as a tool. I personally always refer to it as a resource, but a tool is a great word too. It has the ability to fix problems and create things, just as any other tool. Also like with tools, you need to know how to use them in order to create anything of value. Using the tools of budgeting, studying finance, stock trading apps, etc, will allow you to better understand money, and more importantly better understand your needs.

People exchange their money for their wants or needs, provide those solutions. A huge part of the rules of money that are often overlooked is making money. So many articles preach upon the importance of saving money, but what if you don’t have enough to make ends meet and save the extra? You have to either find areas to cut expenses or make more money, it is the simplest macro answer in the world. If you have skills, you should be able to find ways to answer the problems of your community, offer help, and receive payments or some sort of exchange in the process. If you are raking your brain trying to figure out where else you can cut some expenses from, stop. Spend a little time thinking of what solutions you can provide to those around you and offer a compromise that helps everyone involved!

Now that you have a better understanding on the rules and relationships of money, let’s uncover some of the harder parts to grasp. Let’s discuss the money that you will work hard to make, but you will not spend on things you necessarily want. The rule book states that you should put 10% of your earnings into investments as well as keep an emergency fund. If you are like most people you are looking at that statement saying

How the hell am I going to make ends meet, and still have time to save 10% on top of putting money aside for unknown emergencies?

With discipline! If you see a fancy watch that you want but you are also saving up for a house and barely making ends meet, tell yourself ” the watch will still be here another day” and go home and put some money into your investments. They say that a broke man buys a pair of Nike’s while a wealthy man puts the same money into a share of Nike. It will be hard not allowing that instant gratification to come into your heart, but know, the feeling of being financially free will be that feeling times ten!

You are currently allowing your wants to have leverage over you if you are not ahead financially. It is simple as that! Do not let money have the leverage on you, use your money to have the leverage!

Have you ever heard about a bulk discount? Cash discount? Better loan rates for people with good credit?

These are all examples of people using their money for leverage! If you have more liquid money than another person, you can use it to your advantage. A company can not prey on your needs to fit in with the wealthy once you are one of the wealthy. Once you achieve financial freedom, you have more powers than you thought were possible. Also once you have money and a respectable reputation, brands and companies will come to work with you and give you things. You will be proof that sometimes it doesn’t always take money to make money.

The system is set up that way!

If you can start to incorporate these Rules of Money into your daily life, you should quickly start to see a change in both your bank account as well as your overall happiness. I do want to warn you, it will be rough at first, you will be hungry, want to go out to eat, etc. But follow these rules firmly for 3 months, let new habits set in, and if your bank account hasn’t grown, then come tell me how full of shit I am 🙂

If these rules do work for you however, please come back and let everyone know your story!



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