Rule #1 – Grow your income
If you’ve plateaued, you need to do something immediately. As from the book, The Richest Man in Babylon – “increase thy capacity to earn, and earn you shall.” In other words, learn something new or develop some new skills. You should always be looking for ways to take yourself to the next level. This could include working harder to finish a job or make a sale or picking up some more hours to grind out some extra bills.
Rule #2 – Pay yourself
In other words – Save. Start putting money aside in a savings account consistently and do not touch it for at least a year. Then once the year is up, follow through on Rule #5.
Rule #3 – Patch up the leaks
Benjamin Franklin wrote – “Beware of little expenses. A small leak will sink a great ship.” Where are the leaks in your life? Is it the latte from Starbucks every day? The latest phone or car? Or is it the unpaid interest on the credit cards? The easiest way to stop spending is to create a budget and hold yourself accountable. Here is a good budgeting book at your disposal: Budgeting: How to Make a Budget and Manage Your Money and Personal Finances Like a Pro
Rule #4 – Owe nothing to anyone (aside from love) – Romans 13:8
It happens, we get in debt. It doesn’t become bad until you realize you can’t pay it back when you need to. It also becomes bad when it prohibits you from doing things you want to do in life. Make it a point to get out of personal debt. Instead of making payments to others, go back to Rule #2 and start paying that savings account. For a guide on how to get out of debt, try this: The Total Money Makeover: A Proven Plan for Financial Fitness
Rule #5 – Multiply your wealth
“Compounding interest is the most powerful force in the universe.” – Albert Einstein. Is your money compounding for you? In other words, is your money invested in anything where it could continuously grow? I talk about investing all the time. Check out what I’ve said before on my Investment archives.
Rule #6 – Make preparations for when you can no longer work
This is why Rule #2 & #5 are so important. There will come a time when your working days are over and you can no longer work as you once could. This is why you need to have your money working for you for the days when you can no longer work yourself.
Rule #7 – Don’t be a fool
In just about every personal finance book, you will come across at least one of these rules. While you could go into great detail, it’s sometimes best to be reminded of the big picture every now and again. I hope you find these rules useful on your journey to financial freedom.
Cheers & God Bless
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