The 7 Basic Rules of Successful Money Management

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...

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

Pretty self-explanatory.

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

Matt

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43 Comments on this post.

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  • Alex Castro
    5 June 2017 at 7:44 pm

    Hey Matt, I couldn’t agree more with #2 – Pay Yourself. It’s so important to save anywhere between 10%-15% of your net income every month and to build your 3-6 month emergency fund. Money management requires discipline and consistency. Having the knowledge about the importance of saving is not even half the battle…it’s about the follow through and actually holding yourself accountable to getting it done. Great post!

    Leave a Reply
    • Matt
      5 June 2017 at 7:49 pm

      Amen Alex! Thank you for reading! I appreciate your input and insight. You’re right, when it comes to finances, actions speak louder than words!

      Leave a Reply
  • Jenn
    6 June 2017 at 12:29 am

    Great tips! I have a bad shopping habit that has sprung a leak in my planning. Time to reassess!

    Leave a Reply
    • Matt
      6 June 2017 at 6:25 am

      Oh no! You can do it! Lol it’s all about discipline and self control. Bust out the budget and patch the leak:) thanks for commenting Jenn!

      Leave a Reply
  • Miss Piggy
    6 June 2017 at 5:36 am

    Hi Matt!

    Nice article. I can’t agree more with Numero 1: Pay yourself first. I used to pay my self last i.e. whatever was left after the month of bills and discretionary spending. No surprise there was nothing left in the kitty!

    Looking forward to your next tips for giving finances a good workout.

    xx Miss Piggy

    Leave a Reply
    • Matt
      6 June 2017 at 6:23 am

      Hi Miss Piggy! Thanks for commenting! It’s definitely an interesting concept and way of looking at saving. Its critical for getting ahead. I’m glad you enjoyed the post 🙂

      Leave a Reply
  • dadmoneywithjim
    6 June 2017 at 3:30 pm

    Love the reminder in point #3. If we aren’t careful, a bunch of small bad decisions compounded on one another will plague us from growth. Financially and in life in general. Thankful for your persistence in wanting to help others succeed!

    Leave a Reply
    • Matt
      6 June 2017 at 3:32 pm

      Thats right Jim! Its a good quote from Benny Frank! Thank you for commenting. I appreciate the compliment! Even if I help just one person, I’d be happy. But why settle at one? 😉

      Leave a Reply
  • Sylvia Jo
    6 June 2017 at 7:04 pm

    I’m so glad to have come across your site. There’s so much about finance I need to learn.

    Leave a Reply
    • Matt
      6 June 2017 at 7:08 pm

      Thanks Sylvia! Im glad you’re enjoying yourself on here! 🙂 if you ever have any questions about anything ask away!

      Leave a Reply
  • 1girlonejourney
    6 June 2017 at 11:51 pm

    Great tips!

    Thanks for taking out time to check my blog 🙂

    Leave a Reply
    • Matt
      6 June 2017 at 11:52 pm
  • James L
    7 June 2017 at 1:25 am

    Thank you matt for following my blog. I agree so much with 2 – everytime I get paid in always put in the same money. When I got promoted I also started saving all the pay rise after all its not like I noticed the difference!

    Leave a Reply
    • Matt
      7 June 2017 at 7:40 am

      Sure thing James! That’s the way to do it! Start building that savings and paying down debts. Then you can begin investing to hopefully drive in some more sources of income!

      Leave a Reply
  • layvi444
    7 June 2017 at 2:01 am

    Very straight forward and true. These are great tips for a great future

    Leave a Reply
    • Matt
      7 June 2017 at 7:41 am

      Thank you layvi! Thats exactly what i was going for! Im glad you enjoyed reading and I wish you all the best! 🙂

      Leave a Reply
  • defeatingnormal
    7 June 2017 at 7:57 am

    Great tips! Very simple. I love tip #5. It is amazing to me how much money can grow when one uses the tools available.

    Leave a Reply
    • Matt
      7 June 2017 at 8:03 am

      Hey thank you for commenting! Yes! There are so many tools available to multiply/invest your money. Anything is possible 🙂

      Leave a Reply
  • Jeff Glosick
    9 June 2017 at 5:50 am

    Well written and so simple. Compound interest can be your best friend when it’s working for you, rather than against you.

    Leave a Reply
    • Matt
      9 June 2017 at 6:21 am
  • Hailey Burke
    9 June 2017 at 4:01 pm

    Thank you for writing this. It’s straight to the points and I’m happy I’ve found your blog while I begin my journey to fixing my finances and growing my assets.

    Leave a Reply
    • Matt
      9 June 2017 at 4:25 pm

      Hi Hailey thanks for responding! Im glad you found this post useful! I wish you all the luck on your journey! 🙂 you’ll do great!

      Leave a Reply
  • Shawna
    10 June 2017 at 9:09 am
  • thekeepupblog
    11 June 2017 at 7:57 pm

    Hey Matt!! I need this blog in my life I am terrible with money and I’m truly working on getting much better. I will be following your post!

    Leave a Reply
    • Matt
      11 June 2017 at 8:56 pm

      Hey!!!! Thanks for commenting! And Dont worry. Dealing with money is something that doesn’t require natural talent or any super abilities. It just comes to to discipline, action and wisdom! I’m glad you decided to follow 🙂 I hope I can help you in any way possible!

      Leave a Reply
  • Vinay
    11 June 2017 at 10:26 pm

    Totally agreed!! Yet, most don’t know how to multiply money and make it work for them.. This reminded me of the author of Rich Dad Poor Dad, Robert Kiyosaki.

    Leave a Reply
    • Matt
      12 June 2017 at 4:08 am

      Thanks for commenting Vinay! You’re right, there are a lot of ways to consider when multiplying money. I figured it would help to introduce the concept in the basic sense. But Yes! I just read that book not to long ago. It definitely helped change my perspective!

      Leave a Reply
      • Vinay
        12 June 2017 at 4:52 am

        I agree to the fact that financial education must be taught at school. What do you think?

      • Matt
        12 June 2017 at 6:11 am

        I totally agree with that! There really are no money management courses in public school systems unless its an elective. Financial knowledge is usually passed down from the parents. Which can obviously be bad or good depending on your parents!

      • Vinay
        12 June 2017 at 6:12 am

        Indeed! But few books give us some ideas about it too!

      • Matt
        12 June 2017 at 6:15 am

        This is true! Financial principles are good to learn but applying them is the real challenge!

      • Vinay
        12 June 2017 at 6:16 am

        With the right mentor or advisor, it can be done 😉

      • Matt
        12 June 2017 at 6:30 am

        amen brother! Haha

  • Investor Tuition
    15 June 2017 at 7:37 am

    Rule #4 regarding owing money is extremely important to follow as much as possible. Having spent many years as a financial adviser I was in a position to see the issues too much debt did to people. Unfortunately, banks really only take care of clients in the advertising. When it comes to locking people down with huge amounts of consumer debt they only care about their profits. Avoid debt if at all possible. Pay cash or go without is the best policy. If you have large credit card debts, tear up the card and pay it down Nice post and interesting to read, thanks Adrian

    Leave a Reply
    • Matt
      15 June 2017 at 7:52 am

      Hey Adrian! Thank you so much for commenting! I appreciate your perspective. Debt is a very dangerous thing! Unless you can absolutely deal with it appropriately. Paying credir cards off consistently and not buying stuff you can’t afford. Then definitely get rid of them! Im glad you enjoyed the post! 🙂

      Leave a Reply
  • TheWoman
    19 June 2017 at 9:09 pm

    Great Advice. I really liked #3 and had never heard that one before.

    Leave a Reply
    • Matt
      19 June 2017 at 9:38 pm

      Thank you! 🙂 im glad you enjoyed the post! Ben Frank is full of good quotes.

      Leave a Reply
    • @MillJourney87
      25 June 2017 at 1:57 pm

      I too liked your take on #3. My wife and I were shocked when we pulled apart the budget last year and found how much the extras added up. So glad that we did look into because it’s like a random pay increase. Cheers!

      Leave a Reply
      • Matt
        25 June 2017 at 2:04 pm

        Hey thanks for commenting! Thats awesome haha those little expenses add up to big amounts sometimes. I hear ya on that brother!

  • jayfindling
    20 June 2017 at 1:55 am
    • Matt
      20 June 2017 at 6:03 am
  • Suit Down
    27 June 2017 at 9:47 am
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