Welcome to the series with the most important financial lessons our school system doesn’t teach. Articles in this beginning wealth series will explore in depth each rule of wealth accumulation and financial freedom.
Hello best life seekers!
Want to build wealth and financial freedom but don’t know where to start? This is THE foundational formula for financial stability, out of which flows everything else. Follow these 7 money rules and you’ll be wealthier at the end of every month than at its beginning. No get rich schemes. No depending on luck. The life of your dreams requires a strong financial footing that starts right here. On the flip side, if you don’t do this, sooner or later you’ll wind up living paycheck to paycheck and be one emergency away from destitution – and getting rich or staying rich won’t even be an option.
Follow these 7 golden rules of wealth accumulation so you can start living your best life now.
Know your net worth, monthly net income and monthly expenses to the dollar. You can’t get to where you want to go without knowing where you are now.
Live on 70% or less of your net income. Expenses, travel, a new TV, phone, car, etc. come out of this 70%. Don’t make enough for all you want? Then the hard truth is that you need to have more income or spend less income because you are trying to live above your means.
Put 30% of your net income into money-making investments. If you have too much debt, consider using 10% of your net income to pay down the debt and put 20% of net income into money-making investments. This formula of 30% of net income invested in money-making activities is the heart and soul of financial independence and freedom.
Keep at least one month’s amount of living expenses in your checking account at all times. This will keep you secure should a small emergency arise without you needing to dip into your investments or other financial accounts. Top it up as soon as possible after use.
Pay your bills on time and don’t take on new debt that doesn’t buy money-producing assets.
Protect your health – be it mental, physical, emotional or spiritual. Deficits in any of these are expensive not just for their cost to treat or fix but also because they often lead to a stunted ability to make wise wealth decisions.
Take responsibility for your destiny. The world doesn’t stop changing so you must grow and adapt in order to keep pace, let alone thrive.
- The Don’t Live Broke Series Introduction
- Rule 1: Know Your Wealth
- Rule 2: The Midas Lifestyle
- Rule 3: Make Money Work for You
- Rule 3: Debt Payoff Option
- Rule 4: Stash Your Cash
- Rule 5: Don’t Dig Money Pits
- Rule 6: Body of the Gods
- Rule 7: Hustle
Like this article or find it useful? Please share it so others can learn the secret money formula and start living their best lives.