11 Rules Of Money That Will Guide Your Life | Propertylogy

11 Rules Of Money That Will Guide Your Life

By on February 12, 2018

I’m sure every person lives life guided by some philosophies.

Sometimes you have a big or small decision to make and cannot seem to get your heart and mind to agree on a course of action.

This is the time when you call upon that famous quote or your theme song to guide you.

I’m nobody to tell you how you should approach money management.

But if you are lost and open to expanding your philosophical approach to money, these 11 rules will last you a lifetime.

1) Wealth is more about managing your mind rather than managing numbers

Surely you have heard stories about lottery winners going bankrupt in a matter of a few years after collecting their winnings?

It might just be a joke over the dinner table to you.

But in essence it is a lesson that you won’t be able to become and stay rich without the correct mindset.

Numbers and bank accounts are pretty on the eye.

If you think about it, managing them is all about just 2 factors – in and out.

Figures tell a logic and it is not that difficult especially when you can list them down on paper.

2) The road to success is called “Goals”

The concept of goal setting cannot be overemphasized enough in building wealth.

In fact, research have been conducted on career progress. It was found that people who write down their goals have a higher success rate than those who have no clear goals at all.

If you had set a goal of saving $50,000 this year it would be that much easier of a decision when you are pondering whether to buy that luxury car on your birthday.

3) Spend less than you make

The math is simplicity at it’s most basic level.

You will not accumulate any money if you spend more money than you earn.

Credit cards and loan facilities might get you by. But at the end of the day, you have a negative networth when your income is not enough to cover your exuberant spending habits.

To be on the right side of this equation, you need to either spend less or earn more.

I agree that sometimes this can be easier said than done. But do keep this objective in mind whenever you pull out your wallet.

4) Savings is the bedrock of a sound lifestyle

There’s no point going about each day worrying about whether the stock market will crash tomorrow or whether real estate values will tank at the end of the year.

To go about your days without the worry of money at the back of your head, you need to have savings.

Savings are not just money in the bank. It serves as a stabilizer of your mental state.

Because you know that whatever happens, you are not going to drown in your debts. You think clearer and have the flexibility to walk away from anything.

5) Baby steps still carries you forward

No matter how small or insignificant an amount seems to you, they can add up into huge numbers. Especially in the context of life which can stretch for decades.

This can be reflected in the magic of compounded interest. It’s not that saving $25 on a cable subscription each month will make you rich. It is more about the habit of frugality that will multiply your savings on many items.

The reason I love this philosophy more than others is that I feel great that retailers are not making money from my lack of sinful spendings.

Spend only on the things that matter.

6) It takes time to build wealth

You are not going from a $100k networth to a millionaire overnight.

It takes time to save, invest, and accumulate.

Remove yourself from the temptation of “get rich quick” schemes. The only people getting rich quick from these things are the product owners themselves.

Slow and steady has a better chance at success.

I’m not saying that windfalls are myths that only exist in fiction story books. But if you are ever in any doubt when presented in these opportunities, take the safe route and walk away.

7) One step at a time

Too many people wait for the perfect opportunity or circumstances before taking action.

Remember that you are not making a blockbuster movie. Things don’t always fall perfectly into place just for you.

The biggest companies in the world don’t design the perfect product from the get-go. The most successful products ever designed usually come from improvements after improvements made on past products.

It is a step by step process. You wouldn’t see an iPhone X if the first iPhone was never created.

8) Giving up is an option

Many people say that the more you fail, the more valuable the lessons you learn. Some people feels that failure is not an option.

But my take on failure is that you need to choose what and when to give up.

It is often said Thomas Edison failed with hundreds of light bulb prototypes before coming up with the perfect one.

It was these failures that helped him improve on his invention. But it was also because he knew when to give up on things that are not working and design a new one.

Can you imagine if he never gave up on a design that will never work?

9) You are solely responsible for your financial well-being

You cannot depend on your boss, your friends, or your spouse for your own financial well-being.

Everybody have their best interest in mind. Only act on the advice of others if you can agree that your interest is met.

Ideally, we would like to live in a world where people take care of each other. But that is not reality.

If you live in such an ideal world, you probably don’t go out that much.

10) Take action

How rich would you be if you started putting 10% of your income into a structured deposit each month 10 years ago?

A lot of opportunities are available all the time. It is the lack of action that is often costing us.

You need to analyze your fears and find a way to conquer them. Or you could be in the same state in another 10 years.

11) You don’t need to be rich to be happy

So many of us go through each day thinking about making more money. Don’t forget that you want money for the ultimate goal of being happy.

And if you are a grown-up, you probably know, or will eventually know, that money does not buy happiness. But it sure as hell buys a lot of other stuff.

Money can buy you happiness. But it is not a requirement to be happy. Enough said.

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