Rules, rules, rules!!! Everything starts with rules. “Rules” is a word that tends to carry a negative connotation with it. No one wants to be limited by rules, because we tend to see them as the things we are limited to doing or things we can’t do. But rules can also be great some times. No, I am not just talking about how they can keep us from getting physically hurt. I am talking about how rules, if we abide by them, can produce a specific output. Sometimes, following the rules, is the only way to win the game.
There are rules for everything, even money. If you follow and understand the rules of money, you will be ahead of the game and put yourself in a better position to be financially successful. Here are seven rules, that when understood, can take you to a whole new level. Let’s get started!!!
Rule 1: Money Is Just The Result
Money is just the result of the effort you put in. We tend to think people become successful overnight. Though that may be true for lottery winners, it is rare that a person becomes financially independent over night. It is often a result of hard work, dedication, and a clear vision over a longer period of time. Just because you just heard of someone overnight, doesn’t mean they just got started yesterday. Money is the result of having a solid plan, an un-relentless commitment to that plan, and a lot of time. Money is just the result of all the effort that most others cannot see.
Rule 2: Money & Happiness Are Independent Of Each Other
People tend to think that, “If I had money, then I would be happy.” Though money can take care of a lot of financial problems in your life, it doesn’t solve all problems. As a matter of fact, if you’re not careful, it could give you problems you don’t want. Too many times families can be torn apart by money. I use to joke that, “Money won’t make you happy, but you can pick your misery.” Though there is some truth to that, it is not entirely true. When you have a lot of money, it doesn’t make you happier or a better person. It just makes you more of who you already are. If you are mean, you will be mean with money. If you are generous, you will be generous with your money.
Happiness can be attained by giving of yourself in an unselfish way. If you can gain money and still be unselfish, you can more easily find happiness. But don’t be fooled into thinking that money and happiness go hand in hand.
Rule 3: Money Gets Bored – It Needs To Move
Money always needs to be moving. It should never be sitting idle doing nothing. If you think of the Pay Yourself First buckets, it talks about putting it in savings, investments, and in charity. “Money makes the world go round” is a popular quote and holds a lot of truth to it. We need to ensure we keep as much money moving as possible. If you want money to come to you, you have to keep it moving and put it out there in the world. Move some money to a savings account where you can earn a bit of interest. Put it into investments like stocks, real estate, or your own education. Don’t forget to give money to worthy charities as well. Keep the money moving, don’t let it get bored, sitting in your checking account doing nothing.
Rule 4: Moving Money Attracts More Money
If you leave your money in a checking account, it will eventually go to someone who knows how to use it. But if you put that money into investments, a strange thing will happen. It will draw more money to itself. With stocks, it will earn dividends or the value of the stock can go up. If you invest in real estate, it can earn you income from rental payments or the value of the property going up. As your money keeps moving, it is like a snowball rolling down a hill, getting bigger and bigger. And that is what we want!!!
Rule 5: You Can’t Keep What You Can’t Handle
Too many times we hear of people who were once millionaires now going bankrupt…celebrities, professional sports athletes, or lottery winners who were able to get a large amount of money but do not know how to hold on to it. You need to understand how money works and make good choices with your money. If you do not, you simply risk losing it all. You have to raise your Financial IQ. You need to know how to move your money to attract more money. Learn to be a seller and not a consumer. Learn how to turn your money into more money. Don’t throw it away just because you have it. Care for it and hold onto it. Live below your means and invest your money. This one piece of simple advice could save countless numbers of people from bankruptcy and financial woes.
Rule 6: Money Does Not Follow Ethics
Some people say that if you just do your best, be good to others, and always do the right thing, you will be rewarded. Now, I tend to believe that if you always do the right thing, you will be happier. But it doesn’t always mean you will be richer. It doesn’t matter if you make money by providing tons of good, positive value to people or if you are promoting some not so good things, you can be rich. Money doesn’t care about the ethics of things. Of course, you want to do your best and do good things. I believe if you follow this, you can have money and happiness. But money itself, doesn’t are about ethics.
Rule 7: Money Goes Where The Attention Is
Money will follow the latest trends and fads. If you can get ahead of these trends and see them as they get started, you can make tons of money. Also, you can save yourself tons of money if you have earned lots of money in one thing and see the trends changing before they change. If you can see where everyone’s attention is going and moving from, you can move your money to where all the attention is going. That is how you grow and grow your money. This is one of the reasons why all passive income is not 100% passive 100% of the time. If you just build something and don’t give it any attention, it could eventually die out, as people move their attention to other things.
The seven rules of money should always be at the forefront of your mind. You need to be aware of these seven rules so you can be sure how to use your money and how to grow your money. Increase your Financial IQ, use the Pay Yourself First Buckets, and keep your money moving. Allow it to attract more. Try to do the right things so that you can also be happy with the money you earn. Live below your means and use your money wisely so you don’t find yourself in the poor house. Always remember, “a fool and his money are soon parted.” Don’t be a fool, learn and follow the seven rules of money!!!