Rules for money


I have made some rules for handling my money. Purpose of these rules is to make sure that I spend money on the right things and that I save money so that I can start really making it someday.

1. Spend less than you make.

This is the first and most important rule for handling money. To stop living from paycheck to paycheck you must stop spending more than you make. So every month you should start to have more and more in your buffer. You will need that buffer, there will be surprises and sometimes you will spend more than you make but you should try to spend less than you make. With time you will start to have big enough buffer so you will be able to not stress about money so much and start to make it work for you.

2. Get out of bad debt.

Any debt that you have that is not for something that makes you money or is not your home that you live in is bad debt. These kind of debt’s are mostly used for thing that lose value right after purchase like cars, electronics or something that has actually no value at all like junk that some people call food. When you don’t have bad debt and you have positive cashflow, check Rule 1 that’s above, you can get to the thing that can make you free and all you dreams of living in the sun true.

3. Make money work for you.

This is the interesting and most exciting part of reaching financial freedom. You must invest your money and make that money work for you. You can work hard, but your money can work harder. You will need to rest but your money won’t. You can sleep and wake up in the morning with more money than you had when you went to sleep with. That is amazing. There are many ways you can make your money work for you. You just need to find a way that works for you.


2 thoughts on “Rules for money

  1. dkmathstats

    With regards to tip #1, it is helpful to be mindful of purchases (especially on credit) and track expenses. Always save money (when possible) for a rainy day or a disaster(s)!


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