7 Rules of Money
How much money have you made across your working life? It could be $50,000 dollars. It could be a million dollars BUT how much is actually left in your bank account today? If the answer is ‘not a lot’ then this video is for you because I’m revealing the 7 rules of money that if you follow, have the potential to make you exceptionally wealthy.
In fact, if you put these rules into practice you’ll be shocked at how quickly your earning potential can grow. Each of these rules builds upon the one before it, and as you start following each rule, you unlock the next one to hit that next level of wealth. These are different levels that all people operate at and the richest people in the world have managed to implement all of these rules at one point or another.
Rule #1: It can be learned
The first thing you need to understand is that making a lot of money is something that can be learned, there is no grand secret hidden by the illuminati here, we can literally just look at what the wealthiest people on the planet are doing and replicate those same strategies albeit on a smaller scale. The average person going through life thinks that only special people can make a lot of money but the fact is your beliefs directly impact your actions, you can only do what you believe you can do, so if you don’t think you’re capable of learning how to make a lot of money then you won’t. This is a vicious and depressing cycle that can only be broken by finding examples of people in a similar situation to you who have made money and making yourself believe. Once you believe it can be done, you tend to think that only bad people do it.
Rule #2 Money is just a tool
Most people have the mindset that money is some kind of evil thing that rich people get, by doing evil things. Sure, maybe in a small number of cases, but the majority of people who make a lot of money do so by bringing value to the world so saying “I would get rich, but I don’t care about money, or I would get rich, but I’m not evil” is just an excuse by poor people to stay lazy. The fact is money is simply a tool, you use money to get goods and services, that could be a new rolex or giving to charity, it’s up to you. But feeling like money is evil is simply an excuse to stay in your current comfortable situation. You have the knowledge that it can be learned but your negative view of it stops you from taking action in the first place. Once you get over that and see making a lot of money as a positive because of what you can do with it for yourself and others you’re ready to move to rule number 3.
Rule #3 It’s in your control
Remember, that while you may not be able to control how much money you earn right now, you have direct control over how much money you can earn in the future. Think about it. Even if you only earn a small income and spend all of that income right now, you still control your earning potential in the future. First of all, look at your spending, figure out where you could cut down on that spending, we all think it’s not possible but have you really done a deep dive into your spending habits?
Then think about what you’re spending money on, is it being wasted on pizza and video games or are you investing it into yourself or putting it to work in the stock market. Because everyone starts from somewhere. We have the ability to spend less, save more, invest more into ourselves and put our money to work for us so that our future selves generate more money. The fact is the potential is there, it’s in your control, you just need to put in the effort now to enjoy the rewards in the future. So knowing it’s possible to make a lot of money, knowing that it’s a good thing, and knowing it’s largely in your control how much money you generate gets you ready to take action.
Rule #4 Spending: The Monks Budget
The next rule is all about budgeting but not in the way you think. Because having a budget is all well and good but your mindset around that budget will make or break your success at sticking to it. Buddhist monks renounce all worldly possessions, they can own robes and a bowl, ok, and they’re happy. I’m not saying you need to become a monk, but this is a video about making money, and if you’re serious about your goal you’re going to make some serious decisions here because having a little minimalism in your life will only help in the long run.
Have you heard of the hedonic treadmill? It’s the tendency for humans to quickly return to a stable level of happiness even after major positive or negative events or life changes. So when you’re creating your budget, I really want you to analyze what you want versus what you need. Do you really need the fancy brand name coffee? Do you really need to drink alcohol to have a good time? You need to create the most minimal budget possible to free up your money to actually work for you and create passive income down the line. So you sit down and analyze all of your expenses and come up with a budget that works for you.
Rule #5 Making: Maximizing your labor
Once you’ve created a sustainable budget that minimizes your spending to your true bare essentials you’re going to have some additional income to invest into places that will make you the money you want to live the lifestyle you truly want in the long term. But the next place to look to making money fast is maximizing your labor. Not everyone wants to be an entrepreneur and build a business, and even those that do need to start by trading their time for money so as to generate the money required to invest in building their business. So now we need to take a look at your job.
First of all, if you don’t have a job, but you have the time, we need to change that. When I was at university I thought it was impossible to work a part time job while going through my studies so for 3 years I went along without any job. That’s 3 years I could’ve been making money! Because when I finally did end up getting a job I realized I actually did have a couple hours a few days a week to make a bit of extra income and that made all the difference when it came time to start building my business, if I had just got started 3 years earlier imagine how much faster I would have achieved my financial goals! So if you don’t have a job, get a job, if you don’t have time for a job, try and make some time.
Now if you have a job, you need to figure out if you can work more hours. If not then you should absolutely be in the job market looking for other opportunities that might give you more money or better circumstances. Because if you’re watching this video you’re clearly not satisfied with how much money you’re making. If you like your job, that’s fine, you should ask for a raise, go to your boss and ask if they have a minute to talk and simply say “look, I love my job, I love being a part of this company, and I want to give more to it, I’d like more responsibility and I’d like a raise” and see what they say, if their response is very negative then sure, keep the job, but enter the job market and find a better job to maximize the labor your putting in.
Rule #6 Investing in yourself: Earning Potential
Once you’ve gotten to the point where you’ve got a budget to keep your spending in control and have maximized your ability to generate income via manual labor with the time you have you need to expand your earning potential. Because sure, you can save a bit of money over time with those two things but your progress to wealth will be slow. The next thing you need to do is invest in yourself. The knowledge and skills you possess directly relate to how much money you have. And the skill with the highest possible earning potential is being a high performing entrepreneur.
So how do you go from a normal everyday person to someone who can organize resources in a way that generates economic value? Aka makes a lot of money. Well, it all starts with those first 5 rules but once you’ve got the right mindset about money and a strong reason why you want to make a lot of it, you need to determine what kind of business you want to build. So you dedicate a chunk of time each day to figuring out what business model will be best for you. Come home from work and start by doing research online, building your knowledge about business, reading books, and researching what time of business is best for you. Creating a plan for how you’re going to make money and escape from the rat race of trading your time for money.
Actually invest in yourself and expand your own skill sets. This simply means when starting out studying what you’re going to do, planning out what you’re going to do, then actually taking action and committing to making money. Going this road isn’t for everyone, but unless you’re on a career path you’re happy with, that’s going to make you a lot of money, and you care about making a lot of money, then you need to start figuring that out. So commit to building a business, put in the work, and make it happen.
Rule #7 Putting your money to Work: The Secret of compound Interest
Once you’ve got to the point where you’ve maximized how much money over a given period of time you need to figure out how to take that money you’re making and put it to work, money doesn’t like just sitting there, it likes to work, and if you leave it sitting there inflations are going to eat it away. So once you have that dream career path you wanted that’s making you a lot of money or that dream business you built that’s making you more than you could imagine, it’s time to take that money and put it to work with investments.
This can include things like stocks, bonds, commodities such as gold, crypto, and real estate. If you leave your money sitting in the bank earning a low interest rate you’re probably going to be losing it over time due to inflation eating it. But when you reinvest your earnings into a diversified portfolio you can potentially generate much higher returns over the long term. Once you get this going, you can create complete passive income through the interest, and thanks to compound interest, this growth can be exponential. Compound interest means earning interest on your original investment as well as on the interest you earn, resulting in the exponential growth of your investment over time.
Let’s say you invest $1,000 in a savings account that earns 5% interest per year, compounded annually. After the first year, you would earn $50 in interest (5% of $1,000) for a total of $1,050. In the second year, you would earn 5% interest on $1,050, which equals $52.50, bringing your total to $1,102.50. Over time, your investment would continue to grow exponentially as you earn interest on both your principal and the accumulated interest.
So, if you realize that making a lot of money can be learned, it’s a good thing, and it’s in your control whether you do it moves you forward to creating a budget that allows you to spend less than you make, expand your ability to command higher pay for your labor and then escape labor to create a business with the end goal of taking that money to invest in things that will generate you passive income long term. These are the rules you need to follow if you want to make a lot of money.