10 New Rules Of Money You Need To Learn Now!

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New Rules Of Money: Buying scads of shiny new toys is fun, but the end of the month brings bills and headaches. Higher earnings won’t solve your problems until you learn these new rules of money . Running a household is not playing house, and managing money is not a game. Get what you want without the stress by practicing sound money management principles.

1. Add your raise to your savings account. 

Once you’ve achieved a salary that funds a lifestyle you’re content with, don’t move significantly above that. When you get a raise, put it into savings rather than spending it. This can help avoid the problem of lifestyle inflation, while growing your savings significantly.

2. Divorce time from money.

There’s something the working class doesn’t understand about money. No wonder it’s one of the rules of money I never heard growing up. Heck, I think the middle class barely understands it. As long as time and money are tied together, your income will be limited.

Growing up in a working-class town, we understood money in units of hours.

If someone wanted to express to you just how rich someone was, they would give you their value in time. John makes $70/hour as a crane operator. Kane makes $56/hour operating an excavator. These people were the inconceivably rich ones.

Truly wealthy people learn to divorce their time from money. They build systems, machines that earn them money when you’re not working.

Whether you like him or not, when you buy something on Amazon, Jeff Bezos gets money. Let that sink in. Yes it’s obscene that he’s so wealthy, but you and I made him that rich! (And the company doesn’t pay taxes… which are a different story.)

 Michael Jackson’s songs are still making money, long after he died. Apparently, his estate made $74 million in 2015.

Inventors who license their patents make money when a company sells their product. When I lived in London, there was an incredibly wealthy man who cruised around in old cars and lived on a beautiful estate.

His father developed the technology that would lead to the birth control pill, and his son lives off the royalty’s decades later. In the same vein, authors who write books make money when someone buys that book—no matter what they are doing at the time.

The internet Of things

The internet has birthed a whole new generation of people who can separate time from money. Youtube stars, Instagram influencers, Twitter thought-leaders, LinkedIn voices, as long as their platforms are monetized in some way, through selling products, marketing for affiliates, or advertising, are making money regardless of whether they’re awake or sleeping.

3. Pay Off Debt

Get the monkey permanently off your back. Pay down and pay off debt, as Dave Ramsey recommends. Using Ramsey’s debt snowball, list every debt you owe, smallest to largest. Practice strict frugality to free up mega-cash and put extra money on the smallest debt each month, while making minimum payments on the other debts. When that debt is paid off, work on the next largest and so on. Finally, pay off the mortgage.

4. Pay yourself first. 

This is an old rule of thumb that helps you save, rather than spending all your money. Even if your budget is tight, as soon as you get paid, put some money into savings. Saving first, rather than last, means you’re much more likely to save money instead of spending it.

5. You must fight for a better money mindset.

 I was raised to think “there’s never enough money,” and we’d scrape by on what we had, going without most things in the process.

Furthermore, as religious people, my parents would moralize our poverty. We were “content with what we had,” implying that desiring more would be sinful.

We knew that “the love of money was the root of all evil,” and “God provides what we need.”

Since nearly everyone in my town was poor, the rules of money I learned from my blue-collar peers to hate the “rich mothaforkers” who owned the mines or the mills, and usually lived in fancy neighborhoods.

Then, when I finally broke free of my impoverished past and went to university,

I learned from professors that the rich were exploitative and lived off the poverty of others. During my journey, I fortunate along my journey, to meet some wealthy people. I realized something about them pretty quickly. They weren’t greedy or evil. In fact, they were some of the most generous people I’d ever met. They made their money running businesses that employed people, putting food on the tables of dozens of families that wouldn’t be there if they hadn’t started their business.

Wealthy people, in fact, drastically repositioned my own understanding of wealth. I came to realize that wealth doesn’t make you good or bad. It makes you a bigger version of who you already are.

People who jerks become wealthy jerks, people who are generous become wealthy and generous. If you are filled with goodness and kindness, money amplifies your ability to be kind.

Your beliefs about money will dictate your relationship towards it. If you believe, even subconsciously, that having money makes you bad, or greedy, or is unspiritual, it’s not much of a surprise that you will live in poverty.

You’ll sabotage your own financial success to get back to that place. If you believe that you’re a good person and that money could both give you a great life and amplify your goodness, you will likely begin to acquire some.

It’s one of the most important rules of money I never learned.

For those of us who were raised poor, this mental shift is not easy. It’s difficult to de-program all the money mindset you’ve learned over the years.

But it can be done. Read money books. Get around wealthy people you admire, either in person or online. Try to identify where your beliefs about money came from. Ask yourself why you have them and if they’re serving you well. And start to change them.

6. Save for retirement first, and your kids’ college expenses second. 

This is counterintuitive for parents who spend their lives putting their kids first. But remember: your child can borrow, if need be, for college. You cannot do the same for retirement.

7. Set And Achieve Goals

Set financial goals with your partner for the short and long term. Put them and a plan to meet them in writing. For example, save for a dream vacation, pay off the mortgage, save for retirement and build wealth.

8. The age rule for stocks

When investing, bonds are generally less risky than stocks. So the rule follows that the older you get, the less you should invest in stocks. To put a number on it, subtract your age from 120, that’s the percentage of your portfolio that should be invested in stocks.

Why it works: It gives you a general idea of what your asset allocation should look like, based on your age.

Why it doesn’t: This rule doesn’t consider the incredibly low interest rates  we have had to contend with in recent years. It also assumes your retirement based on your age. If you’re planning to retire sooner, you’ll need to adjust.

If you want to get a better idea of how much you should have saved in stocks and bonds, consider using an online tool like Portfolio Visualizer or Personal Capital to help you visualize your retirement planning.

9. Savings and Investing

Save three to six months’ expenses in an emergency fund There are lots of different rules of thumb for this one, but this one makes the most sense for the most people. Remember, this is expenses not income And if you’re in a volatile field of work or the economy is in a downturn, consider saving eight or even 12 months’ worth of expenses.

. Use the rule of 72 to determine how long it will take your investment to double.  To use this rule, divide 72 by the expected growth rate of your investments, expressed as a percentage. If you expect to earn 10% per year, for instance, it’ll take you about 7.2 years to double your money.

 Aim to have your portfolio double about every ten years. How do you know if your investments are on track and growing well? One rule of thumb is that your portfolio, if well-managed, should double about every ten years. Your mileage may vary, of course, but if you’re not even close to doubling after a decade, consider rebalancing your investments.

10. Student Loans

The first-year salary rule

You shouldn’t take out more in student loans than you expect to make your first year on the job.

Why it works: It ensures you’re taking out an affordable amount that you’ll be able to repay.

When it doesn’t: Skyrocketing tuition rates have made following this rule a challenge, as have unemployment rates right after graduation.

This is a sticky and complicated topic. As we’re in the middle of a student debt crisis, not to mention a recession, it’s easy to dismiss this rule. But it’s important to have a realistic idea of what your income and repayment are going to look like after college, especially as it relates to your major. You’ll also want to compare the cost of an education at different universities to get a better idea of what you can afford.


Most of these new rules of money are pretty solid, tried-and-true methods for planning your finances. But again, personal finance is, well, personal. Consider these rules a good starting point—to really stay on top of your finances, research and personalized planning is a necessity.

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