7 Rules of Money: How To Be Good With Your Money

7 Rules of Money: How To Be Good With Your Money

The dream of financial success doesn’t have to be elusive. There are rules of money that will cause you to raise your net worth and give you financial peace. Winning at money is something most people strive for, and yet, so many find themselves struggling to make ends meet. There is a simple path to being good with your money. I’m here to share with you some hard-earned wisdom that’ll help you become a master of your finances. These seven golden rules will help you navigate the treacherous waters of personal money management and make the most of your hard-earned cash. So, let’s dive in and discover the secrets to financial success.

The 7 Rules of Money

1. Pay yourself first 
2. Saving will not make you wealthy 
3. You must live within your means
4. You must have an emergency fund 
5. Use debt wisely 
6. Learn skills that can be monetized
7. Money alone will not make you happy 

Pay yourself first

Now, this is the first rule for a reason. You should put a portion of your paycheck into your savings and investment accounts when you get your paycheck. Do this first. Why, you ask? Because it’s a surefire way to make your money work for you. And it doesn’t have to be much – even just 10% of your income will do wonders over time. The key here is consistency. You are your most important bill. If you’re not working for yourself, who are you working for? If you can’t pay yourself first then you are working for bill collectors and are likely deeply in debt or have a very low income. If you can’t pay yourself first then your first priority is to either increase your income or lower your bills. Whatever it takes. Trust me, your future self will thank you for it if you pay yourself first.

Saving will not make you wealthy

Sure, saving money is essential, but if you aim for wealth, you must think beyond your piggy bank. Building wealth requires investing your money and creating businesses. That’s where the magic happens. Think stocks, real estate, or even your own business. To be good with money, you must convert your earned income into investments and assets that increase in value over time and/or cash flow.

It’s also not good to hold a large amount of cash in savings above the amount needed for an emergency fund because the incredibly low-interest rates you are paid don’t keep up with inflation. Currencies are designed to devalue over time as more and more money is printed. You lose purchasing power on savings accounts over time. You must invest money where it can hold its value over time and, better yet, increase with returns.

Remember, fortune favors the bold – so don’t be afraid to take calculated risks and invest in your own thing.

You must live within your means

You’ve probably heard this one before, but it’s worth repeating: don’t spend more than you can afford. A champagne lifestyle on a lemonade budget will only lead to financial disaster. Instead, be honest about what you can and can’t afford. This might mean cutting back on certain luxuries or finding creative ways to stretch your dollar. Ultimately, a modest, sustainable lifestyle will bring you much more satisfaction and peace than constantly being under financial pressure from large payments and debt. It doesn’t matter how much you make in income if you spend it all and remain deeply in debt. You must have extra income left over to create an emergency fund and acquire investments, which can only come from living within your means.

You must have an emergency fund

Life has a funny way of throwing curveballs at us. That’s why it’s crucial to have an emergency fund tucked away. Aim for at least three months’ worth of living expenses – this will give you some breathing room if you ever face an unexpected financial setback. A solid emergency fund is like a financial safety net, providing peace of mind and stability when things get rocky. This isn’t investment money; this cash serves the purpose of giving you financial peace and being ready to take care of any significant expenses that arise without needing to go into debt. You can also be self-insured instead of buying small insurance policies on appliances and electronics.

Use debt wisely

Contrary to popular belief, debt isn’t always a bad thing. When used correctly, it can be a powerful tool to help you build wealth. The trick is to use debt only for appreciating or cash-flowing assets, like real estate or a business investment. This way, you’re leveraging debt to create more income rather than digging into a hole. So, next time you consider borrowing money, ask yourself: will this debt help me build wealth or lead to more financial stress? Never use debt to acquire depreciating consumer goods wait until you can pay cash.

Learn skills that can be monetized

Work to learn, not just to earn – that’s the motto you should live by. Focus on acquiring skills, experience, and knowledge to help you make money in the long run. For example, learning about publishing, coding, or investing can open up new revenue streams and set you apart from the competition. So, never stop learning and growing – it’s the key to staying ahead and achieving financial success.

Money alone will not make you happy

Last but certainly not least, remember that money isn’t the be-all and end-all of happiness. True contentment comes from finding meaning, purpose, passion and making a difference in the world. Sure, having money can make life more comfortable, but it’s not the sole key to happiness. Focus on cultivating relationships, pursuing your passions, and giving back to your community. These things will bring you true fulfillment and joy, far beyond what any bank account can provide. Many times money is the side effect of doing what you love. Few people get rich doing what they hate for a living. Money makes you more of what you already are.

Money amplifies your feelings, ego, greed, fear, generosity, and principles for good or bad.

Key Takeaways

  • Prioritize saving by paying yourself first
  • Aim for wealth creation through investments and businesses, not just savings
  • Maintain a lifestyle you can afford without relying on debt
  • Establish an emergency fund for financial security
  • Use debt strategically to acquire appreciating or cash-flowing assets
  • Continuously develop valuable skills to increase your earning potential
  • Seek happiness through meaning, purpose, and giving back, not just money


Mastering your finances isn’t an impossible challenge. By following these seven rules, you’ll be well on your way to achieving financial success and cultivating a life of happiness and fulfillment. Remember, the journey to financial mastery is a marathon, not a sprint. Stay consistent, stay focused, and never stop learning. By doing so, you’ll unlock the true potential of your finances and create a future that’s not only prosperous but also rich in meaning and purpose.