I’m passionate about financial literacy, and I believe everyone deserves access to the knowledge they need to thrive. That’s why I’m sharing these money rules – the ones that have had the biggest impact on my own financial journey. These are the principles I wish I’d learned earlier, and I hope they can empower you to achieve your financial goals.
In no particular order, my Money Rules to Live By…
To get where you’re going, you need to have a goal in mind. There are far too many people who just kind of float through life. But when you have a clear, achievable goal and a timeline, you are not just likely, but empowered to achieve it. Clarity wins every time.
The power of mini-sprints. Looking at the mountain, you aim to climb can be very daunting. It seems much more manageable if you break it up into chunks and work hard until you hit that next milestone. You link together enough mini-sprints and find yourself at the top of the mountain.
Vision board. I know this sounds a bit cheesy, but it does help. I recently was chatting with a woman who went through personal finance training. One of her goals was to get her GED and to get full-time employment in her line of work. She hung a picture of a college graduate going to work on her bathroom mirror. When there are hard days, and there will be hard days, visual motivators like that help you keep your eye on the prize.
Building muscle is just as important. It’s better to start small than not to start at all. Build the muscle of saving and investing, even if it is a small amount. Set up an automatic transfer for $10 a month. It builds confidence that you know what to do, and when you’re able to redirect more money there, it makes it easier.
You need to have a spending plan and watch it. Without one, money will slip through your fingers.
Celebrate your wins, big and small. Winning with money takes time, consistency, and intentionality. Momentum builds when you put in the work day by day. However, it can be discouraging to feel like you’re not making the progress you would like within a specific timeframe. Head this off by building in rewards for yourself.
More money doesn’t always solve the problem. Your income is your most powerful wealth-building tool, so it is very important. However, the flip side of that is that if you spend everything you make, it doesn’t matter if you make $100,000 or $1,000,000; you will still be broke. You need to have a system in place to ensure you’re hitting your goals.
Spend money on things that you love and that bring you joy. Reduce or eliminate the rest. This takes very intentionally. Start by tracking your spending for a few weeks. It can be eye-opening how much you spend on things you don’t care about. When you know where your money is going, you can consciously make decisions about where you want it to go. When you do have something that you love, spend joyfully on it! 🏄
Carefully consider your career path. Choose a career that will be fulfilling and will be able to provide you with the lifestyle you desire.
Live beneath your means. Be very mindful of truly living beneath your means. Our society has a way of promoting a “payment” lifestyle. People think, “If I can afford a $400/month car payment, I can afford the car”. It’s the same with their house. It’s the same with their iPhones. Same with credit cards. The next thing you know, all your income goes towards payments. Shift your mindset to only being able to afford something you have the cash to pay for, and even then, do you need it or want it?
Don’t avoid lifestyle creep. Just plan for it. Unless you are into FIRE (Financial Independence, Retire Early), your lifestyle will likely creep up as you earn more money. You likely are not still living in a studio apartment with a roommate eating ramen like you were in your 20s. That’s okay. You are older now, have more income, and have different objectives. Enjoy this season of your life; just make sure you plan to hit your goals. 🍣
Invest early; invest often. Some people assume that they will tackle investing and saving when they make more money. It is best to start investing when you’re young because you have time to let the power of compounding interest work for you. Just start. It can be a little bit. Make a habit of investing/saving every time you get paid. 💵
Pay yourself first. Live on the rest. I realize that this is easier said than done, but make a habit of always paying yourself first. It’s even better if it automatically happens so that you don’t see it, feel it, or think about it.
Automate whenever possible. This advice is coming from a busy business-owning mom of three kiddos. Fun fact: My youngest daughter was born on December 29th, 2016, and my husband and I started a business in January 2017. We went on to grow that business to over 5 million in revenue in 6 years and sold it in 2022, so yes, I was very busy. Moral of the story: Do not leave anything to chance; automate it and move on.
Choose your spouse wisely. This decision will significantly impact the rest of your life, including, but not limited to, your finances. Marry someone who has values and goals similar to yours. 👰
Avoid consumer debt like the plague. I learned this the hard way after finding myself deeply in debt and having to dig my way out. Debt is normalized in our society, but life without it is way better. It’s a relief to know that you’re not tied down by debt, isn’t it?
Saving for the future will improve your life NOW. The more cushion you put between yourself and life, the better you will sleep at night.💤 It’s a reassurance that you’re prepared for whatever life throws at you.
Question your internal money scripts. Clients often say, “I could never afford that,” or “You can’t grow a business without debt.” These are examples of internal money scripts, which are usually formed in childhood and can be a huge motivator in making decisions. The funny thing is that they are most often not accurate. When you say something like that, stop and ask yourself, “Is this true?” “Is there another way to think about it”? “What if I did it differently?” The results can be astonishing.
There cannot be ONE money person in a relationship. Having a spouse who is not on board with your money plan is like rowing in two different directions. You won’t go anywhere. Have the conversation. Set the goals. Compromise when needed. Start rowing together.
Just because everyone else is doing it does not mean it is right for YOU. There is always more than one way to go about achieving a goal. And what worked for one person may not work for you. That’s okay. It is all about finding a program that works for YOU.
Knowing what to do and doing it are two different things. Most people have a general idea of what they should do. To lose weight, you need to eat less and work out more. And yet, there is an obesity epidemic in our country. Having too little information is usually not the problem; it is the application of that knowledge.
Having FU money is very liberating. If you’re unfamiliar with FU money, it means having enough money set aside to say “FU” to a situation that doesn’t serve you. I like the idea but didn’t come up with this term. Frankly, it is a little brash for my liking, so I crowd-sourced the term on LinkedIn, and the hive mind came up with Independence Cash, Opportunity Capital, Exit Fund, Empowerment Account, Daring Account, Freedom Fund, and Adventure account. You get the idea! Pick the phrase the best suits you!
Phew…that’s a lot! Do any of these resonate with you? Let me know if you would add anything to the list!
