The following is a transcript of a video we found to be useful on your search for ways to make money. We believe these rules are to be considered. Obviously, the author of this video has his own point of view but it's up to you to make the decision and apply them in your life. The link of the source will be at the bottom of the post.
"One of the keys to building a rich life is to create a few simple guidelines around what to do with your money. Think about it: on any given day, you're faced with a hundred financial decisions. Should I buy this type of chicken or that type? Should I pay off my debt earlier or not? Should we buy a house or rent?
What you want to do is build your personal philosophy on money so you can narrow down all your options and have an easy way to make these big decisions. I call them Money Rules, and I want to share my 10 Money Rules. These are my actual rules that I use to make big decisions with my money. Before you read, remember these are just my rules. Some of them may sound weird, and some might even sound totally ridiculous. That's okay. Money rules should fit you like a handmade glove.
Here are my 10 Money Rules:
1. Always have one year of emergency fund cash. Typically, people in the personal finance world recommend 3 to 6 months of an emergency fund. For me, I prefer to be more conservative. I want to know that if something really bad happens, I have extra cash available to tide things over. During COVID, many people panicked because they didn't have an emergency fund. When I say cash, I don't mean money sitting around in my closet—it's in a bank account, it's liquid, and I don't care about the interest. If a one-year emergency fund seems extreme to you, adjust the numbers. Start with a month, work up to 3 months, maybe 6 months. It's up to you.
2. Save and invest 10% and 20% of gross income, minimum. In my conscious spending plan, I talk about saving 5 to 10% and investing 5 to 10%. As you make more money, you should increase those numbers. True wealth is created by investing, so I'm aggressive about taking money and investing it. Not everyone will be able to save 10% of gross and invest 20% of gross income right away but start where you can and aim to increase it by 1% each year.
3. Be able to pay in full for large expenses such as a wedding, honeymoon, and a house. This rule is about planning ahead and saving for significant expenses before they happen. It's not realistic for most people to buy a house and pay for it in full, but the principle of saving in advance will always be valuable.
4. Never question spending on books, appetizers, or donating to charity. Creating rules that are permissive rather than restrictive can be empowering. For example, if I see a book that interests me, I buy it without hesitation. This rule also applies to appetizers when dining out and donations to charity.
5. Fly business class on flights over four hours. This rule is simply because I want to and can afford it. It’s a personal luxury that I value and enjoy.
6. Buy the best and keep it for as long as possible. This applies to things that are important to me, such as clothes, tools, and gadgets. Buying high-quality items and maintaining them over time can be more economical in the long run.
7. No limit on spending for personal development. Investing in personal growth is invaluable. Whether it's an online course, a personal trainer, or a new skill, I believe in the limitless benefits of self-improvement.
8. Earn enough to work only with people I respect and like. The people you work with can greatly affect your quality of life. It’s important to me to work in an environment where I respect and like my colleagues.
9. Prioritize my time outside the spreadsheet. While optimizing finances is important, living a rich life means spending time away from the computer, enjoying activities, and being with loved ones.
10. Marry the right person. This is one of the most significant financial decisions you will ever make. The right partner will share your values and approach to money, which is crucial for a harmonious life together.
These are my personal Money Rules. They are about saying yes more than saying no. Take my money rules and tailor them for your life, values, and priorities. Your rules should be specific enough to be meaningful to you, even if they seem weird or ridiculous to others. Remember, they should fit you like a handmade glove. "
https://www.youtube.com/watch?v=m4ZT1EEU0Nw
