Top 5 rules of money – you should know!

Did you know that 64% of millennials (born between 1981 and 1996) live paycheck-to-paycheck, even with higher education degrees? [Source: https://www.experian.com/blogs/ask-experian/research/millennials-and-credit-card-debt-study/]
Have you ever felt like you’re on a money treadmill, running hard but never getting anywhere?

Ditch the Money Treadmill: 3 Ways to Stop Running in Place

Ever dream of finally getting off the financial hamster wheel? You’re not alone. Like many millennials, saving can feel impossible. But here’s the good news: it’s not about deprivation; it’s about building smart habits. Let’s break free together with these 3 easy-to-follow rules:

#1: Automate Your Savings—Become a Saving Ninja, Not a Budgeting Samurai!

Imagine this: a pre-determined amount vanishes from your checking account every payday, magically appearing in your savings. Sounds pretty sweet, right? Automating your savings takes the willpower struggle out of the equation.

Why this rocks: Setting it and forgetting it ensures consistent saving, and you won’t miss what you never see! Plus, seeing that savings account grow is seriously motivating.

Myth Buster: Budgeting Takes Too Much Time!

Nope! Automating removes the need for constant tracking. Think of it like financial autopilot—smooth sailing towards your goals.

Success Story: Sarah, the Latte Art Convert

Sarah used to be a daily latte devotee. By automating a $5 transfer for every latte skipped, she saved enough for a weekend getaway in just 3 months! “It’s amazing what small changes can do,” she says.

#2: Track Your Spending Like a Boss (But Not in a Creepy Way!)

Knowledge is power, especially when it comes to your finances. Many budgeting apps categorize your spending; think of them as your financial detectives!

Why this is awesome: Seeing where your money goes is eye-opening. You might be surprised how many sneaky subscription fees are adding up.

Common Misconception: Tracking Equals Restriction

Not at all! It’s about awareness. Once you know where your money flows, you can make informed choices. Maybe that daily latte habit can become a weekly treat instead!

Personal Anecdote: My Pizza Epiphany

Tracking revealed my weekend pizza habit was silently draining my savings. Now, I make delicious homemade pizzas with friends—it’s cheaper, fun, and a bonding experience!

#3: Embrace the Power of “No” (But Say it Nicely!)

We’ve all been there—the friend invites you to a fancy brunch or that “sale” email tempts you. But remember, your financial goals are worth it! A polite “thanks, but I’m on a budget this month” goes a long way.

Why saying “no” is empowering: It shows you’re in control of your finances. Plus, you can suggest alternative, budget-friendly ways to hang out—think potlucks or game nights!

Remember, you’re not alone!

Let’s face it, saving can be tough. But with these actionable rules and a supportive community (looking at you!), you can ditch the money treadmill and take control of your financial future!

Now let’s jump right into the rules we have promised you

The top 5 rules of money you should know:

Rule #1: Understanding the money game

The Money Game: Level Up Without Feeling Like a Chump

Let’s face it, money can feel like a confusing, never-ending game. You work hard and get paid, but somehow, it always seems to disappear faster than you can blink. Here’s the thing: you’re not alone! Many of us are just trying to figure this whole “adulting with money” thing out.

So, how do we win this game, or at least not feel like we’re constantly losing? Here are some basic rules to keep in mind, all from a player’s perspective:

Know the score: The first step? Figuring out where all your money goes. It’s like checking your stats in a game. Track your spending for a month—there are free apps or just a trusty notebook. Seeing where your cash is flowing is a real eye-opener.

Pay Yourself First: Think of this as leveling up your future self. Automate a savings transfer from your paycheck. Treat it like a rent or phone bill you absolutely must pay. This builds your “gold stash” for emergencies or future dreams.

Build Your Defense: Life throws curveballs—car trouble, surprise medical bills. That’s why you need an emergency fund—like a shield against financial monsters. Aim for 3-6 months of living expenses. Peace of mind is a seriously underrated power-up.

Tame the Debt Dragon: Debt can feel like a hungry beast constantly draining your cash. There are two main ways to fight it:

• Avalanche: Focus on paying off the debt with the highest interest rate first. It’s like taking down the biggest monster first.
• Snowball: Tackle the smallest debt first, even if the interest rate is lower. Seeing those debts disappear can be super motivating, like gaining quick levels. Choose the strategy that fits your playstyle.

Needs vs. Wants: Not all spending is created equal. Some things, like rent and groceries, are essential (think health potions and armor!). But that shiny gadget you saw online? That’s probably a “want.” Learn to distinguish between the two to avoid impulse purchases that derail your progress.

Remember, the money game isn’t about getting rich quickly. It’s about making smart choices today to build a secure and fulfilling future. By following these basic rules, you can level up your financial know-how and become a champion in your own right!

Rule #2: Know where to look

Don’t just look at the company or industry that is booming and touching the sky. Also, try to look out for the company that is falling

Why Looking at Falling Companies Can Be Smart

We all hear about the hot new companies—the ones with skyrocketing stock prices and disruptive technologies. It’s easy to get caught up in the excitement and think that’s the only path to success. But here’s the thing: there’s a lot to be learned from companies that are struggling or even failing.

Here’s why looking at falling companies can be a smart move:

• Lessons Learned: When a company falls, it’s often because they made mistakes. By analyzing these mistakes, you can identify potential pitfalls in your own industry or investment strategy. It’s like learning from someone else’s failed dungeon crawl in a game—you know what traps to avoid.
• Identifying Trends: A company’s decline can be a sign of a larger industry shift. Maybe consumer preferences are changing, or new regulations are making things difficult. Recognizing these trends early can help you adjust your approach and avoid getting blindsided by similar challenges.
• Undervalued Opportunities: Sometimes, a company’s stock price falls due to temporary issues, not fundamental problems. By understanding the situation, you might uncover a potential bargain—a strong company at a discounted price. It’s like finding a powerful magic sword at a pawnshop!

Here are some ways to find information about falling companies:

Financial News: Stay informed about industry news and company performance through reputable financial websites and publications.

Investment Research Reports: Look for research reports from analysts that delve into the reasons behind a company’s struggles.

Industry blogs and forums: Online communities can offer valuable insights and discussions about industry trends and company performance.

Rule #3: Always have a backup plan

The Importance of Having a Backup Plan: Why It’s Your Secret Weapon

Life loves to throw curveballs. Maybe that presentation you poured hours into gets rescheduled at the last minute. Perhaps your car decides to take a vacation on the highway. Whatever the unexpected event, having a backup plan can be your saving grace.

Here’s why a backup plan is your secret weapon:

• Reduces Stress: Knowing you have options in case of trouble keeps you calm and collected. You can focus on solving the problem, not panicking about the consequences.
• Boosts Confidence: A backup plan empowers you to take chances and embrace new opportunities. You know you have a safety net if things don’t go exactly according to plan.
• Improves Efficiency: Even if you don’t end up needing your backup plan, the process of creating it can help you identify potential problems and areas for improvement.
• Saves Time & Money: Quick thinking is great, but a well-thought-out backup plan can prevent costly mistakes and wasted time scrambling for solutions in a crisis.

Backup plans aren’t about expecting failure; they’re about being prepared for anything. They’re like having a spare tire in your car—you hope you never need it, but you’re glad it’s there when you do.

So next time you’re tackling a project, making a decision, or even just heading out for the day, take a few minutes to consider a backup plan. It could be the difference between a stressful scramble and a smooth ride.

Rule #4: Use people’s fear and problems to make money

(Disclaimer: “The strategies mentioned above for using people’s fears and problems to make money are provided for informational purposes only. It is important to approach such strategies with caution and ethical considerations. Businesses should prioritize honesty, transparency, and the well-being of their customers when addressing sensitive issues. Additionally, it is advisable to seek legal and ethical advice before implementing any strategies that involve exploiting vulnerabilities for profit.”

Using people’s fears and problems to make money can be a sensitive and ethically challenging area, as it often involves exploiting vulnerabilities for profit. However, there are some common strategies that people might use:

1. Identifying Market Needs: One approach is to identify genuine problems or fears that people have and offer products or services that genuinely address these needs. For example, sell home security systems to address fears of burglary.
2. Creating Demand: Some businesses might use marketing tactics to exaggerate or create fears to sell their products or services. This can be seen in certain industries, like health and wellness, where fear-based marketing is used to sell supplements or treatments.
3. Providing Solutions: Offering solutions to specific fears or problems can be a legitimate way to make money. For example, offering counseling services for people struggling with anxiety or fear-based marketing for products that solve specific problems.
4. Building trust: It’s important to build trust with your audience when addressing sensitive issues. Providing valuable and genuine solutions can help build a loyal customer base.
5. Ethical Considerations: It’s crucial to consider the ethical implications of using fear or problems to make money. Businesses should prioritize honesty, transparency, and the well-being of their customers.

Ultimately, the key is to ensure that the products or services offered are genuinely helpful and that marketing tactics are ethical and respectful of people’s emotions and vulnerabilities.

Rule #5: Dont listen to the news and don’t get distracted

The advice “Don’t listen to the news and don’t get distracted to earn money” can be interpreted in a few ways, depending on the context:

Focus and minimize distractions:

• It could be a call to stay focused on your current money-making task. The news is often filled with negativity and distractions that could take your mind off what you’re doing. This could be relevant for freelancers, gig workers, or anyone needing intense focus for a short period of time.

Minimize information overload:

• It might suggest avoiding being overwhelmed by constant news updates. Sometimes, the news cycle can be relentless, leading to anxiety and hindering productivity. This could be a recommendation to schedule dedicated news time and focus on your income-generating activities during other times.

Beware of get-rich-Quick schemes:

• In a more extreme interpretation, it could be a warning against falling for scams or unrealistic money-making schemes. Often, these schemes are heavily promoted through certain news outlets or social media. Here, the advice is to be cautious and focus on reliable ways to earn money.

Finding Balance:

• It’s important to find a balance. Staying completely uninformed isn’t ideal, especially if news could impact your work (e.g., sudden market shifts). But staying glued to the news can be counterproductive.

What you can do:

• Decide on a designated news time slot.
• Focus on tasks during other times.
• Research income streams that align with your skills and interests.
• Be wary of anything promising quick and easy money.

Ultimately, the context depends on your situation. If you can share more about your goals, I might be able to provide more specific advice.

Are you ready to break free from the financial treadmill? Here’s how to get started:

Challenge yourself! Try implementing these 5 rules and see the difference. Share your progress in the comments below; we’re all in this together!

Knowledge is power! Want to dive deeper? Check out these helpful resources: https://gainfulinsight.com/how-business-actually-works/

Remember, every journey starts with a single step. As Barbara Friedberg once said, “The only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle.” Let’s apply this to your finances—find a system that works for you and watch your savings grow!

So, are you ready to take control? Let’s ditch the money treadmill and build a secure financial future together!

Want more knowledge about the topic? Let us know in the comments below!