10 RULES TO GET YOUR MONEY RIGHT
If you want to get your money right here are some of the money rules that can help you as shared by Grant Cardone.
Rule #1 Never spend it until you get it.
One of the mistakes many people run into is spending money that they haven’t gotten. This behavior of spending tomorrow’s money is deleterious to your financial fitness. Never count on money until it’s in your hands, that is only time you can spend it. This also means that consumer debt should be shunned. Don’t ignore this money rule, otherwise you will be trapped in debt.
Rule #2 The 40% rule
If you can do this money rule the 40% rule which many people don’t get. If you get 100% of your money and 40% goes to tax, this means you should also be able to pay yourself 40%, you do that to the government why not pay you at least 40%. Everybody pays 40% to IRS, in fact, they get it before you even get paid.
Live on 20%, and this is where it becomes difficult, you live on the 20% and don’t change your standard of lifestyle until the 20% changes. You need to be disciplined with your money.
If you cheat on your money it will cheat on you, you ignore your money, it will ignore you. If you don’t take care of your money, it won’t take care of you. You have to pay attention to the money. This is the thing;
- IRS 40%
- You 40% and
- Live 20%.
If you’re in the business you spend that 40% to improve your business, feed the beast as he calls it in the Be Obsessed or Be Average.
It is difficult to live on 20% and that is where the catch is because many can’t live on 20% so they have 3 choices, they either;1.
- Lower the standard of living
- Control the standard of living or
- Increase 20% to 100%
Rule #3 If you can write it off don’t buy it.
If you can’t write it off don’t buy it, you don’t qualify, but if you can be able to write-off, you are more inclined to buy it. So many people are in debt because they have violated this money rule.
Rule #4 Rent and lease don’t own
So many people are so determined to own a house, and there is nothing wrong with that, but there are inherent charges that come with owning. One of the charges is maintenance and legal fees.
In other words, when we live in the house we have purchased, we are increasing our liabilities because, apart from paying the mortgage (with interest) to the bank, we are adding to the cost of the house through maintenance and upkeep. In the end, this increases the overall cost. It would, therefore, be more beneficial to rent out the house and rent a smaller apartment, or lease. This ensures no extra charges you incur; all charges are handled by the property owner. If you want to own you should pay for it in cash.
Ramit Sethi (I will Teach You To Be Rich), Anton kreil (Secrets To Financial Freedom), Robert Kiyosaki (Rich Dad Poor Dad, says a house is a liability because it takes money out of your pocket) …are a proponent of rent or lease money rule.
Rule #5 Stabilize and grow your first flow before adding a second one.
Don’t go work on a second flow outside your company, work on your second flow inside your company.
Instead of using your time to figure out a side hustle or to work on it use that time and energy to work on what is already working. So many people resent what do so they’re always looking for a side hustle. “You need a side hustle,” this is what is being preached all over the place. Mr. Grant advises people to stabilize and grow that first source of income, focus on what has proven flow of income, with intention of growing it and expanding it. Grant Cardone suggests that we get good at and continue to grow our “first flow” before adding a second one.
Rule #6 The 47 Rule
The 47 rule, this money rule says if you put 40 hours a week working for somebody, you should at least put 7 hours working on yourself, read books, that is how you’ll get an edge. Super successful work for 80-100 hours. The more production time you can put into your business the more you will produce in a shorter period. Elon Musk once said that if you put more hours into your craft you accomplish in 6 months or what takes other 2 years to accomplish. Elon Musk believes that Nobody ever changed the world on 40 hours a week.
Invest time reading, every super successful person that built billion-dollar businesses are reading and they got smart people around them. People like, Mark Cuban, Warren Buffet read 3-4 hours every day. That is how they make billion dollars. You must read books.
Rule #7 Always Stay Broke
Cash is garbage. Cash it trash take it out use it. It is worthless until it is put to work. That is why it is called currency for a reason. This means it flows. Money must be in circulation. Put it to work by buying assets, invest it.
Rule #8 Never lose money
If you stay with the money, you will lose money. If your money is staying idle you are losing money. Keep an eye on your cash and move it into high-producing assets. Inflation is a superpower when it comes to destroying the value of money.
Rule #9 You Want Cashflow, Not Cash
Cash flow is the money that flows monthly or yearly. It is the net amount of cash and cash equivalents being transferred into and out of a business. Cash received represents inflows, while money spent represents outflows. Operating cash flow includes all cash generated by a company’s main business activities.
Investing cash flow includes all purchases of capital assets and investments in other business ventures. Free cash flow, a measure commonly used by analysts to assess a company’s profitability.
Rule #10 Never Quit Until You Achieve Your Goals
Never give up on your financial goals. Embrace the abundance mindset and shun all scarcity mentality and saying that reinforce scarcity mentality. Quotes that reinforce scarcity
- Penny saved is a penny earned
- Save for a rainy day
- Eat all your food
Mental scarcity is dangerous and will inhibit you from achieving your financial goals. Those are simple money rules but are very profound. Read Grant Cardone the Millionaire Booklet is will help you a great deal. You can watch Grant Cardone’s 10 Rules to get your Money Right.