1. Pay Yourself First
This is the key to financial freedom! It sounds too simple, but this is the secret. Change your thought process from the difficulty of saving, to the empowerment of paying yourself! You worked hard, you deserve that money. Pay yourself first! At least 10% of what you make is for you and your future. Once you take the first step of Rule #1 and pay yourself first, your world will change. Financial freedom is attainable. Pay yourself first!
2. Control Your Expenses
Learn to live on 90% of your income. Track your expenses and understand how you spend your money. Use a budget. Avoid impulse buys and save for large purchases. Eliminate unnecessary expenditures.
3. Multiply Your Money
Make your money work for you. Put it in an account earning compound interest. Albert Einstein said that compound interest is the most powerful force in the universe. It is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it. Be an earner and allow your money to grow on itself!
4. Guard Your Money From Loss
"Never lose money." That is Warren Buffet's #1 rule of money. What is rule #2? "Never forget rule #1." Protect your principal with the power of the 0% floor guarantee. Avoid speculative investments and opportunities that promise exaggerated returns. Remember, a 50% loss requires a 100% gain to break even.
5. Make Your Home An Asset
When time allows, buy a home. This rule should not supersede the previous four rules, but can bring greater self-esteem and slowly produce an asset for you.
6. Secure A Future Income
Income is everything. The successful result of the previous rules of money is maximum income. Don't wait until tomorrow to begin securing an income for the future. Tomorrow never comes. Start today!
7. Increase Your Ability To Earn
How can you earn more money? Increase your education. Ask for additional responsibility. Start a side business. As you earn more, you can repeat the process of paying yourself first again.