Personal Finance 101: The 48 Laws of Money

I’m always getting asked about the general rules of personal finance, mostly by people looking to take shortcuts on their journeys to financial self improvement.

The fundamentals. The non-negotiables. The basics of top tier money management. And I’m ashamed to admit, I’ve often struggled to find a simple answer.

So instead, I’m writing one, and here it is. Everything you need to know about money, in one straightforward blog.

Here are The 48 Laws of Money, courtesy of The Financial Revolution

1. Money is not a store of value.

It’s a medium of exchange between parties for goods and services.

That’s it.

If you want to build wealth, you need assets, because cash is always losing purchasing power.

2. Money can buy anything.

Material goods of course, are the one thing that first comes to your mind.

But, you can also buy things you can’t see like time, freedom, and happiness.

As long as you know what makes you happy, you can buy it.

3. Never spend money you don’t have.

Every time you borrow money, you’re robbing your future self.

Banks & lenders profit from the financially irresponsible.

Don’t let this be you.

4. The word currency comes from the term current.

Like an electrical current, meaning money is not meant to be kept in one place.

Currency is always losing value, which makes it easy to spend.

This is fine, but you’ll never be able to build wealth with cash.

5. You cannot make money.

You’re not a central bank, so become familiar with the idea of taking, not making money.

You need to provide something in return for money…

Value.

6. Start investing as soon as possible.

With a long term mindset, there is never a bad time to start investing.

You don’t need to wait for the perfect moment, or for when you have more money.

The best thing you can do for your finances, is start.

7. What you do with your money is most important.

Income is crucial, but there’s little use of a high income if your spending habits suck.

How much you make is important.

But, it’s what you do with it that matters.

8. Treat your financial situation like building a house.

Build a strong foundation to be prepared for anything that life throws at you.

Worry about the cool stuff later.

9. Material possessions aren’t a sign of wealth.

Anyone with a decent income can buy luxury goods nowadays.

They’re no longer the status symbols that they once were.

The biggest sign of wealth is how much control you have of your time.

There’s no point owning a Rolex if it’s just gonna tell you when your lunch break ends.

10. Account for inflation when making large purchases.

Just because you can buy something, it doesn’t mean you should.

You’ve always got to account for inflation when making big, long term purchases like a home or a car.

Don’t buy a house or a car only to realise a year later that you cannot afford it.

11. Invest in yourself.

If you don’t want to invest your money, that’s fine.

But, there’s one thing everyone should be investing in:

Themselves.

You’re guaranteed to get a great return, so invest in your physical, social, financial and mental health.

12. Money can buy you happiness.

Money can buy you the time you need to spend more of your life doing what you love.

As long as you know what makes you happy, you can use money to get there.

13. Not all debt is bad.

It depends on what you’re going to get in return, but for the average person, it’s best to avoid it at all costs.

Always consider the ROI when investing.

Is it more beneficial to you? Or the lender?

14. Money is a terrible master, but an excellent servant.

Pay attention to your money.

If you have money problems, don’t pretend they don’t exist, and hope they go away by themselves.

If you look after your finances, they will look after you.

15. You can’t build wealth by saving.

Money is always losing value, as supply, and therefore prices, go up.

Inflation will eat away at your wealth, so get your money into assets immediately.

Do rich people hold loads of cash? Didn’t think so.

16. You can never have too many streams of income.

The more income streams you have, the more secure your future is.

The more you have, the less risk you have of financial strain.

Don’t build more just for your finances. Build more so you can sleep better at night.

17. Wealthy people get wealthier because they buy assets.

Assets put money into your pocket.

Poor people get poorer because they hold cash & liabilities.

Liabilities take money out of your pockets.

It’s a simple conclusion: spend more on assets, and spend less on liabilities.

18. Nobody cares about your instagram posts.

Don’t buy to impress others.

Spend to make yourself happy and more secure.

Nobody cares one bit about your new car or luxury holiday.

So, spend for you.

19. Pay attention to where you spend your money.

Most of the money you spend will end up in the hands of a billionaire.

Be mindful of where you spend.

Are you trying to make yourself wealthy? Or other people even wealthier?

20. Spend as much money as you can building for your future.

Use your money to build for your own future, not the future of others.

Your future self will thank you for everything you’ve done for it.

21. Get rich quick schemes don’t exist.

Manage your emotions when learning about financial opportunities.

You build wealth through providing value, combined with financial discipline and education.

22. Money is not the root of all evil.

This is one of the greatest money myths.

Spread far and wide to make you resent money.

Money is actually the solution to more of your problems than you think.

23. Create an emergency fund.

You can’t predict unforeseen events. That’s life.

But, you can prepare for them with a financial safety net.

Save a few months worth of expenses for a rainy day.

It’ll help you get a much better nights sleep.

24. If you want more money, provide more value.

There’s a strong correlation between money earned and value provided.

Want more money? Become a more valuable person.

25. Have a long term mindset.

The person with the longest time horizon will always end up at the top before everybody else.

Your actions today will impact where you are in 10 years.

Don’t think in days. Think in decades.

26. Consume valuable content.

Make sure you’re consuming value, like educational books and podcasts.

Not junk which steals your energy and ruins your attention span.

27. Patience will make you wealthy.

Those with the longest time horizons will outlast those who give up on their journey to financial success.

You need time to become wealthy.

Understand compound interest, and how it can help you retire decades before your peers.

28. There’s little downside to starting a side hustle.

If you keep costs low, the potential returns could be gigantic if you’re committed.

As long as you’re either learning, or making money, you’re gaining from this venture.

29. Entrepreneurship is more fulfilling than employment.

Earning as an entrepreneur is much harder than employment.

But, that’s why it’s so rewarding.

Give it a try if you like the idea of working for yourself and starting your own business.

30. You don’t need to be wealthy to invest.

The rich didn’t start investing once they became rich.

They got rich because they started investing.

31. Cash is not king.

Cash is trash. Cash flow, on the other hand, is king.

But, money staying in one place will always lose value.

Either spend it on the things that make you happy, or put it to work to build for a better future.

32. Prioritise your time over your money.

There’s always more money to be made.

But time, though, is gone forever once it’s passed.

33. Create a budget for your finances.

A budget may sound like a super boring, mundane task.

But, it’s imperative for building wealth and keeping on track.

Implement a budget for discipline, not for fun.

34. Those in charge don’t want you to be rich and successful.

If they did, the education system would be a whole lot different.

They want to take as much from you as possible, without you realising it.

35. Knowledge is crucial to building wealth.

Formal education will make you a living.

But, it’s self education that will make you a fortune.

36. You can only save so much of your income.

Your level of saving is limited to your level of income.

So, the best way to increase the amount you save?

Increase the amount you earn.

37. Building wealth is geared towards ownership & assets.

The more you own, the wealthier you become, and the happier you become.

Ownership means security. Security means peace of mind.

Peace of mind means happiness.

38. Don’t spend your money to impress people you don’t like.

We work jobs we hate, to buy things we don’t want, to impress people we don’t like.

Spend your money on what will put you in a better position in the future.

39. Time and money are your two most valuable assets.

Time and money are the most versatile assets you can have.

They’re the two things in life with the highest ROIs.

Use them wisely & don’t waste them.

40. People will have a big impact on your future.

You are the the sum of the 5 people you spend the most time with.

Hang around 5 losers. You’ll be the sixth.

Choose wisely who you spend your time with, as there will be serious implications.

41. Choose an industry with wealthy customers.

It’s a simple life hack.

Help rich people solve their problems.

They pay better.

42. Health comes above wealth.

Physical health is more important than financial health.

There’s no point being rich and free if you’re unhealthy, feel depressed or have poor social skills.

43. School doesn’t prepare you for a life of freedom.

School prepares you for a life of work.

It’ll teach you how to pass a test, but it won’t teach you how to be happy.

Unlearn what you’ve been taught and learn practical, high value skills that will benefit you.

44. Luck only exists for the unproductive.

Being called lucky is one of the best compliments you can get.

You make your own luck through consistency, determination and hard work.

Lazy people will never get this.

45. Material goods won’t fix your problems.

There’s no use for a Lamborghini if you’re unhealthy, stressed out and too busy to enjoy it.

Happiness and peace of mind comes above everything.

The sooner you figure this out, the better.

46. Create, don’t consume.

Social media should be used for you to build your own brand.

Not to watch other people build theirs.

47. Money will help you build your dream life.

Money can buy you anything.

The only thing stopping you, is your lack of financial education.

This is why people spend so poorly.

48. The Financial Revolution is on a mission to end financial illiteracy.

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