My 7 Non-Negotiable Rules for Financial Success

To succeed financially, you have to set rules for yourself to stay on track.

It can be tough, and you risk losing sight of your goal if things get tricky, which they’re likely to get.

So, to help you stay the course, here are my 7 non-negotiable rules for financial success in 2024.

Build A 3-Month Emergency Fund ASAP

When you’re trying to improve your financial situation, you’ll be experiencing some form of financial risk for the first time:

• Investing.

• Starting a business.

A great thing to have would be an emergency fund.

A savings pot that you can access in a hurry, in case of any unexpected expenses, or loss of income:

• Redundancy.

• Water leak.

• Broken down car.

It also help you sleep better at night, knowing you’ve got a nice chunk of cash to fall back on, in case you need it.

This peace of mind was the biggest benefit I saw when building an emergency fund.

A lot of finance planners will suggest you save between 3–6 months of your monthly expenses, in an emergency fund.

Personally, I think 3 is good, so that’s my first non-negotiable rule for you.

Invest 10% of Your Income

One of the worst things is finding yourself living paycheck to paycheck, with nothing left at the end of the month to build for your future.

That’s why I recommend to people that as soon as you get paid, take 10% (or more, if you can) and put it away into either a high-yield savings account, or invest it.

This way, you’re forced to be slightly more frugal during the month, but crucially, you can build for your future.

It’s important to do it before any expenses come out, so you can avoid the possibility of not being able to invest at the end of the month.

This way, you’re almost forcing yourself to build wealth, which may sound aggressive, but it’s a good thing.

Use The 100-Day Rule

The 100-day rule is a rule I use to work out whether I should buy certain things.

This only affects non-essential items, so rent/mortgage payments etc. don’t fall into this argument.

But, every time I want to buy something new, I simply ask myself…

Will this still have the same value to me on day 100 as it will on day 1?

Which simply means…

Is this purchase going to be worth it in the long run, or am I acting on impulse?

I’ve saved thousands of dollars by asking this question every time I spend.

The main things I’ve cut down on:

• Video game purchases (especially in-game add-ons)

• Football merchandise (the epitome of impulse spending)

• Takeaways (it’s not worth the convenience)

All whilst having zero effect on my standard of living.

So, I recommend you start asking this question too, if you want to improve your spending habits.

Prioritise Removing Debt

Debt is the killer of dreams.

I cannot hate it enough, because people don’t realise how inversely correlated debt is with financial success and overall happiness.

Society is designed to get you in debt as soon as possible.

Why? To make sure you work… long and hard.

• Student loans.

• Mortgage.

• Car loans.

• Credit cards.

• Personal loans.

It’s especially bad in the US, where you can find yourself hundreds of thousands of dollars in debt in your 20's.

The result? You’re stuck, potentially forever.

And the situation only gets worse as the interest compounds.

Lenders love debt because it’s passive income to them.

Don’t give them the satisfaction.

I look at debt like a really bad friend. Only see them if you really need to, and make sure it’s for as short a time as possible.

Automate Your Finances

Habits can be hard to keep, and it can often be due to forgetfulness, rather than discipline.

So, why not eliminate the possibility of forgetting something, by automating it?

The more you can automate within your finances, the easier the path to financial success will be, and the greater your results will be.

You can automate just about anything:

• Deposits into an investment account.

• Debt repayments.

• Building an emergency fund.

Take some time to automate what you can, to make things easier.

From the perspective of time, it might be one of the most profitable things you ever do.

Build Multiple Income Streams

In the world of personal finance, the truth is that there’s only so much you can do with regards to:

• Spending

• Saving

• Investing

But, there’s one factor which is almost unlimited, and that is your income potential.

You’ll need to invest your time, but increasing your income will help improve your financial situation, as long as you’re putting the money to good use.

• Dividends

• Side hustles

• Starting a business

These are some great places to start.

Only Spend Money You Have

The best way to avoid debt is to set a simple rule for yourself:

Only spend money you have.

Of course, the odds of you being able to buy a house with straight cash is… slim, so this can be exempt.

But, with other things that aren’t as expensive, it’s an invaluable rule to have.

You can avoid taking on debt, and crushing your ability to build wealth for the long term.

I always like looking into the future to see whether something I do in the present will benefit me down the line.

It’s something I recommend for everyone to do, especially in the spending element of personal finance.

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