Money Rules for A Rich Life
Rules feel restrictive until you realize they provide the most freedom
This post is 1,499 words and a 7-minute read.
Did you know we have over 70,000 thoughts a day? This is according to a study by the Cleveland Clinic.
Is this actually true? No one can really prove it either yes or no. Regardless we think about a lot of things throughout the day. A lot of these thoughts are about decisions we have to make during a day. Every thing from deciding what pair of pants to wear to work to deciding if you should move to a new city.
It can get overwhelming having to think through every single situation. So much so that there is a psychological theory called Decision Fatigue. According to the American Medical Association:
Decision Fatigue is the idea that after making many decisions, your ability to make more and more decisions over the course of a day becomes worse. The more decisions you have to make, the more fatigue you develop and the more difficult it can become.
In our fast moving society, where we are faced with way more decisions than ever before. The question becomes how do we protect our minds and our ability to make good decisions. So when we have to make a heavy decision, we can do so from a position of strength and not weariness.
One of the ways that has helped me, as someone is a chronic over thinker, is to have rules. Simple rules that helps free up my mind to think about other things and not be bogged down by small decisions.
It's like driving on any road way. Where you have clear rules being observed, traffic moves very freely and smoothly. However, where you have no rules things quickly devolve (ask anyone who has ever been in a car in Lagos).
One area that it has really helped me is in my finances. By having rules about my money and how I use my money. It helps me stop out of the stressing about money (not completely if I'm being honest). And moving into the using the money to make my life a bit better.
I believe we would all have a much easier time with our finances if we had some simple rules or guidelines in place. It'll help making decisions much easier and lead to less stress and much more financial fulfillment. The secret is making your rules fit you and your lifestyle.
Today, I'll be sharing all those rules with you. This can be a good starting point for you to determine what rules you want for yourself and your family.
Give
This so important to me I create an entire slogan for it and you see it on every single post: GENEROSITY > greed.
This rule means I will give away at least 10-15% of my income every year.
It also means that when I have the ability to, I will help people who need it.
This is how I feel fulfilled in my life.
Not all advice is Good and not all Good Advice is Good for me.
Your parents, friends, family members, teachers, co-workers, classmates, doorman, random gym person, influencer, actor, Google, Facebook etc. are all trying to get you to do something.
Some of those things are great but it doesn't mean it is meant for you.
Which leads to one of my favorite quotes by Sun Tzu:
"If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle."
I must continue to learn, grow, and know more about myself than other people do. So I know what advice to act on and what advice to ignore.
Live on Less Than I Make.
Lifestyle Creep sneaks up on all of us, I must be attentive to what I choose to be a regular part of my life.
Always review to make sure I have not added unnecessary expenses to live a life that I care nothing for.
There is a level of lifestyle that is good, but I have to be mindful and aware of what is being added to my life.
Save and Invest at least 25-30% of Income.
This is a commitment to Future Kelechi that he and his family will be taken care of.
This must be automated through direct deposits or automatic withdraws.
Always have 3 months of income as an Emergency Fund in CASH while Single. When married this must be at least 6 months of Income.
The best time to put out a fire is before it starts.
The best defense we can have against the unpredictability of life is an emergency fund.
As the Bible says, "Money solves a multitude of problems." Ecclesiastes 10:19
No consumer debt aka Credit Cards, Car Loans, Wedding Loans, etc.
For any large purchase, I must have the cash for it before I make the purchase.
Cars, Engagement Rings, Dream Vacations, Weddings
There is beauty in Delayed Gratification. Spend what I have only when I have it.
I will use loans to maximize my money, but I should always have the ability to pay it all off whenever I want to
For homes, have the ability to pay 20% down on a home even if I do not necessary do it.
Debt is a burden and I do not like burdens. It is a charge against my future self's wealth.
Invest in Myself
This is probably the hardest one for me to abide by because unlike the others, sometimes the results here are not always tangible.
Investing in myself means growing Mentally, Spiritually, Emotionally, Physically, and Financially
Praying, Meditating, Exercising, Eating Well
Falling in Love, Building Relationships
It does not always come with a monetary cost, but it might be a time cost from listening to podcasts or YouTube videos or reading articles or books. Or spending time with someone
Sometimes your efforts result in nothing but the pursuit in itself is the reward. Which is a hard to accept in a world driven by metrics and results only.
Sometimes this means, don't cheap out but spend the money on a quality product that will last A LONG TIME i.e. shoes, beds, pillows, electronics etc.
SO HARD FOR ME
Run towards the Fear and Challenge
Face difficult challenges head on as you are afraid scared and shaking.
As my brother once told me, "On the other side of fear is everything you have every hoped for."
Have the hard conversations.
The longer we avoid the hard things, the worse it becomes.
If there is a problem, deal with it as it appears. Do not wait until it rots and becomes worse to give it the attention that is needed.
Numbers Never Lie but they NEVER tell the whole truth.
There are things that will not make the most financial sense i.e. me buying a house. However, it makes sense for the life that I want to live.
It is important to always run the numbers to understand what I am getting into but then make the best decision for your life.
Remember, I am creating the life I want to live. Which means doing things that I love, for those I love, with those I love.
Marry the Right Person For ME
As much as we might like to ignore it, money is a large part of marriage and relationships.
I must be in alignment with my wife on our lifestyle and our finances.
We come from different backgrounds with different beliefs. We must both be willing to put in the work to create our own beliefs as a family.
We are a TEAM.
I am trying to be like a NCAA Basketball Freshman, Marry Once and DONE
Decide my level of ENOUGH aka CONTENTMENT.
Stop moving the Goal Post
What would the truest form of happiness be for my life and what is required to have it?
This might mean short term finding ways to increase income for long term satisfaction
More money is not always the answer long term because it comes with a cost that I am not willing to pay.
I want to live life in the way Solomon talked about in Ecclesiastes 5:18-19:
This is what I have observed to be good: that it is appropriate for a person to eat, to drink and to find satisfaction in their toilsome labor under the sun during the few days of life God has given them—for this is their lot. Moreover, when God gives someone wealth and possessions, and the ability to enjoy them, to accept their lot and be happy in their toil—this is a gift of God. They seldom reflect on the days of their life, because God keeps them occupied with gladness of heart.
Have FUN but Don't Eff It Up
Do whatever you want but count the costs.
This rule allows me to invalidate every other rule above because in the end Life must be ENJOYED!!
If you were to create some rules for your money, what would be one of the rules?
Reply to this email with one rule you would create for yourself.
Remember it should be specific to you.
Thanks for reading
Remember Generosity>greed
God Bless You
✌🏾
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