What are YOUR MONEY RULES? You know, those rules you have about money, spending it, investing it, saving it, giving it away? The rules you use to decide how you will distribute your money and to whom.
Everyone has money rules. They may not be written down but you have them. Maybe one rule you have is to “never lend money to a friend.” Or another rule you may have is to save 10% of what you earn, or tithe 10% of what you earn. If you are in business for yourself you might have a money rule that includes paying yourself first (or last). Never owing money or paying off your debt each month. These are the rules that help you plan your financial future and achieve your goals for living including retirement…
Whatever your money rules they are what you use to guide you, to help you manage your money better, or not. If you don’t have money rules or only have a very loose interpretation of money rules, perhaps its time to write them down. Its amazing how once you put something on paper, document it, it becomes more real. And more important.
During the 2+ day BIG TABLE event I have been referring to in my last few posts, one of the exercises the workshop leaders asked us to do was to write down our money rules.
Here are mine (in no particular order – except the first one):
Trust GOD, everyone else pays cash!
When investing ANY money in ANY opportunity, ask for references, then VERIFY
Know my accepted rate of return on any investment (eg. 9%)
Do’t do it if I don’t understand it.
Only risk 10% of my assets
Do Due Diligence
Verify Data (and learn the worst-case scenarios)
Respect Other Peoples Money Rules
Don’t do DEALS with Relatives
Don’t change my money rules in the middle of a deal
Ask lots of Questions
Understand the legal ramifications
Minimize my risk
Do a GUT CHECK
Do a secure note instead of an equity call
Don’t do anything without the right team in place
Have others on my team look at a deal before making a commitment
Document the details of every deal
Don’t do deals with someone unless they have a verified significant track record of success
Don’t ignore my money rules
Having money rules you can live with and stick to will go a long way to helping you achieve your long-term goals and plan your financial freedom day!
What are some of the RULES you live by when it comes to money and investing?