The Rules

The story focuses on the following set of fundamental principles for personal financial planning.

Rule Number 1

Pay Yourself First

If you feel like you work hard for your money, don’t you deserve to keep some of it? No matter how little money you earn or receive, you can save something. Having savings is essential to give you control over your finances.

Rule Number 2

If You Want to Have More Money, Spend Less

What you want is frequently not what you need. Needs vs. wants.

Rule Number 3

Teeny, Tiny Baby Steps

Start taking teeny, tiny baby steps. A small plan, a modest goal. Keep it simple, stupid.

Rule Number 4

Never, Ever, Ever *PAY* Interest. Always EARN Interest

Just what it says – never *pay* interest. Always *earn* interest. Never incur interest payments. With one or possibly two exceptions.

Rule Number 5

Practice! Practice! Practice! Get a Little Bit Better Every Day. In your personal finances and in the rest of your life. Learn skills, develop good form.

Rule Number 6

Make it AUTOMATIC

Automate your finances. Sign up for direct deposit when possible, use your 401(k) plan and online banking.

Rule Number 7

Investing and Insurance = Legal Gambling

Risk and reward -- it's just like a gambler figuring out the odds. Remember: The house always wins and if it seems too good to be true, it is.

Rule Number 8

Things Never Stay ‘The Same’

If you’re not growing, you’re dying. Planning for life and death.

Rule Number 9

The Most Important Things in Life are Free

It’s a cliché, no longer fit for a pop song lyric or even for use on a greeting card. But – damn it – it’s true.

Rule No. 10 – The Last Rule

It’s All Up to You

There are no easy answers. Attitude is everything. It is more important to give than to receive. Your job is to care for those less fortunate than you.