10 Money Rules That You Should Know

Building a rich life isn't just about having lots of money in the bank. It's about creating simple guidelines that help you make smart financial decisions every single day.

Think about it - you probably make around 100 money choices each day. Should you buy the expensive chicken or the cheaper one? Should you pay off debt faster? Should you rent or buy a house? These decisions can feel overwhelming sometimes.

That's why having personal money rules is so important. When you have clear guidelines, making big financial choices becomes much easier. You don't have to stress about every single purchase anymore.

Today I want to share 10 money rules that can help you build wealth and live the life you actually want. These aren't just random tips - they're proven strategies that work when you stick to them.

Rule #1: Keep One Year of Emergency Fund Cash

Most personal finance experts tell you to save 3-6 months of expenses for emergencies. But here's a different approach - having one full year of emergency money gives you much more peace of mind.

This rule might sound extreme to some people. And yes, it is more conservative than what most people do. But think about what happened during COVID when millions of people lost their jobs suddenly. The people who had bigger emergency funds didn't panic as much.

When I say "cash," I don't mean money hiding under your mattress. Keep it in a regular bank account where you can access it quickly if needed. Don't worry too much about earning interest on this money - the goal is safety, not growth.

If one year seems impossible right now, that's totally okay. Start with one month, then work up to three months, then six months. The important thing is to start somewhere and keep building.

Rule #2: Save 10% and Invest 20% of Gross Income (Minimum)

This is where real wealth building happens. Many people save and invest around 5-10% of their income, which is a good start. But if you want to build serious wealth, you need to be more aggressive with these numbers.

Here's why this rule works so well: true wealth comes from investing your money, not just saving it. The earlier you start investing, the more time your money has to grow through compound interest.

I've been investing since I was 14 years old. Every time my income increased, I invested more money. This habit of increasing my investment rate has made a huge difference over the years.

Now, I know 30% total (10% saving + 20% investing) is a lot of money. You probably need a pretty good income to do this comfortably. If you can't do these exact numbers right now, adjust them to fit your situation.

Here's a simple trick that works really well: every year, increase your savings rate by 1% and your investment rate by 1%. This small change will be worth hundreds of thousands of dollars over time.

Rule #3: Be Able to Pay in Full for Large Expenses

This rule always makes people upset when I talk about it online. People say "Who can afford to pay cash for a house?!" But let me explain what this really means.

Years ago, I had a mentor who told me about his "no debt policy" for his household. At first, I thought that must be nice for rich people. But over time, I realized this approach actually takes a lot of discipline and planning.

The point isn't necessarily to pay cash for everything. The point is to save enough money so that cost isn't the main factor when making big decisions.

For example, I started saving for my wedding before I even met my wife. I knew marriage was important to me, and I wanted to have a beautiful celebration without worrying about money. Same thing for our honeymoon, engagement ring, and eventually a house.

When you save ahead of time for big expenses, you can make decisions based on what you actually want, not just what you can afford. That's true financial freedom.

Most people can't buy a house with cash, and that's perfectly normal. But the principle of saving ahead for major purchases will never go out of style.

Rule #4: Never Question Spending on Books, Appetizers, or Charity

This rule might sound strange, but it's one of my favorites because it's about giving yourself permission to spend money on things that matter to you.

I have a simple book buying rule: if I see a book that interests me even a little bit, I just buy it. No thinking, no debating, no waiting. If one good idea comes from that book, it was worth the money.

Let me give you a recent example...If you know Alex Hormozi, who is launching his third book '$100M Money Models' on August 16, 2025. For that, he is hosting a live book launch event. So I registered for the event and pre-ordered the book as well made a VIP upgrade. You shall too.

The appetizer thing is personally meaningful to me. When I was growing up, my family rarely ate at restaurants. When we did, we never ordered appetizers. Now being able to sit down and order whatever looks good feels magical to me.

When I eat out with friends, I tell them "Order anything that looks good - don't worry about the price." That's what a rich life feels like to me.

For charity donations, I also don't put limits. My wife and I ran a charity fundraiser once, and it meant so much when our friends donated generously. So now we do the same for causes we care about.

What's your thing? Maybe it's gardening supplies, or art materials, or fitness classes. Pick one area where you give yourself unlimited spending permission. You probably won't go crazy with it, and it will make your life feel much richer.

Tip: Read a book summary of the book Boss Moves by Myron Golden. This book is very relevant to the topic I am talking here.

Rule #5: Fly Business Class on Flights Over 4 Hours

This rule is simple: I want to, and I can afford it. That's what abundant money rules look like.

I didn't grow up flying business class. Actually, I barely flew at all as a kid. When I started flying in my twenties, I used to judge people who paid more to sit in the front. "We're all going to the same place," I thought. "They're wasting money."

But eventually I got curious instead of judgmental. I wondered why someone would pay four times more for a seat. What were they getting that I couldn't see?

Over time, I realized it's not just about the bigger seat. It's about comfort, guaranteed overhead space, better service, and less stress. If you can easily afford it and you're hitting all your savings and investment goals, why not?

I also love having a simple, clear rule so I don't have to debate with myself every time. Flight over four hours? Business class. Done.

Your version might be different. Maybe you don't care about flying, but you want a clear rule about something else that's important to you.

Rule #6: Buy the Best and Keep It for as Long as Possible

Everyone loves this rule in theory. But then they open their closet and it's full of cheap clothes that look terrible after a few months.

When I say "buy the best," I'm talking about things that are important to me and things I use every day. For example, I have a nice wooden coffee scoop from Japan that I love. I'll probably use it for the rest of my life.

My car is a Honda Accord that I bought when I graduated college. I've been driving it for 19 years now. Yes, a Honda Accord is the best car - at least the LX V6 model for anyone who cares about cars.

For clothes, I buy high-quality pieces that last for years instead of cheap stuff that falls apart quickly. Some of my sweaters actually cost more than my car, but they'll last decades.

You can't afford the best of everything, and that's normal. But pick two or three areas that are important to you. Buy quality items in those areas and take care of them. You'll save money in the long run and enjoy them much more.

Rule #7: No Limit for Personal Development

Since I work in the personal development field, this rule makes perfect sense for me. I want to keep learning and improving myself, so I don't put spending limits on courses, coaches, or training.

Personal trainers have completely changed my life. Same with posture coaches and other specialists. These investments in myself have been worth way more than they cost.

The "no limit" part might scare you, and that's okay. You can adapt this rule to fit your budget. Maybe it's $100 per month on fitness classes, or $1,000 per year on continuing education.

The key is recognizing that investing in yourself usually gives the best returns. Whether it's learning new skills, improving your health, or developing better habits - these investments compound over time just like money does.

Rule #8: Earn Enough to Work Only with People I Respect and Like

Have you ever looked at your calendar, seen a meeting with someone, and immediately felt stressed? You know that feeling - you don't want to talk to that person because you don't like or respect them.

Life is too short to work with people who make you miserable. I decided long ago that in my company, I only want to work with people I actually like and respect.

This rule isn't just about business. It applies to friends too. If spending time with someone consistently makes you feel worse, that's a sign you need to make some changes.

Making this rule work requires earning enough money so you're not trapped in bad situations just for the paycheck. It takes planning and discipline, but the freedom it gives you is incredible.

Rule #9: Prioritize Time Outside the Spreadsheet

I used to be obsessed with optimizing every little detail of my finances. I would spend hours running calculations and projections, trying to figure out if a 2.6% withdrawal rate was better than 2.8%.

But at some point, you need to stop optimizing and start living. Once you have your money systems set up properly, you've already won. Don't spend all your time managing money - spend time enjoying the rich life you're building.

For me, that means staying fit, traveling, and spending time with friends and family. A rich life happens outside the spreadsheet, not inside it.

This rule is especially important for people like me who love to optimize everything. Sometimes you need to force yourself to step away from the computer and actually live your life.

Rule #10: Marry the Right Person

This might seem obvious, but it's so important that it's my final and most crucial money rule.

The person you marry is one of the biggest financial decisions you'll ever make. They'll affect your income, where you live, what you eat, your family structure - everything.

And it's not just the big things. Your spouse will affect how you think and feel about money for the rest of your life. That's why it's so important to find someone who shares your values around money.

They don't need to come from the same financial background or earn the same amount. What matters is whether they think about money similarly and whether they're willing to have open conversations about finances.

When I married my wife, I wanted us to develop our money rules and systems together. It would have been easy for me to just handle all the money decisions, but I wanted us to be partners in building our rich life.

Making These Money Rules Work for You

Notice that most of these money rules are about saying "yes" to things that matter, not just saying "no" to everything. That's what makes them sustainable and enjoyable.

Here's my suggestion: take these money rules and adapt them for your own life, values, and priorities. The more specific your rules become, the more they'll fit your unique situation.

Don't worry if your rules seem weird or ridiculous to other people. Good money rules should fit you like a handmade glove. What matters is that they're meaningful and helpful for your specific goals.

Remember, these are just my personal money rules. You can use some of them, modify others, or create completely different ones. The important thing is having clear guidelines that help you make confident financial decisions every day.

Start with one or two rules that feel right for you. As you get comfortable with those, you can add more. Building a rich life takes time, but having clear money rules will make the journey much easier and more enjoyable.