The Rules

Rule No. 1: Pay yourself first.

Treat your savings like a bill — the first and most important bill you have to pay. Any time you get some money, your savings comes first. Not what’s left over. First.

Rule No. 2: If you want to have more money, spend less.

Not earn more. Not get a raise. Spend less. This is the one thing that is always within your control. It can be challenging — but it can also be liberating. It spurs your imagination and draws on your creativity.

Rule No. 3: Teeny tiny baby steps.

You don’t need a thousand dollars to start saving. You can start with any amount. A dollar. Five dollars. Little bit at a time — drop by drop — it adds up. Set small goals, reach them, then set bigger ones.

Rule No. 4: Never pay interest. Always earn interest. Paying principal puts money in your own pocket.

When you pay interest, you are giving your hard-earned money away. Credit cards, car loans, payday loans, rent-to-own — learn to recognize all the ways interest hides. And remember: fees, penalties, check-cashing charges — that’s all interest too.

Rule No. 5: Practice, practice, practice.

You’re always either getting better or getting worse. You never stay the same. Find ways to improve your skills, your knowledge, your value. An investment in yourself is the best investment you can make. 

Rule No. 6: Make it automatic.

Direct deposit. Online bill pay. Automatic savings contributions. Set up systems that do the right thing without you having to think about it every time. Make good decision making part of your routine. Set it and forget it.

Rule No. 7: Investing and insurance = legalized gambling. And remember: The house always wins.

Investing and insurance are both forms of managing risk. You’re putting money on the line today to protect yourself or grow your wealth tomorrow. Learn the basics. Start simple. And always ask the hard question: how does the person selling this to you get paid?

Rule No. 8: Things never stay “the same.”

Things are always changing -- getting a little better or a little worse. And some day we are all going to die. Don't leave your legacy up to chance and government regulations. Plan ahead for those you may leave behind some day. Think about every aspect of your legacy.

Rule No. 9: The most important things in life are free.

It sounds like a cliche, but it's the truth. Fresh air. The ability to stand up and walk outside. The people you love and who love you back. None of this costs a dime, and none of it can be replaced by money. 

Rule No. 10: It’s all up to you. But you don’t have to do it alone.

Nobody else is going to do this for you. The responsibility is yours. But that also means the power is yours. But -- and this is important -- you really do not have to deal with it all by yourself. Talk to the people closest to you. Your spouse, your partner, your family, a trusted friend. Money touches every relationship in your life. Bring the people who matter into the conversation. 

That's It

These are the principles behind Financial Wisdom. They come from timeless ideas about money and from the practices of certified financial professionals. They’ve been tested in classrooms and they resonate with everyone from corrections students to CPAs.

Want to see how they work in practice? Start with the story.

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