July 19, 2024

69 Money Lessons For Building Wealth

Need to learn some money lessons to build wealth? Here are a useful set of rules for how to make and save more money.

  1. Do not trust your gut
  2. Always save 10% of every paycheck
  3. Never buy anything without using the 20% rule
  4. Pay yourself first and invest into something that will increase in value over time
  5. If you cannot pay off your credit card every month then do not even think about getting one
  6. Spend less than you earn
  7. Make sure to always shop around before buying anything expensive such as a house or a car
  8. Invest in your employee stock purchase plan
  9. Save in bonds not bank savings accounts
  10. Save 25% of your salary after the 10% is used up and start investing it within five years
  11. Never take out short-term loans
  12. Max your 401k every year
  13. Time in the market is more important than timing the market
  14. Invest in a Roth IRA
  15. Rather than picking stocks, use a low cost index fund that mirrors the overall market
  16. Make sure to pay attention to how expensive something is in relation to its yield
  17. Be aware of what inflation will mean for your future net worth
  18. Never use your credit card to pay for anything that you cannot afford
  19. Pay off your credit card every month – remember, you don’t have to pay interest unless you carry a balance
  20. Most wealthy people own real estate
  21. A good CPA can save you much more than they cost
  22. Know the difference between good debt and bad debt
  23. Read a book every month or two to improve yourself
  24. Only borrow money to buy an appreciating asset
  25. Never use a payday loan center
  26. Pay off your home early if possible
  27. You need insurance to cover potential catastrophes
  28. Don’t loan your friends money
  29. Risk and reward are highly correlated
  30. Try side hustle
  31. You can often make more working for yourself rather than someone else
  32. Seek experts when you need help
  33. There is no substitute for compound interest which is why saving early and often is so important
  34. The most important compounding is at the end.
  35. The longer you let your investments compound, the more amazing it will be.
  36. Get rich quick doesn’t really exist.
  37. When speculating, stay small
  38. Don’t make decisions based on fear
  39. Don’ make decisions based on greed
  40. Invest in what you know
  41. Seek to understand your emotions as they relate to money and how they affect your decisions
  42. Fortune favors the bold
  43. The best time to start was 20 years ago, the 2nd best time is now
  44. Use tax advantaged accounts
  45. Use taxable accounts when you are out of tax advantaged accounts
  46. Starting a business brings many tax advantages
  47. Know the difference between assets and liabilities
  48. Track your net worth on a regular basis
  49. Know your why for building wealth
  50. Write down your goals
  51. The stock market is a random walk of prices over time you cannot predict it.
  52. Diversify
  53. Get rid of your debt.
  54. Leverage can build and destroy wealth quickly.
  55. Learn how to value a company
  56. The best entrepreneurs think like investors and invest only in opportunities that make sense to them
  57. Keep some powder dry for good opportunities
  58. Show gratitude
  59. Work hard
  60. Spend money on experiences, not things
  61. Enjoy the journey
  62. Find a hobby that makes you money
  63. Roll your old 401ks into a rollover IRA
  64. Marry wisely
  65. Kids are expensive
  66. Pets are expensive
  67. Spouses/Kids/Pets can be more valuable than money
  68. Exercise – medical bills are expensive
  69. Don’t hesitate, dominate!

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