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!