Today I want to show you what’s helped me fight some of the money behaviors and beliefs ingrained in me since childhood: Money Rules.
Rules act as clear cut decision making tools. They remove the emotion. And help you keep moving in the direction you want to go.
These 7 Rules of Money have helped me save more, earn more and put my money to work smartly.
“But Rob – who are you to tell me what to do with my money?”
You’re right. I’m not a billionaire. I’m not even a multi-millionaire! I’ve never listed a company on a public stock exchange. So in many respects, I’m not the world’s leading authority on money.
But I am someone who studied money, finances and psychology closely for a decade. Someone who had to learn these things one by one, on my own, because I came from basically nothing (a small town in Tennessee) to where I am today.
So it’s my hope that they’ll help you too.
Rob’s 7 Rules of Money
1. Always know what your next double is.
Money is a game of doubles. And the faster you learn how to double your money, the better off you’ll be. And no — I’m not talking about looking for “penny stocks” or betting it all on red in Vegas. This applies to your careers and businesses, too. For example, when I started as a copywriter, I found out I was making 1/5th(!!!) what everyone else in the company was making. At first, I was devastated. But I looked at how my skills stacked up to other writers, and came to the conclusion, that my pay was fair. So I asked my mentor, “What do I have to do to double my income this year?” He gave me a plan. I followed it to a “T.” Within 5 months, I did exactly that. And I’ve repeated this process every year since. Note: Doubles can be small (you can double your fee on one type of service you offer), medium (you can raise your rates across the board) or they can be gigantic (you can double your income in a year). And it adds up quickly.
Someone who’s making $35,000 per year right now is only 2 doubles from a 6-figure income. And 5 doubles away from a $1 million/year income. Have a look:
$35,000
$70,000
$140,000
$280,000
$560,000
$1,120,000
Is that easier said than done? Of course! But I’ve found asking the question and taking action puts you a lot closer to those numbers than just hoping things will work out. And in my view, growing your income is one of the most powerful parts of any financial plan. One double, on the right income source, can be worth 10 times what you’ll save through a year of penny-pinching.
So my question to you is, “What’s your next double?”
2. Save enough cash to cover 2 years of expenses.
Some “financial coaches” will tell you to have an emergency fund of $500. But *please* Tell me what emergency can be fixed with $500? For example, when I was in college, I hit a flying deer (yes, it was hurling through the air at me) with my car. After insurance paid their part, I was still out of pocket nearly $2k. Sure, $500 would have helped, but the way my brain is wired I don’t feel safe with a couple hundred dollars tucked away. I want a war-chest that allows me to survive for years even if all my income stops. Is it *too* aggressive? Maybe. But I believe you’ll be a lot better off adhering to my rule than the former.
3. Set your lifestyle at 75% of your income. And save the other 25% — automatically.
The way society pushes most people to live is beyond their means. “Put it on credit” or “You can get a 0% APR, same-as-cash financing.” But I’ve found that’s a recipe for disaster. There’s nothing that makes building wealth harder than inflating your lifestyle beyond your means. Because once you adjust to a new level, going back is hard. That’s why you’ll never see me posed in front of a Lambo or flaunting. I try to live on less than 75% of what I make. Ideally even less. And put the rest in savings. And when it comes to savings, I’ve found the best plan is the one you never think about doing. I automatically draft money out of my checking account every month into a savings account that I never touch. I learned this from my mentor and former boss, Ramit Sethi, who uses automation as a core part of his financial plan. Set this up once and thank me later.
4. Focus on one flow until it pours.
A lot of so-called “business gurus” will tell you “BRO – YoU NeEd MuLTiPlE InCoMe sTrEaMs” and then proceed to sell you a course on dropshipping, real estate, Facebook ads, starting a YouTube channel, becoming an influencer, and on and on. I call this the “Bumblebee Business Strategy” and it involves bouncing around from thing to thing, collecting little results, and no momentum along the way. In my experience, the best financial rewards come from deep focus on one skill, one career or one business. You can have a side business — I’m huge fan of that actually — but make sure the skills all overlap. For example, when I worked in a company as a copy chief, I wrote copy on the side. Just make sure the skills feed each other. The reason for this is because the difference in rewards for mastery and basic level skill isn’t 10x. It’s more like 10,000x.
5. You can only pick one area to invest aggressively in — your career, your business, or your investments — the other two must be safe.
The key to getting outsized rewards is to take big bets. But you can’t bet big in every area of your life or you’re destined to get destroyed. For example, taking a commission only sales job or royalty-only copywriting gigs could be a great choice to bet big on your career. But if you take your commission checks and invest them into crypto IPOs and FOREX and your best friends start up…Good luck! Pick one area to bet big — not all three.
6. Choose your money partners wisely.
The number one cause of fights in marriages and relationships is … MONEY. The last thing you want is to find out your partner and you have totally different views/beliefs on money 2 years into marriage and/or owning a house together. Try to have these conversations early on with people you’ll share finances with. This goes for business partners too. You have to vet any people you entangle your finances with very carefully.
7. Treat money as if it’s an abundant resource.
Some people believe that money is a zero sum game. “If I spend my money, I lose it and someone else gains it” some people say. But I’ve learned money is not a zero sum game. It’s abundant and waiting to find people who believe you can always earn more. Because you can.
It’s amazing what happens when you shift some of your beliefs around money. You can do things that some people think are impossible.
Like make $9,000 in 30 days as a brand new copywriter.
Yes! That’s a real example.
>>>Click here to see how I made $9,000 in 30 days as a brand new freelance copywriter (part time).
AND! Click here to see an updated version of this “experiment” I just recently tested out!