The Eight Rules of Wealth

The 3-Month Guide to Change. The Book

The Eight Rules of Wealth. The 3-Month Guide to Change Book

In order to attract, save, and multiply your money, you’ll need to first build a proper relationship with money as a whole by following certain rules.

Unfortunately, most people tend to find themselves in a circle of money troubles by the very nature of how the process by which money is acquired and then spent. This is even corroborated by official statistics that point out the enormous percentages of people across developed countries who consistently live from paycheck to paycheck.

Meanwhile, those who do manage to escape this cycle tend to abide by a set of rules that allow them to manage the money they have in a balanced manner. You, too, can learn and adopt these rules.



Rule #1: Avoid debt.


Life is full of temptations. Each of us has many desires that eat at us regularly. Hell, our entire economy is based around that, and that includes credit cards and their issuers. Unfortunately, using credit puts us further into debt and away from our much desired financial freedom. At a certain point, you realize that the fees associated with your credit take up so much of your funds that what was once an advantage becomes a burden.

Here’s my approach. Every time you consider going further into debt, rethink that decision seven times. The right answer will then become evident to you, and that right answer will always be “No!”

Never buy that which you cannot afford. After following the recommendations laid out here, you’ll eventually achieve a state where you no longer use any borrowed money at all, and in doing so, you’ll attain true freedom.

Accomplishing this will require you to develop certain forms of self-control. If this is an aspect of your life you’ve been struggling with, this process won’t be easy or pleasant, but after making your way through the toughest period and taking control of your finances, you’ll find that you’ll be able to buy the things you want anyway, but with money you actually have, thus avoiding the dreaded credit trap.

Of course, there are times when taking credit is simply unavoidable, be it for vital purchases around the house or some kind of investment in yourself or your family.

If you find yourself getting into debt in this way, make sure to counterbalance it with more efficient use of your time, including figuring out new sources of income to cancel out the debt. Trust me. In the end, financial independence is worth every effort.



Rule #2: Create your own stabilization fund.


In simpler terms, you need to learn to “pay yourself.” This means taking a certain share of your monthly income and depositing it into an account that’s meant to act as a stabilization fund. This can be a debit or a savings account, depending on your income and how much you can afford to put away for a long time.

I’d actually recommend having two such accounts and to set aside 10%-15% of your monthly income in total. Let’s take 10% as an example.


  1. Your retirement fund. This would be a long-term savings account that gains appreciation over time. Out of the 10% total, deposit 7% here.

  2. Your personal insurance fund. These are your savings “for a rainy day,” to cover any unexpected life events. This can be a savings account or just a checking account, depending on the rules set forth for different account types by your bank of choice.


Aside from being a wise choice that will directly help you avoid financial problems in the future, putting away money like this also has positive effects on your subconscious. Just the act of dedicating some of your hard-earned money – a resource that holds real weight in your everyday life – will reshape your inner thought processes towards a more balanced view of life, helping you avoid making undesirable, brash decisions and cultivate a mindset of self-reflection.



Rule #3: Create additional sources of income.


Another crucial rule. You need to learn to create sources of passive income in particular. The more sources of such income you have, the greater your overall influx of funds will be, and the more stable your life will become.

Passive income usually starts out small, but with persistent development of additional sources, it’s possible to actually start making more through it than you do at your day job.

Once you reach the point when your income, both active and passive, surpasses your expenses, you’ll start steadily amassing wealth, which will in turn open up new opportunities for creating even more sources of income. Simply put, you’ll be producing exponential growth.

Robert Kiyosaki, author of the renowned “Rich Dad, Poor Dad,” recommends these eight sources of passive income:


  1. A business that doesn’t require active work efforts.

  2. Investing in stocks.

  3. Buying bonds.

  4. Investing in real estate.

  5. Mutual funds.

  6. Promissory notes and bills of exchange.

  7. Patents, copyright claims, and intellectual property in general.

  8. Anything else that either steadily grows in price or brings steady income.


That final point encompasses many other potential sources of passive income, including:


  1. Websites and blogs, even if they aren’t extremely popular.

  2. And optimized, personal blog or other publishing platform.

  3. Thoroughly grown public social media pages.

  4. Mobile applications.

  5. Newsletters and other valuable information provided via e-mail.


I’ve personally managed to create sources of passive income out of most of the above outlined points, even despite not being particularly tech-savvy.



Rule #4: Count your money.


It’s important to learn to properly calculate your personal and/or family budget, including income and expenses, in order to gain a better understanding of your own money.

If you’re serious about taking control of your finances and creating the kind of circumstances that allow for the growth of wealth over time, you’ll absolutely need to follow this rule. This will mean recording your income and your expenses on a daily basis, analyzing and optimizing the latter, as well as any other activities that you believe will help you get a better grip on your funds.

You can easily start tracking your budget in an Excel spreadsheet, but more specialized software can make things easier for you. For the latter, you’ll find that you have an abundance of choice, both for desktop and mobile use.

Nowadays, budgeting mobile apps even allow you to connect your bank accounts and credit cards to them to automatically track expenses and make the whole process even simpler.

A while ago, I was asked me, “How detailed should the expenses in my budget be? I decided to record spending per item bought, but I can never seem to bring myself to spend the time needed to go through all my receipts and plug the numbers into my Excel sheet. Am I being too detailed?”

Well, I ran into the same problem myself. There’s nothing fun about managing piles of receipts, and it takes up valuable time. Perhaps, when living alone, it’s a manageable enough task, but handling all the expenses from an entire family definitely gets very complicated very quickly. In fact, this was the very reason why I quit the whole ordeal more than once.

However, after thinking for a while, I figured something out.  Initially, it does take a few months of detailed budget records to get going, but as a result, you’ll notice several similar expense entry categories responsible for the lion’s share of all receipts, such as:


  1. Groceries

  2. Children’s Goods

  3. Pet Care Goods

  4. Car-related Expenses

  5. And others that depend on your lifestyle...


I ended up identifying an approximate amount of money being spent on these categories each month and came up with an average sum, which I was then able to use as a standard and as the basis for any budget planning.

However, keep in mind that you should still track one month in detail every once in a while (one or twice per year, or after significant financial changes in life) in order to recalculate this average.



Rule #5: Demolish your negative financial convictions.


There’s a good chance that you’ve accumulated a number of negative associations related to money over the span of your life. These can be rooted in your upbringing, your character, negative experiences, delusions about the real world around you, or a number of other things. Some examples:


  1. Money won’t bring you happiness, but X will.

  2. Money is the root of all evil.

  3. I can’t afford X!

  4. I never have enough money for anything.


See anything you recognize? Well, the truth is that these kinds of negative convictions work on a subconscious level to prevent you from attracting more money.

Your goal, then, is to consciously work towards changing these convictions into positive ones. Simply put, in order for money to come to you, you need to learn to like money – a simple but important rule of wealth.

So how do you go about altering subconscious convictions? This is best done through affirmations, which we’ll be looking into going forward.

Likewise, be aware of your speech. What you say has a profound effect on your mind.

The above five rules are the most important, but there are others, which also warrant elaboration. However, we won’t spend as much time on them.



Rule #6: Don’t try to save money on insurance.


Life is unpredictable. Accidents happen. If there’s anything you should avoid wasting in this regard, it’s time. Get insured as soon as it’s financially viable.



Rule #7: Give to charity.


The more you give, the more you receive. It’s a fundamental rule of the universe. Ideally, you ought to set aside 10% of your income for this, but not everyone is in an ideal scenario, so give what you can. The thought alone is half the contribution.



Rule #8: Invest in self-development and education.


This includes learning about finances, by the way. The simple fact is that anyone can learn to control and invest funds properly, and the sooner you start, the sooner you’ll see tangible effects.

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I hope the above rules and relevant recommendations help you attain control over your finances as they helped me. Here’s a simple chart to help reinforce these rules.

The Eight Rules of Wealth Mindmap

So to summarize, we’ve now gone over what you’ll need to work on to change yourself. Now, it’s time to proceed to the how.

In the next chapter, I’ll teach you highly effective techniques that have helped many an individual to categorically reshape their life. I’m certain they’ll help you just the same.


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