Whether you're playing chess Checkers or the game of life there are always rules
to follow those who know the rules almost always seem to see more success
than those who don't which means that mastering the rules to see quick attack
to getting the results you want sadly when it comes to money most people
haven't a clue what the rules to wealth are and as such we'll find themselves
living Financial mediocrity forever fortunately you don't have to live in
the dark any longer because in this video I'll share with you five money
rules to fall for life and if you're new to the channel then hit the Subscribe
button below for more life-changing content money world number One never
cheap out an education for most people the thought of learning is about as
appealing as rubbing their grandmother's feet and while this is unfortunate both
this sentiment towards reading and rubbing some old crusty feet education
truly is the key to unlocking financial prosperity in your life but why do so
many people have such a resentment for learning if you ask me this dislike for
Education stems from two primary issues the first issue is the cost most
post-secondary education style cost students tens if not hundreds of
thousands of dollars to obtain and as such many young adults are starting
their life saddled with debt loads that will take them decades to detach from
the second issue is that the actual value of set education actually provides
them I can maybe think of a handful of lessons I learned throughout the seven
years of my post-secondary education that I actually used on a regular basis
and this is coming from someone who works in a field relevant to their
studies therefore as the years go by students are paying more and more money
for less and less value the trouble is however that this disdain for learning
is holding people back from achieving all their financial goals in life in the
world they live in today you need to possess a valuable and updated skill set
if you want to be competitive on the open market this means having a Cutting
Edge education from either repubal college or one that was self-obtained
fortunately with all the resources that are online these days more and more
people are becoming aware that college isn't the only path you can take to
achieve higher levels of knowledge now like I just said there are a ton of
resources out there from what you can learn some great skills but one of the
traps people tend to fall into is what I call the Allure of free mo most people
seek the least costly options for Learning and while I too am a fan of
getting a good deal when it comes to your education this is not an area where
you want to cheap out this is for two reasons first if you want to ensure you
gain value from your education you need to make sure you're learning from
credible sources so grifting free information off someone's blog probably
won't be as credible as taking someone's course that has over 5 000 positive
reviews secondly pay attention to what we pay for so many people accumulate
amounts of free resources but give them a little attention because they simply
don't value them because of their low cost of acquisition in my experience
you'll take your education more seriously when you have skin in the game
by paying Force at education therefore while I'm not telling you to empty your
bank to learn I am saying that paying to play can actually get you much further
ahead than you probably realize therefore if you take learning seriously
and sidestep the trap of free learning then you'll be one step closer to
reaching your financial goals money rule number two only by assets you understand
let me ask you a question would you marry someone without ever meeting them
for most people the thought of making a decision of such magnitude with very
little background info on the person would seem like a recipe for failure and
to that I agree however when many people these days fail to understand is that
this is exactly what they are doing when they buy a stock or any asset for that
matter that they don't understand over the past year online Brokers like
Charles Schwab TD Ameritrade E-Trade and Robin Hood saw new accounts grow as much
as a 170 percent which is indicative of the massive spike in interest in Stock
Investing that we saw during the start of the pandemic unfortunately many of
these new investors adhere to the investing game plan of seeing which docs
everyone else was talking about and buying those ones too of course for some
this gamble did pay off but for others it led to financial ruin as they ended
up buying at Peak stock prices which fell shortly after and have never
recovered therefore in the same way that you would get to know someone before you
marry them you should be doing just as much vetting when it comes to your
Investments for instance if you were looking to buy a new stock for your
portfolio you would want to know who the management team is with their strategic
objectives are for the short and long term and would want to perform or at
least consult Technical and fundamental analyzes now I know for most people that
the thought of having to do all this work just to invest a couple thousand
dollars into a stock seems like a hassle and honestly this is why I seldomly do
it personally I find that I get a much higher return in my investment by
identifying one or two low-cost index funds and making weekly contributions to
said funds this way I limit my time spent researching and vetting assets to
put my money into so that I can spend more time advancing my career working on
my businesses or just enjoying the non-monetary pleasures of life therefore
the key takeaway here is to never buy assets you don't understand when you do
you're gambling not investing and as you know when you gamble The House Always
Wins money world number three always maintain one year of living expenses you
know what rhymes with emergency no me neither but what I can tell you is that
emergencies are a part of life and having cash to deal with them is a must
it's for this reason that I always recommend people set aside at least one
year's worth of living expenses that will allow them to tackle life's
unexpected surprises now you may be thinking but why a year Year's worth
isn't three to six months enough no no it's not it takes the average person
four months to find a new job if they become unemployed and if you're on the
slower end of that timeline you can see how the general wisdom of having three
to six months set aside can be rather ineffective in keeping you financially
afloat now I know that the thought of using your free cash to set up an
emergency fund isn't that exciting but let me share with you two benefits
you're going to realize instantly when you do get this part of your finances in
order first you're gonna have a less Financial stress knowing that you can
tackle any unforeseen expenses is a huge flex and will eliminate those late night
worries we've all experienced when we're in fragile Financial States moreover the
other benefit you'll enjoy when you have ample cash set aside is more flexibility
in your life you want to change jobs or just take off over an extended period of
time to relax recoup or contemplate the next chapter of your life then you can
so given that setting up a proper emergency fund is a must how do you go
about doing it for most people this will require some consistent effort but
fortunately with the right system in place it can be a rather painless
process what I recommend is calculate what your annual living costs are and
then set up automated savings deductions from your paycheck with your employer
High between five to ten percent of your paycheck Road into a savings account
every month until your emergency fund is adequately funded based on the living
expenses you've identified as being needed to get you through a full Year's
worth without work by setting up this approach as long as you have a regular
paychecks coming in your emergency fund will fill up over time and you can enjoy
all the benefits I just mentioned money rule number four surround yourself with
financially Savvy people one of the best businesses I've learned in my 30 years
on Earth is that the ship Rises with the tide if you're unfamiliar with the
saying it means that if conditions around you are prosperous then you will
prosper as well unfortunately the same can be said in the opposing way if
you're surrounded by hardship or a lack of prosperity then your own success will
be in Jeopardy fortunately or unfortunately not only have I been told
this wisdom by those I've interacted with so far in my life but I've also
experienced both these situations first hand back when I was working in an
up-and-coming management consulting firm I saw large jumps in both my experience
level and income due to the company always taking on new and exciting
projects and having the money to constantly increase my pay this was an
example of my boat Rising with the tide of the company's success however in more
recent times working in a sector that was shut down by the pandemic led to
Career stagnancy regardless of how hard I tried and how well I perform it's for
this reason that if you want to get ahead of Financial in life you need to
be spending as much time as possible with those who will raise your ship
however it's not enough to just hang around with people with similar
interests as you this is where most people go wrong instead you should aim
to be the most inexperienced and least successful person within your Social
Circles this way you can absorb as much information and wisdom as possible and
use these bonds to help you make strides in your own Financial Endeavors in fact
this approach could be used in all aspects of your life and I found it to
always be beneficial for instance Beyond spending time with people who make 10
times more than me I spend time with those who are more fit more well read
and the like therefore when you upgrade your Social Circle you will inevitably
be upgrading your life as well money rule number five never rely on one
source of income one of my favorite memories is the child was going down to
the local ice cream shop and getting a three scoop cone however one day as I
was going to take a bite the top scoop fell off this was my first experience at
heartbreak at the innocent age of nine years old fortunately I had two scoops
left on the cone so it wasn't all bad and little to my knowledge this day
taught me two very important lessons the first lesson is that I needed to be more
careful when eating my ice cream the second was that having a contingency
plan in place is key to success now I don't know if most people never had a
traumatic ice cream experience before but I see way too many people these days
living this single scoop ice cream life and if you ask me this is a recipe for
disaster look no further than the wage stagnation that exists in the western
world and the ongoing layoffs that we saw during the pandemic and will become
instantly clear as to why having just one source of income is an indivisible
Financial move whether you've already come to this realization of how fragile
having one income is or you're just being awakened to it now the question
you you probably have is what other ways can you start to make more money if you
ask me there are two categories of alternate income sources which I
classify as low and high hanging fruit opportunities low hanging fruit
opportunities are those that are easily accessible and offer you more
opportunities for income right away examples include picking up a part-time
job or working in a side hustle these are good options if you need cash now
but offer a lot less value in the long term because of their income generating
limitations on the contrary there are high hanging opportunities these come in
the form of starting and running side businesses or offering a high income
skill to the open market generally starting to make money in these ways
takes more time than the low hanger fruit counterparts but their long-term
returns tend to be worth the extra effort for example my YouTube channel
didn't make me any money for the first two years and now it makes me over a
hundred thousand dollars a year and requires less than five hours of work a
week on my part because of the system I use and teach to my students in my
course six figure tuber regardless of which path you choose to supplement your
income the key is to put in place alternate means of making money not only
will this allow you to raise your overall income but will insulate you
from the harsh economic world that we live in today which if you ask me is an
enviable position to be in hey it looks like YouTube thinks this next video is
the one that will change your financial life forever give it a watch and let's
see if they're right