The Golden Rules of Money - How To Be Good With Your Money

The Golden Rules of Money - How To Be Good With Your Money

 To be good with money is something 

that many people aspire to achieve,  

and the good news is that anyone 

can become good with money. 

Of course, being good with money means different 

things, to different people. Most people would  

agree it’s knowing how to save and invest, 

where to cut costs, having good cash flow,  

and managing debt. Others say it’s about 

always having a backup plan, keeping a good  

credit score, or having a plan for retirement.

While most people think that managing money is  

something that comes naturally, the truth of the 

matter is that it’s a skill just like any other.  

While some people are better at sports than 

others, the same principle applies with money, you  

just need to learn how to handle and manage it.

And fortunately for you, there are plenty of tips  

that can help you think about money differently, 

and help you get the most out of your income.

So how about we look into some of them.

In today’s practical wisdom video, I’ll be 

sharing with you in no order of importance,  

nine golden rules of money. And thanks to 

today’s video sponsor (Establish Titles),  

I’ll tell you how you can become a Lord or Lady.

So, to briefly highlight 

these nine rules/principles,  

they are:

- Working on your mindset

- Creating a financial plan

- Create a budget

- Track your spending

- Limit your credit card purchases

- Regularly save

- Invest

- Pay down debt

- And stay informed and motivated

Now let’s look at the first one.

1. Work on your mindset

If you’d like to be good with or get better  

at handling your finances, you must be in the 

headspace to do so. Figuring out how to be good at  

saving money always begins with your mindset. One 

must work on their mindset and empower themselves  

mentally to succeed. This could be achieved 

by keeping a journal, reading books, watching  

motivational videos or having a mentor. These are 

some of the ways to keep your mindset in check.

When it comes to spending money, being 

conscientious is ultimately rewarding.  

In other words, the more money you have from 

saving, the more ways you get to treat yourself.  

This is just one of the benefits.

It’s imperative to start viewing money 

differently to see changes to your finances.  

Think about the things you 

value most in your life. And  

then think about which ones you 

think, depend on your finances. 

Once you start viewing monetary decisions 

around this, you’re getting much closer  

to your financial goals. If you want 

to get better at managing your money,  

you have to keep it at the forefront of your mind. 

As the saying goes: you become what you think.

2. Create a financial plan

It’s much easier to get where you are trying to go  

when you have a plan in place. The moment you’ve 

laid out your goals, you want to create a plan  

to achieve them. How are you going to set up an 

emergency fund, pay off debt, save for retirement  

and all the other things you’d like to do with 

your cash. Determining how much each goal will  

cost is a good place to start. After that, figure 

out how much time you need and then set things up  

to start designating funds for each of your goals 

according to the priority you have assigned them.

Setting goals helps you understand your 

why for doing something. It gives you  

something to work towards, or simply gives you 

a reason to be better at handling your money.

In the process of setting your goals, remember 

that you want them to be measurable. The big goals  

should be broken down into smaller chunks so that 

you aren’t overwhelmed by pursuing massive goals.

Before moving on to the next rule, I have 

a question for you, how would you like to  

become an official Lord or Lady? Well, thanks 

to Establish Titles (today’s video sponsor),  

just about anyone can become a Lord or Lady. 

By purchasing just one square-feet of land you  

can officially declare yourself, a Lord or 

Lady. And since it’s an official document,  

you could officially change your name to 

Lord or Lady, and get it on your Credit card,  

plane ticket and so on. Or, you can 

even get it on your dating profiles.

So, therefore, from today henceforth you 

can officially call me: Your Lordship.

Alright guys, so, Establish Titles is a project 

based on a historic Scottish custom where  

landowners are referred to as Lairds, or Lords and 

Ladies in English. Establish Titles allow people  

to buy as little as 1 sqft of dedicated land so 

that they can call themselves a Lord or Lady.

I think this is a wonderful 

gift to give to anyone,  

or if you just want to call yourself a Lord 

or Lady, plus it comes with a good cause too.  

You see, for every order purchased, one tree 

is planted. Establish Titles works with global  

charities One Tree Planted and Trees for 

the Future. To preserve the picturesque  

Scottish woodlands and biodiversity while 

supporting global afforestation efforts.

When you purchase your land, you get an official 

certificate with a crest, and your certificate  

features a unique plot number with which 

you can see the exact location of your land.

Right now, Establish Titles is running a big sale,  

and if you use the code PRACTICAL10 

you get an additional 10% off. So go to  

EstablishTitles.com/Practical10 

to get your gift now.

Now let’s move on to the third point.

3. Create a budget

Creating and sticking to a  

budget is no easy fit, but if you’re serious about 

getting better with money you need to embrace it.  

Your budget is there to help you keep 

track of your income and spending.

You should aim to spend less than you earn 

and widen the gap between your income and  

your expenses so you can free up some 

funds to attain your financial goals.

The secret to successful budgeting would be 

identifying a budgeting method that makes  

things easy for you, and one that you like.

Many people don’t budget because they don’t  

want to go through the whole process 

of writing down their expenses,  

doing all the math, and 

ensuring everything adds up.

If you have trouble managing your 

money, the solution isn’t that hard.  

All it takes is for you to get your spending 

on track, and this only takes a few hours  

working on your budget each month. Instead of 

focusing on the process of creating a budget,  

focus on the value that budgeting 

will bring to your life.

Budget management skills are essential 

for getting the most out of your savings.  

Having to constantly think about budgeting 

helps encourage stronger financial and  

lifestyle decisions, enabling you to secure 

future retirement savings, monthly purchases,  

house costs and bill payments more 

effectively. There’s no time like the  

present to start budgeting and good financial 

skills only work better with commitment.

4. Track your spending

Creating a budget isn’t enough.  

You need to track your spending. 

Start tracking your spending to  

discover areas where you may 

be unknowingly overspending.  

Small purchases add up quickly and before you know 

it, you’ve spent more than you’re supposed to.

Tracking your spending involves identifying 

your expenditures throughout the month.  

It’s an essential activity that you should 

ideally do every day throughout the month.  

When you’re working on your budget, it’s 

important to distinguish between fixed and  

variable expenses, to understand how you can make 

an impact. Revisit fixed expenses like insurance,  

your subscriptions and even your mortgage 

or rent, on an annual basis to see where  

you could make a change that could lead to 

long-term savings. On the other hand, variable  

expenses such as dining out and entertainment 

are easier to control on a monthly basis.

It may seem like a lot of work to itemise 

your expenses when you first begin,  

but understanding why it’s important to track 

expenses and how to do so with minimal effort  

can help you successfully commit the activity 

and become more aware of your spending.

5. Limit your credit card purchases

When you ran out of cash, it’s tempting to turn  

to your credit cards without considering whether 

you can afford them or not. Resist the urge to  

use your credit cards for purchases you can’t 

afford especially on items you don’t really need. 

Unless you follow a monthly budget 

and can easily pay your credit card,  

this can be dangerous. By keeping common 

purchases like groceries and utility bills off  

your credit card balance, you’ll take a major 

step in getting your spending under control.

Delayed gratification goes a long way in helping 

you get better at handling money. Putting off  

large purchases instead of sacrificing more 

important essentials or putting the purchase on  

a credit card, gives you time to evaluate whether 

the purchase is necessary and more time to compare  

prices. So, if you’re thinking about making 

huge purchases, it’s better to save up first.

By saving up rather than using credit, you 

avoid paying interest on the purchase. Plus,  

if you save rather than skip bills or obligations,  

you don’t have to deal with the 

consequences of missing those bills.

6. Regularly contribute to savings

Depositing money into a savings account at the end  

of each month helps you build healthy financial 

habits. You can even set it up so the money is  

automatically transferred from your checking 

account to your savings account. By doing so,  

you don’t have to remember to make the 

transfer, as it will be automatically done.

Automation is one of the easiest ways for you 

to get better at handling money. Studies show  

that people who automate their savings save more 

than people who don’t. They don’t give themselves  

a chance to debate whether they should save 

or not as a result. The money is automatically  

assigned to your savings account, and you don’t 

have to go through a long process to access it.

Different banks offer different interest rates 

on savings accounts, look around for one that  

is on the higher side of interest rates to 

get you the best cashback on your account.

Saving money allows you to enjoy 

greater financial security in life.  

If you have cash set aside for emergencies, you 

have a fallback should the unexpected happen. 

Despite the importance of saving money, many 

of us aren’t following through on it. When it  

comes to doing the right thing financially, 

just knowing you should save isn’t enough.

7. Invest 

If you’re trying to find ways to increase your 

assets, investments are a good way to spend  

money wisely. In order to build your wealth, 

you will want to invest your money. Investing  

allows you to put your money in vehicles that 

have the potential to earn strong returns.

You might not be an experienced investor but there 

are several simple investment platforms these  

days that can offer you more interest on your 

investments per month than a savings account can.

When done right, investments can help supplement 

income and they can be a good form of cash flow.  

Talk to an investor or fund manager for guidance 

if you aren’t sure where to put your money.

If you never invest, you’re missing out on 

opportunities to increase your financial worth.  

Of course, you have the potential 

to lose money in investments,  

but if you invest wisely the potential to 

gain money is higher than if you never invest.

8. Pay down debt

Managing debt is an  

essential responsibility for good budgeting, 

and is one of the necessary money management  

skills you need for financial independence. 

When you create a budget to manage debt,  

your bill repayments are one of the 

first things you should factor in.

Before taking on additional debt, 

make sure you can budget repaying it  

including any possible interest that may 

come with it. Always do your research in  

choosing the best personal loan offer for 

your financial situation. It’s important  

to note that once you’ve acquired any debt, 

you have a fiscal responsibility to repay it.

When you set up a budget, focus 

on paying off the debt first,  

and don’t spend frivolously until you do.

9. Stay motivated with 

financial podcasts and videos 

There are so many ways you can learn to save 

and invest your money. Educating yourself  

consistently on different financial 

issues helps you be better with money.

The amount of financial content available online 

is staggering. Along with articles and videos,  

there are countless podcasts that are 

devoted to helping you pay off debt,  

invest wisely, and retire comfortably.

Topics can range from money basics to  

advanced investment strategies and these 

podcasts can be formatted in a variety of ways.

Listening to financial podcasts regularly 

and watching videos motivates you to  

achieve your financial goals. When you 

listen to others who have been able to  

overcome their financial struggles, 

you soon realize you can do it too.

Having excellent money skills will greatly 

improve your quality of life, present and  

future. Being able to focus specifically on 

spending habits can help you manage your debt,  

deal with outstanding credit card debt payments, 

and increase your retirement account tremendously.  

When you create a budget you’ll get a better 

understanding of why being wise with money  

makes such a big difference in your daily life.