If I could go back and sit my younger self down for a little heart-to-heart about money, I’d have a few things to say. Now, don’t get me wrong—I didn’t always make the smartest choices when it came to money. But if I’d had these five rules under my belt, I would’ve saved myself a whole heap of trouble. So, here they are, from me to you: five simple money rules I wish I’d known sooner (and that I hope you can use sooner, too!).
Rule #1: Spend Less Than You Earn
Now, I know this one sounds as obvious as “don’t touch a hot stove,” but you’d be surprised how many folks get this wrong. It’s real easy to spend more than you’re bringing in, especially when that paycheck feels like it’s burning a hole in your pocket. But here’s the truth: if you’re always chasing next month’s paycheck, you’re running a marathon you’ll never win.
So, first rule of thumb? Keep your spending a notch below your earnings. If you’re making $2,000 a month, pretend you’re only making $1,800. It’s not flashy, but it’ll save you from scrambling when something unexpected pops up.
Rule #2: Always Save a Little—Even If It’s Just a Dollar
I’ll tell you right now, I used to think saving was only for folks with “extra money.” Let me tell you—“extra money” doesn’t magically appear. Saving starts with whatever you’ve got, even if it’s just a buck or two each paycheck. Toss it in a jar or a bank account, and don’t look back.
Why? Because that little stash adds up faster than you think. And when you need it, trust me, you’ll be glad it’s there. It’s like planting a seed—you water it, and one day it’s there to feed you. Or at least keep the lights on.
If you need a little nudge to get started, check out this post about Starting an Emergency Fund.
Rule #3: Avoid Lifestyle Creep Like It’s a Bad Cold
Here’s what I mean by lifestyle creep: you get a raise at work, and suddenly, your taste buds crave steak instead of burgers, your car feels like it needs an upgrade, and those “splurge” items start feeling like essentials. Well, that’s the trap right there.
Every time you make a little more money, don’t start spending a whole lot more. Sure, treat yourself every now and then, but don’t let that raise trick you into thinking you need a brand-new lifestyle. Keep your expenses about the same, and stash the difference. Your future self will thank you.
Rule #4: Invest in Skills, Not Just Stuff
Look, there’s only so many things a person can buy. But skills? Skills pay dividends long after you’ve learned ‘em. Whether it’s learning a trade, picking up a side hustle, or just getting better at something you already do, investing in yourself is one of the best things you can do with your money.
So instead of spending your last dime on the latest gadget or the fanciest clothes, think about what skills you could pick up that’ll put a little extra in your pocket. Because let me tell ya, a fancy new phone doesn’t keep the bills paid, but knowing how to make or save money will.
Here is a great article in Forbes about investing in yourself – How Investing In Yourself Today will Set You Up for Career Success Tomorrow.
Rule #5: Don’t Be Afraid of “Boring” Investments
When I was younger, if someone said “investing,” my mind went straight to Wall Street and stock markets. Seemed like something only folks with money did. But here’s the thing—they’re not always out there making fast cash; sometimes they’re just making slow, steady money. And that’s where the magic happens.
Investing doesn’t have to be fancy or risky. Boring stuff like a retirement account, a good ol’ savings account, or even a CD (that’s “certificate of deposit,” not the thing that plays music) can get you ahead. It may not feel exciting, but slow and steady wins the race.
Closing:
And there you have it—five money rules I wish I’d known back in the day. They’re not fancy, they’re not flashy, but they get the job done. If I could go back and tell my younger self, I’d say: “Stick to these, and you’ll be just fine.”
I hope these little nuggets of wisdom help you out on your own journey. Let me know if there’s a money rule you’d add to the list! And remember—don’t go chasing after quick fixes. A rich life is built one smart decision at a time.
— PawPaw