12 Rules to Replace Money Problems with Financial Freedom

Rule #1: Be Very Careful with Every Dollar

When money is tight, treat every dollar like it matters—because it does. Careless spending creates a bad habit of living beyond your means. Careful spending builds the habit of control. Examples:

• Cancel subscriptions you no longer use.
• Wait 48 hours before nonessential purchases.
• Buy used things instead of new things.
• If you need to agree to future payments, take your time to work out the best deal you can.

If you have no money, get creative! Use your intelligence to discover brilliant new solutions to earning money.

You don’t need money to make money. You just need to be smart.

Rule #2: Share Your Progress, Never Beg or Complain

Sharing your money struggles only brings pity, not solutions. Complaining about money ruins your image. It also makes your creditors worry you won’t pay them back.
Instead, talk about your goals and share your progress:

• “I’m training myself to earn more money.”
• “We’re starting an incredible new service.”
• “I’m excited about the future!”

This builds confidence, trust and security.

Rule #3: Control Your Money

If you fail to control your money, you lose it with irresponsible, impulsive spending. Instead, be a professional and spend your money with a weekly plan.

Set aside one time each week, like Sunday night, to spend money. Avoid spending money during the week. Make your spending decisions based on these four facts:

● How much money you currently have available
● How much you currently owe now and during the next week
● What you need to buy and how much each item costs
● How much you must earn during the upcoming week

As a result, your decisions will be smarter and lead to your financial success.

Create a form that shows the date and the four financial facts. At the bottom, write down your spending decisions.

Example:
Date: September 7, 2025
Account Balances: $4,321 ($123 in cash, $1233 in checking account, $2965 in set-aside account for loan payment)
Amount Owed: $1141 now (rent, phone) and $6000 next week (loan payment)
Amount Needed During Week: $241 ($211 for food, $30 for gas)
Must Earn: $1141, $6000 and $241 = $7382 minus $4321 cash available = $3061 needed
Plan: Pay rent and phone. Spend up to $241 for food and gas during the week. Focus on making at least $3061 during the week so I can pay the $6000 loan payment next week.

You now have control of your money and know what you must do.

Rule #4: Never Spend More Money than You Earn

This rule is a law that no one can break. If your expenses are bigger than your income, either increase your income or cut your expenses . . . fast. If you cannot quickly increase your income, you have no choice. Reduce your spending.

Examples: Move to cheaper housing, stop eating at restaurants, switch to lower-cost phone plans, put a limit on travel expenses and avoid new commitments until your income is safely higher than your expenses.

Rule #5: Learn to Say “NO”

Demands for your money come from every direction: friends, family, employees, advertisers, habits and influencers.

If it’s not easy for you to ignore money demands, stand in front of a mirror and practice saying “NO.” It’s easier when the time comes.

Examples: Say “no” to new debt, refuse plan upgrades, give loans to no one, add no new expenses and avoid new “deals” based on hype or hope.

Rule #6: Spend Money on Things That Pay Back Extra Money

Every time you spend money it is either gone or it comes back to you. For example, you buy an apple, you eat it and it’s gone. You don’t get two apples back. But if you buy an apple tree and plant it, you get hundreds of apples back.

When deciding how to spend your money, try to always get something back. Ask yourself questions like these:

• “Will this purchase put extra money back in my pocket?”
• “If I pay out $1000, how much more than $1000 will I get in return?”
• “What’s the Return on Investment (ROI)?”

Examples of Bad ROI with zero return: The newest iPhone, a 10-day Hawaiian vacation for your employees, or a brand new car.

Examples of Good ROI with great money return: A reliable car to get more work, a marketing project that brings in extra paying customers, or a brand new house.

Investing in yourself can be your biggest ROI. Spend it to make yourself smarter, more useful, saner and more powerful. Constantly improving or adding to your work and life skills always boosts your income, sooner or later.

For more examples, read “How to Spend Money to Make Money.”

Rule #7: Save Before You Buy

If you want something big or expensive, the worst thing you can do is add more debt. Leasing or using credit to buy something is bad for your financial future.

Instead, save a little bit each week to buy your big purchase. You then get a better price because you wait. You may find you actually don’t need to buy it or can use something else for free. You also enjoy more self-respect as one of those rare “pay as you go” people.

Instant satisfaction feels good, but is expensive and temporary. Delayed satisfaction does not include more debt and feels good for many years.

Examples: New car, fabulous vacation, top-end laptop, swimming pool, office furniture.

Rule #8 Trick Yourself into Saving Money

To do this, arrange weekly or monthly “bills” that buy things you can cash out later.

Examples: Automatic deduction from your pay into your retirement account, loan payments for some land that is growing in value, costs to buy a partnership in a growing business.

Read “The Secret to Saving Money” for more examples.

Rule #9: Focus on Earning Money, Not Your Money Problems

Once you know how much money you need to make, stop worrying about your money problems and debts. Put most of your time, attention and work on EARNING MORE MONEY.

Example: You calculate you need to earn $3000 extra this week, so you spend every hour of the week working to get it. You produce more each day, spend more time promoting yourself, add a new income source, learn a new skill, increase the value of your work, help someone do a better job or negotiate a better deal. You make it go right and earn $5000 extra and know how to do this EVERY week now.

Rule #10: Don’t Buy Popularity

Never give money to people so they will like you. Don’t try to buy status. Trying to be popular with fancy clothes, cars or gadgets is a huge waste of your money.

• “Hey Jill, you’re making more than us. Buy us lunch!”
• “Wow, you look good in that new Corvette. If you get it, women will want you!”
• “C’mon boss! Give us all a raise and we’ll really love you.”

Another part of this rule is to not give personal loans to be liked. At first you are loved, but you’ll probably lose this love when you ask for payments. You may even forgive the debt to restore the friendship, and lose all the money.

More examples: Ignore expensive furniture stores. Never buy devices to make a good impression. Decline hosting parties. Eat at home with your family instead of eating at expensive restaurants with big shots you dislike.

Read “How to Be Liked and Admired” for a better way.

Rule #11: Calculate Your Biggest Income Loss

The biggest way you lose money is not from high interest rates, taxes or criminals. It’s from NOT making the money you SHOULD be making.

Office assistant example: You could be earning $4,500 a month if you learn a new software program your company uses. Yet because you do not take the free training, you stay at $3,800 a month. That’s $700 lost each month.

Dentist example: You SHOULD be earning $18,000 pay per month, but instead of working at least 8 hours per day, you only work 6 hours and then play golf for 2 hours each day. You lose $4500 per month.

Business example: You have enough customers, spaces and staff members to earn $100,000 per week, but your only make $80,000 per week. This is a loss of $1,040,000 per year.

This is also known as an “opportunity loss.”

When you reach your true earning potential, NEW opportunities to earn even more appear.

Rule #12: Use Your New Wealth to Get Richer

When you finally have more money than you need, don’t lose it! Do not get a big loan or waste it with careless spending.

Instead pay off every dime you owe and invest the leftover money into things that will earn more money for you. You are on your way to wealth!

Examples: Pay off all debts, even your house mortgage. Pay off your credit card balances every month. Invest in your property, the stock market or yourself.

Once you have all the money you need and want, then spend the excess however you wish! Trips, cars, donations, gifts and boats. Enjoy!