7 New Rules of Money for 2024

Rule number 1. Money is a game. Money is indeed a game. This means that money has rules and if you play by the rules you're going to level up. In other words, if you play by the rules of money you're gonna make more of it. Now you're probably asking yourself this, so all I need to do in order to make more money is play by the rules? The answer is yes. In order to obtain a certain result you need to do certain things in a certain way. It is basic science. There is a What I'm trying to say is this, if you know money, how it works, why it moves in certain directions, and the basic laws that govern our financial system, you have no limit. Many people treat the subject of money like it's some complicated intricate science that is so hard to understand, but it is not. The approach of most people is deeply wrong because they have a negative association with it. For example, I grew up in a middle-class family. We weren't poor, nor rich, but we did live paycheck to paycheck. Until I was about 13, I didn't understand how serious this is. No matter how much money my parents would make, it seemed like it was never enough. We didn't really talk about it, but it was an issue that always generated stress and tension around the topic of money. I remember once my mother even said, don't talk about money during dinner, like it was some sort of evil thing. That's the case for most people. They grew up in families that have deeply negative associations with money and rich people. They grow up hearing money is bad, and rich people are greedy, or even money is the root of all evil, and even sometimes going as far as calling money the hand of the devil, or whatever. Before we proceed to the next steps, I need you to understand this. Money is neutral, and it's nothing more than a tool. If it wasn't for money, the world as we know it wouldn't exist. As Adam Smith said, the individual egoism that comes from the power of money is good for the development of society, as the market only allows value to be rewarded with money. When you understand that it's nothing more than a game, and all you need in order to succeed is to play by the rules, you will remove negative associations, and stepping into power. Rule number two, cash is king. If there's something people learn during periods of the financial crisis, is that cash is king, and it will forever be. When times are good, you always hear people talk about not keeping any cash in the bank. People will tell you that it's collecting dust, and just losing value due to inflation. Well, I'm here to tell you that saving is far more important than investing, especially at the beginning of your financial journey. I see too many young people lose everything, because they gamble their money in investment schemes that they don't even understand. When the crisis hits, like the coronavirus pandemic, you're going to It doesn't matter if you're a business owner, or you work in an office, you need some backup cash that you never touch, except for serious emergencies. That's the type of money that could save you from going bankrupt. The type of money that could save you from going homeless if you lose your job, like millions and millions of people are right now. Now, listen closely. I'm not saying that you shouldn't invest, take risks, and play the game. The whole point is to do so, but carefully. We're talking about having a minimum of 3 to 12 months worth of savings. Most people do not have that kind of money available. Actually, most people live paycheck to paycheck, which means that they're constantly weeks away from bankruptcy. In order to double and increase your money, you need to invest. But first, and most importantly, you need to be safe, and have a roof over your head during a crisis. Rule number three, patience. The topic of patience isn't taught enough anywhere. In schools, online courses, even YouTube channels don't talk about this enough. Patience is very important, for a couple of reasons. First, if you're patient, you're probably going to make more money. Let's say that you're investing, and the company you've bet your money on is making a huge profit right now. If you're impatient, you will sell your assets and cash in on your stocks. But should you really? What if, waiting just another couple of years, you may double the money that you'd make if you sold now? Now, this obviously comes with a risk. Potentially, you could lose all that money if you keep waiting. But it comes down to research and realistic expectations. This is the case of regular day-to-day investors, that do it as a side hustle, or just for fun. You always hear them complaining about selling too early, and that they could have made X amount of dollars, if only they hold on to the assets for just a couple of years more. Second, patience is the secret sauce to business success. Money doesn't come quickly. In fact, you have to make the money, not run after it. There's this famous quote that goes something like, if you chase money, it runs. If you make money, that's a huge difference. Money can also make itself, through investments. When you get to that point in your life, you start growing like never before. And the power of compound interest can work in your favor. Now, you also need to know that compounding works in both ways, up and down. Put simply, the more you win, the faster you will win. The more you lose, the faster you lose. It is exponential growth or exponential loss. If you play the doubles game, it's very easy to see how this works. Let's pretend that I gave you $1,000 right now, and every month from now on, you're going to double your money. One month from now, you're going to have $2,000. Well, that's not a lot, but wait. The following month, you'll have $4,000, then $8,000, $16,000, $32,000, $64,000, then $128,000. In just seven months, you made six figures. Now, your goal is to figure out how to actually double your money, manage the risk, and double your money monthly or yearly. One of the greatest investors of all time, Warren Buffett, also known as the Oracle of Omaha, always talks about the importance of patience. He's one of those guys that got rich slowly, with patience, analysis, and value-driven strategies. Rule number four, look where no one's looking. So, the coronavirus comes out of nowhere, and it kills some industries. Tourism, healthcare, and more are being completely ripped apart. So, the popular belief is that they're not very good industries to think about when starting a new business, or are they? Hear me out. Right now, everyone is looking for a business that is booming. We're talking about Zoom, Uber, financial services, marketing, social media, but what about the old industries? They need a replacement or an innovation to be able to survive the next pandemic. Instead of following what everyone else is doing, play your own game. Look for innovation in industries that are hit. This will also give you a lot more room to maneuver, and less competition. That's how the next Amazon will be born, the next Google, and the next Tesla. When an industry is dying, there are two possibilities. One, it will be dead forever. Two, it will be innovated by entrepreneurs. Take, for example, the case of printing. No one really reads the newspaper anymore. We've got podcasts, television, and social media. Why would I get a huge paper when I can access all that information and a lot more from a small device that I keep in my pocket? Rule number five, plan your moves in advance. Most people don't have financial goals because they're afraid that they won't be able to hit them. Well, let me ask you a question. How are you supposed to hit goals if you don't have any? Setting and achieving goals is highly rewarding and fulfilling. If you aren't doing anything with money, you're just floating around with no real purpose. Then, what's the point in working so hard? You need a purpose, and then you need some goals to set you up for success. Goals are to be divided into smaller targets, and these are your next moves. If you aren't sure about what your next moves are, just think about the first most logical step to take towards your goal, and do that now. Planning your money moves will also help you save more money and combat free spending. You will discipline yourself by setting limits on spending, and ideally, you'll start making more money with time. Rule number six, people that tell you to stay away from debt don't know what they're talking about. There are many types of debt, so don't get me wrong. I'm not talking about credit cards, student loans, or mortgages that you won't be able to pay. To use debt in a positive manner, you need to know what you're doing, and you need to be confident that you'll be able to pay it back in time. I'm actually talking about business loans to acquire or fund a business. This takes a lot of time, so don't expect it to be easy. I've seen too many people talk about debt like it's this evil monster you have to run from. Credit cards are good. They build your credit score. If one day you want to buy a house, your credit score will be used to decide if you're trustworthy enough or not. Also, if you use debt properly, it will easily make you a huge profit over the first months. Just be very careful with it, as if you make mistakes, you might regret them forever. Debt is a powerful, deadly weapon, but you have to know how to use it. The negative consequences of failing at using debt properly can get you in very serious trouble, so be cautious when dealing with loans. Make sure you have a plan to pay it back, and backup plan if plan A goes south. Rule number seven, what can't you see? There are things that we just assume are true. The secret of proper strategical thinking is to question everything, and to look for what you're missing all the time, because that's what usually gets you. Question the core of your beliefs, and stop assuming that you're always right. Don't let your emotions get in the way between you and success. Look for the good in everything, and be optimistic, but don't be a fool. And that's it. Those are the rules of money that you must keep in mind for a The most important one of them all? Rule number one, money is a game. Always remember that in order to make money, all you need to do is do certain things in a certain way. That's it. Now you need to watch this, how money makes money, and this, how to spot a good investment. Well, I hope you guys enjoyed the video. If you did, give it a thumbs up, and comment below your thoughts. 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