We all work very hard from morning to evening so that we can earn money for ourselves and our loved ones. However, the tragedy is that there are very few people who are skilled in managing their finances.
In this blog, we will discuss how to manage your money. I will share with you seven rules that I follow and share with friends and relatives about money management.
Why Most People Struggle With Money
Do you know where the problem is?
If you want to become a doctor, then it is taught in a college. There are colleges for engineering. Some colleges offer programs to prepare students for a career as a lawyer. Even if you want to manage finances, there are CA courses and finance courses available.
However, when it comes to real-life money management, no such course is available.
This blog will not teach you how to earn crores in 10 minutes, but it will save you from making mistakes that could cost you lakhs—or worse, ruin your career or business.
My Experience With Money
Over the last 20–30 years, I have been involved in managing money, dealing with financial matters, and training individuals. I’ll share some insights with you from my relationship with money.
These are the rules I follow, which I learned from my ancestors.
There are two skills in life you must learn:
- One is saving money
- The second is investing your savings
You will learn both these skills by doing. So, why not start today?
Rule 1: Start Saving Early
I started saving when I was in school. Whatever little pocket money I used to get, I didn’t spend all of it. I used to save a portion and buy something meaningful with it.
Wherever you are in life today, start saving and investing as early as possible.
Rule 2: Understand the Power of Compounding
When you start saving and investing early, your money begins to grow over time. This is the power of compound interest, which is also known as eighth wonder of the world.
This law is so powerful that I can write a separate blog on it, but here I’ll say: Start early to let compounding work in your favor.
Rule 3: Avoid Investment Decisions Based on Social Media Hype
Don’t make your investment decisions based on internet and social media hype.
Never decide where to invest based on what’s trending or what influencers are saying. Every year, something new will trend—stocks, property, crypto, NFTs.
Rule 3A: Invest where you have knowledge and control.
Rule 3B: Don’t decide based on 1–2 success stories.
If you do want to try a trending option like crypto or NFTs, limit your exposure—maybe 5% or 10% of your total investments.
Rule 4: Track Your Spending
Track where you spend your money. Every month, money comes into your account—you must know where it goes.
What gets monitored gets improved.
Make a habit of writing down daily expenses. My father used to write on the last page of a diary. When you have data, you have control.
Data doesn’t lie.
Rule 5: Don’t Spend to Show Off
Never do expenses to show off.
Examples include home renovations, luxury gadgets, extravagant weddings, and expensive cars. Only spend what you can comfortably afford.
Never take personal loans for the luxuries of life.
Avoid falling into a debt trap with EMIs and credit cards.
Buy a house only after you’ve covered all your financial basics and have huge surplus funds.
Rule 6: Keep Investment and Friendship Separate
Keep your friendship and investment separate.
Your friend might join a new insurance or stock company and pitch you something. You buy it out of emotion, but in 6 months, they switch jobs.
Make investment decisions based on research, not emotion or relationships.
Your money is the result of your hard-earned effort—treat it with respect.
Rule 7: Increase Your Income Every Year
Your income should increase year on year. You can grow income in two ways:
Become better at your job, gain skills, earn promotions
Start a side hustle
I worked for four years, focusing fully on my job, and continued to grow and develop. Later, I transitioned to a business full-time. You decide what suits you best.
But the point is the same—your income must grow every year.
Bonus Rule: Don’t Postpone Joy
Don’t postpone enjoying your life just because your investment fund is not big enough.
Keep 5–10% of your income for enjoyment—whether it’s holidays, luxury items, or personal indulgence.
Money comes and goes—time only goes. You will not get back these years.
Even if you earn big in year six, you won’t get back years 1–5. So, live fully and wisely.
Final Thoughts
These are the seven principles I have personally followed. They have not only helped me earn a substantial income but also provided me with a better quality of life.
I pray that the power you believe in empowers you to earn well, stay happy, and make informed investments.
So friends, Start doing something that inspires others. Along with money, start earning blessings too.