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Money Rules

I have a tumultuous relationship with money. It’s part of the reason why I made my finances public, here. I am fortunate enough to not have to think about my bank account, yet I still do every day. Part of my morning routine, alongside things like “reading the various daily newsletters I subscribe to”, is checking my account balance. There is always more than enough money to cover my expenses for the day yet I succumb to the anxiety of not knowing. The difficulties I have with money extend beyond frequent visits to my banks website. To leave my apartment is to spend money and thus raises the question; can I afford this? This is normal, we all must decide if we can afford to do the thing we want to do. I’d argue what’s not normal is sacrificing your health for the sake of your bank account, answering “No” for no good reason. This is where I find myself today.

What are Money Rules?

I first learned of “Money Rules” from this tweet by Ramit Sethi. To sum it up in one sentence, Money Rules are:

Principles one can you use to govern how to spend or save money.

They are not right or wrong they just are. Yours will be different from mine and that’s okay! Mine will change over time and that’s okay too!

Since I’ve started thinking about what my money rules are I’ve also noticed a change in my financial dysfunction, they’ve given me the mental space to spend the money I have without the accompanying anxiety. By deciding on what is okay to spend money on I’ve found the space to spend the money, guilt free.

My Money Rules.

  1. Never go into debt.
  2. Always have at least 6 months of expenses in a cash emergency fund.
  3. Save at least 40% of my income.
  4. Never question spending on experiences with friends (dinner, drinks, etc.).
  5. Never question a visit to a local coffee shop.
  6. Save for travel every month (and spend it at least twice a year).
  7. Never question spending on hobbies.

They’ll definitely change at some point but for now they are doing exactly what I need them to do.

Published on June 16, 2019