First things first, what is an axiom? The word comes from math but since I suck at math, let’s just put it this way, an axiom is a universally accepted principle or rule. That’s what these are, universally accepted financial principles. They always work no matter how much money you have or don’t have.
The most important financial axiom you need to know is: You must spend less than your earn. If you get this one, everything else is easy but if you ignore this one, it doesn’t matter what else you do. Stats continue to show that more than half of Americans spend 105% of their income. Only the federal government can get away with that.
When it comes to knowing how to spend what you earn, David Rockerfeller’s plan is still the best one out there. Give 10%, Save 10%, Live on 80%. This plan helps you learn to be generous and develop the habit of saving. It also teaches you to have financial margin in your life instead of living paycheck to paycheck.
One day I was sitting with a older gentlemen who had been very successful and he told me something about how many days a week to work that I’ve never forgotten. If you can’t make a living working 6 days a week, you need to find another line of work. I’m never impressed when a guy tells me he works 7 days week. It doesn’t prove he’s a hard worker, all it really proves is he’s dumb.
This next one is so simple that I’m tempted to not even include it. BUT I know it’s not done nearly as much as it should be. Pay what you owe, when you owe it. That’s it. Pay your bills. This is the secret sauce to how a young guy builds his credit score.
I can keep going but I’m going to stop with this one: Don’t spend money you don’t have on stuff you don’t need to impress people you don’t even like. It’s amazing how many guys go broke trying to impress the world. Even the people they don’t like. In fact they may spend more to impress those folks than anybody else.
Here’s your next step: Write down everything from this post that’s in bold type in your iphone, computer or maybe even on notecards, and then start handling your money according to them. When you do you’ll see how peaceful life can be when you’ve got financial stability.