18 Money Rules You Must Understand

Want more money?

If you respect money and play the game of money by knowing the rules, you will see a world of abundant money and will make money work for you.

So let me share 18 little money rules from one of my favourite columnists - Morgan Housel

1. Emotions can override any level of intelligence.
2. Confidence rises faster than ability, especially among young men.
3. The only way to build wealth is to have a gap between your ego and your income.
4. No one’s impressed with what you have.
5. An asset’s ability to let you do what you want, when you want, with who you want, is ROI that can’t be found on a spreadsheet.
6. About once a decade people forget that bubbles form and burst about once a decade.
7. Your investing ability is unproven until it’s survived a calamity.
8. Spending money to show people how much money you have is the surest way to have less money.
9. Avoid disaster, be patient, and you don’t need many smart decisions to do well over time.
10. Big words mask little thoughts.
11. You will adjust to most positive financial circumstances, except when it causes you to lose control over your time, which will always hurt.
12. The goal of investing isn’t to minimise boredom, it’s to maximise returns.
13. It’s easier to lie with numbers than words. As the saying goes, more fiction has been written in Excel than in Word.
14. Your circle of competence is smaller than you think. Your susceptibility to bias is larger than you think.
15. Reducing your desires has the same effect as leveraging your assets, but with no downside risk.
16. Solutions to problems can be shockingly simple; Getting people to adhere to simple solutions can be shockingly difficult.
17. Debt removes options, savings add them.
18. Compounding requires absorbing damage so you’re never forced to quit.

Source:  Collaborative Fund - Morgan Housel

ALSO READ: 11 rules for successful property investing

About Michael Yardney Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.