These rules are the guardrails on the winding road to financial independence.<ul><li class="ql-align-justify">Break them, and you might find yourself careening off a climb into debt.</li><li class="ql-align-justify">Follow them, and you’ll be cruising into a life of comfort and security.</li></ul>Let’s explore these seven unbreakable rules, each inspired by the wisdom of financial icons, literary treasures, and hard-earned lessons.

7 Money Rules You Should Never Break

In All Your Worth: The Ultimate Lifetime Money Plan , Elizabeth Warren introduces <a href="https://cosmopolitanmindset.substack.com/p/stop-wasting-money">the 50/30/20 budgeting rule </a>. This approach ensures you spend only 50% of your income on needs, 30% on wants, and save 20%. And it can save you from paying too much for things you can’t afford.It’s a simple rule. But it works even for people who don’t have much time to budget and track their expenses daily.

6. Never Spend More Than You Make (2)

Imagine you’re at a dinner party, and someone hands you their credit card to pay the bill.“Buy whatever you think is best,” they tell you. Sounds crazy, right? Yet, many people treat their money this way, trusting financial advisors, brokers, or even well-meaning friends.

1. Take Care About Your Money (1)

Suze Orman, the author of The 9 Steps to Financial Freedom , warns against this practice. She explains how tapping into your investments can disrupt the compound effect. And it will rob you of your potential growth.Build a financial cushion instead (more on that next). Keep your investments untouchable. And only use them when you think you grew them enough.

4. Never Borrow From Your Saving Funds (2)

Warren Buffett famously said:Never depend on a single income. Make investments to create a second source.But nobody wants you to follow his advice without understanding it.Take care of your money. Educate yourself to manage them at your best. Read books like The Intelligent Investor by Benjamin Graham or Rich Dad Poor Dad by Robert Kiyosaki . These classics will give you the foundation to make smart, informed choices with your hard-earned cash.

1. Take Care About Your Money (2)

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Next Steps

Some people spend years building a solid portfolio. And then, at the first setback, they’re tempted to dip into those funds and sell everything.Don’t do it. When you borrow from your investment accounts, you steal from your future self.

4. Never Borrow From Your Saving Funds (1)

So, make sure to be prepared. Don’t let life’s surprises derail your financial plans. Start small if you must, but start today.The emergency fund was the first thing I removed from my to-do list once I got a job. It’s only three months long, for now. I’ve been using my money to create an investment portfolio. But I would like to push it up to six months of income, which is always safer.

5. Always Have an Emergency Fund (2)

You're reading an excerpt from<a href="https://cosmopolitanmindset.substack.com/"> The Challenge</a> — a weekly newsletter dedicated to self-improvement, goal-setting, habits, time management, and health tips.Every week, you'll receive:<ul><li class="ql-align-justify">A life-enhancing challenge</li><li class="ql-align-justify">A custom infographic to track your progress</li></ul><a href="https://cosmopolitanmindset.substack.com/subscribe">Subscribe now </a>and start your first challenge.

The Challenge

What’s the first thing you pay when you get your paycheck?Your landlord? The credit card company? Or maybe you reward yourself for the job you have done in your favorite coffee shop?The answer is you.

2. Always Pay Yourself First (1)

Books like The Little Book of Common Sense Investing emphasize the importance of slow and steady growth. Successful investing isn’t about being flashy. It is about being consistent and patient. I invested my first $5k before the pandemic. It was a long-term project. So, I kept investing even after the market crash due to the pandemic. And today, four years later, my wallet is above 17%.

3. Use Boring Investment Strategies (2)

Overspending is the main enemy of a healthy financial plan. Credit cards, after all, make it deceptively easy to live beyond your means. They are comfortable. But they make you forget about the money you can spend.So, how do you spend less (or not too much, at least)?

6. Never Spend More Than You Make (1)

Day-trading stocks and cryptocurrency are hot topics. The idea of investing in those things makes hearts race. But exciting investments often lead to exciting losses, too. John C. Bogle, the founder of Vanguard, advocated for boring but effective index funds. His mantra?“Don’t look for the needle in the haystack. Just buy the haystack!”

3. Use Boring Investment Strategies (1)

George S. Clason popularizes paying yourself first in The Richest Man in Babylon . But what does this mean?It’s simple. Save a portion of your income before paying any bills. Treat it like a non-negotiable expense.Why? Because if you don’t, you’ll always find other expenses to eat up your money. And, by the end of the month, you will have saved nothing.Your future self — living in a paid-off home with a cushy retirement fund — will thank you for this simple habit.

2. Always Pay Yourself First (2)

I’ve made my fair share of money mistakes.I spent half my paycheck on shiny, trendy, and unnecessary things. The first time I had some money, I boasted with my friends and spent everything on fancy dinners and alcohol. I even bought stuff I couldn’t afford and had to ask my parents for money.But I learned from my mistakes. And I knew that building health isn’t about luck or stumbling upon a jackpot. It’s about discipline, strategy, and following a few timeless money rules.f

Making Money Mistakes

Life has a funny way of throwing curveballs — a sudden medical bill, a leaky roof, or an unexpected job loss. Without an emergency fund, you’re just one crisis away from financial disaster.In The Total Money Makeover, Dave Ramsey stresses the importance of saving three to six months of living expenses in an emergency fund. He likens it to an insurance policy against Murphy’s Law: If something can go wrong, it will.

5. Always Have an Emergency Fund (1)

Building wealth isn’t about quick wins or cutting corners. It’s about patience, discipline, and following the rules. These seven principles are your toolkit, but it’s up to you to use them.This week, take 15 minutes each day to evaluate your financial habits. Use the infographic to rate your commitment to each rule and identify possible improvements.By the end of the week, you’ll have a clearer picture of your financial strengths and areas for growth. Small, consistent changes now can lead to massive results later. Are you ready to take charge?[DOWNLOAD THE FREE INFOGRAPHIC <a href="https://cosmopolitanmindset.substack.com/p/7-money-rules-you-should-never-break">HERE</a>]

Personal finance is a growing process. And the strategies that worked 50 years ago might not work today. So keep learning.Besides the books I already mentioned, there’s one last book I would like to suggest — Money: Master the Game by Tony Robbins. It helped me set up my plan for financial freedom. And I’m sure it will help you manage your finances better.Whether attending webinars, listening to podcasts, or reading articles like this one (good start!), commit to lifelong learning. The more you know, the better equipped you’ll be to make wise financial choices.

7. Always Keep Learning About Money

7 Money Rules You Should Never Break to Build Wealth: Proven Tips from Warren Buffett, Dave Ramsey, and Other Financial Legends