Making money is simple but NOT easy.

Everyone, it is said, dreams of one day becoming financially independent. After all, you only have one life to live, and I’m sure you want to make the most of it. Regrettably, not everyone has the opportunity to become wealthy. Since there are many articles that explain what is needed and how to acquire money, let’s have a look at the top 10 money principles that can turn anyone into a MILLIONAIRE.

1| Pay yourself first

With every paycheck, start with putting money into savings.

First action every single time.

Manual works great; automated is better.

READ MORE: How to make money on Fiverr the easy way (No skills are required)

2| Keep a 6-month emergency fund

With multiple income streams, you can go down to 3 months.

Starting as an entrepreneur, 12 months is wise.

3| Budget by using the 50/30/20 rule

Budget your money effectively, simply and sustainably.

• 50% – needs
• 30% – wants
• 20% – savings/investments

This is the starting point!

My budget management:

• 40% – needs
• 15% – wants
• 45% – savings/investments

4| Divide your bonus by using the 33% rule

• 33% – yourself
• 33% – retirement
• 33% – debt pay down

5| Transform your raises into savings or investments

Upgrade your net worth, not your lifestyle.

6| Keep your home payments under 25% of your income

Think about:

• Mortgage
• Interest
• Insurance

Never overplay your hand.

7| Aim for a net worth that is equal to your age x Pre-Tax /10


Age 29
Annual income $70,000
Net worth $203,000 (29 x 70,000 / 10)

8| Minimize monthly lease and credit card payments

Car – $1,000
Credit card – $2,500
Monthly costs – $3,500

Prioritize buying with cash. This lowers risks and increases your budget for building wealth.

This is how you can achieve 45% in savings and investments.

9| Use Index fund compounding to build wealth

The stock market has an average long-term return of 10%.

For example:

If you invest $200/month in an S&P500 Index for the next 40 years, your net worth would be 1.1 MILLION.

10| Have a ‘before I buy’ strategy

Before spending any money on ‘wants’, first, do these 2 things:

1. Wait 24 hours
2. Ask yourself: Do I still want it?

If you still want it, buy it. This habit will eliminate impulsive purchases.

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