10 Ways to Explain The Number 1 Rule to Financial Responsibility

February 2, 2008 by Nez
Filed under: Philosophy, Smarter View, UnCommon Sense 

There are thousands (or millions) of sites devoted to finances, financial responsibility, getting/staying out of debt. Visit any self-help section at your local bookstore and you’ll also find hundreds of books devoted to the same topic.

I thought I’d sum up what I’ve seen, read, and (for the most part) practice - the number one rule to financial responsibility. However, to write only one sentence seemed almost like…cheating. So, in the interest of verbosity, I did some more thinking on the subject. Here’s what I came up with:

  1. Earn More Than You Spend - the optimist version
  2. Spend Less Than What You Earn - the pessimist version
  3. Savings = Revenue - Expenses, where Expenses < Revenue - the mathematician’s version
  4. Net Income = Gross Income minus Total Expenses and Deductions (you did save those receipts, right?) - the accountant’s version
  5. Buy 1 less Cup of Coffee a week to save $20 a month - the conscientious Starbuck goer’s version
  6. Every month, pay into your retirement, then your bills, then whatever’s left is extra - the Financial Guru’s version
  7. Every month, pay into your retirement, then your bills, then half of what’s left can go into the “games” - the Reformed Gambler’s version
  8. Every month, pay into your retirement, bills, and then buy ONLY one pair of shoes (that costs less than what you have remaining) - the compulsive shoe buyer’s version
  9. Every day, save a dollar, spend the rest - the homeless person’s version
  10. When you see a 10 dollar bill on the ground, DON’T pick it up - the Bill Gate’s version

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Other posts you may enjoy:

  1. Who Are the Gamblers?
  2. A Simple Truth about Wealth

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Comments

3 Comments on 10 Ways to Explain The Number 1 Rule to Financial Responsibility

  1. Catherine L on Sat, 2nd Feb 2008 12:58 pm

    2. Hi Nez - this is hilarious - but also a true picture of how many different people think of money.

    I must admit - I have a bit of a handbag addiction. But, last year, I put a curb on it, due to starting a different business and I’m proud to admit that I didn’t buy a single one.

  2. Barbara on Sat, 2nd Feb 2008 1:30 pm

    3. Nez,

    This is great! I love how you looked at it from all angles. Like Catherine, I too, have a handbag addiction. (Is this a 12 step program?), but refrain from buying one unless it really “makes my heart sing”. Fortunately, I haven’t found any of those recently. It helps when I stay away from the handbag sections of stores, or just don’t go shopping at all. Being aware of your weaknesses helps, as does concentrating on saving.

  3. Barbara on Sun, 3rd Feb 2008 1:14 am

    4. Hi Nez,

    This comment is off subject, but I had to come by and see your new theme. It looks good, and is easy to navigate. Your tag cloud is a nice addition (I still haven’t decided if I want one, and if they help).

    Your subscribe button is strategically placed, so much so, I have subscribed to your blog. It will be a real pleasure for me to watch you as you proceed through blogosphere.

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