1. Investing is more important than saving.
2. Don’t work for the sake of money. Concentrate on making your money work for you.
3. Transform your active/working income into passive income. Passive income is income derived from your own assets.
4. Instead of saying, “I can’t afford it,” say, “How can I afford it?”
5. Never make a purchase on credit. You can’t afford it if you can’t pay cash for it.
6. Always keep an emergency fund of at least 5% of your gross income on hand.
7. Pay yourself first; you are entitled to 10% of everything you earn.
8. Understand the distinction between good and bad debt. Bad debt takes money out of your pocket, while good debt puts money in your pocket.
9. An asset is a financial asset that puts money in your pocket. A liability depletes your bank account. Invest your funds in assets.
10. Make it a priority to improve your financial literacy. 9 times out of 10, financial literacy is learned on one’s own. It isn’t covered in school.