My Personal Finance Rules

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1. Budget less than 0.1% of net worth as daily spend

If your net worth is $100K, your daily budget for expenses is $100, AKA $36,500/year. It means you have 3 years of expenses saved at any time, and can't make silly purchases

2. Only buy business expenses that you can see a 10x ROI within 12 Months

If it's 3x ROI within 18 months, you've still won

It's like the margin of safety parable that Buffet uses

3. When you shop, say OUT LOUD what you'll buy

Helps save time and money when you explicitly state the objective of the shop

4. A job will make you a living, a business will make you a fortune

Act accordingly

5. A dollar saved is $1.50 earned

Taxes are heavy!

6. INVOICES

Don't pay the phantom tax, invoice right away!

If you invoice after, say, 1 month, both opportunity cost and inflation have eaten away 1-3% of your invoice total!

7. 2nd hand -> Cheap -> Hobby -> Pro -> Best

The order to buy things for your business/passion

Save money when you suck, gradually spend more

8. Make your time worth more

9. Give yourself a raise every Quarter

Save more, invest more, buy books, fix business, etc.

10. Give money to charity

You can't take it with you, secular tithing is a reminder

Jamesdentmusic