How to Never Lack Money

Summary

• Live within your means; it's the foundational rule of money management.
• Always spend less than you earn; this simple practice can prevent you from ever needing money.
• Savings become redundant if you consistently spend less than your income.
• This principle is even more fundamental than investment rules like "don't lose money."
• Master the basics of budgeting before attempting advanced trading or investing tactics.
• Complicated financial strategies are less effective if you haven’t learned to balance your budget first.

Video

How To Take Action

I would suggest starting with the basics – live within your means. It sounds simple, but it's the most important rule in money management. To put this into practice, first track what you spend. Write down everything. This way, you see where your money goes.

Once you know that, make a budget. List your income and expenses. Make sure you plan to spend less than what you make. Stick to the budget like it's your job. This keeps you from spending money you don't have.

Don't worry about big investment strategies right now. Focus on saving by spending less first. When you're good at this, you won't even need to use your savings much because you're not running out of money.

A good way of doing this is cutting down on unnecessary expenses. Do you really need that daily coffee from the shop? Maybe make coffee at home. That's money you could save.

If you have extra stuff lying around your house, sell it. That can give you a little cushion so you're not living paycheck to paycheck.

If you need help, use budgeting apps. They can help you keep track of your money without spending hours on it.

Remember, this is not just about saving money. It's about making sure you're never in a tight spot needing money. That's peace of mind. And that comes first before trying to grow what you have through fancy investments. Start small, but start now. Stick to it, and you'll be setting up for bigger financial moves in the future.

Quotes by Alex Hormozi

"if you always spend less than you earn you will literally never need money"

– Alex Hormozi

"you would always spend less than you earn so you would never lack for money"

– Alex Hormozi

"it's rule number 1 2 3 4 5 6 7 8 9"

– Alex Hormozi

"rule number one is don't lose money rule number two is don't forget rule number one"

– Alex Hormozi

"rule zero is spend less than you earned"

– Alex Hormozi

Full Transcript

Charlie talked about living within your means a lot and it's such an obvious thing but if you had all the rules of money written in order you could follow just rule number one and never need money ever again which is if you always spend less than you earn you will literally never need money you wouldn't even need your savings because you would always spend less than you earn so you would never lack for money it's rule number 1 2 3 4 5 6 7 8 91 you can't even do investing where rule number one is don't lose money rule number two is don't forget rule number one well you couldn't do that unless you spent less than you earned and so like rule zero is spend less than you earned and what's crazy is that so many people are trying to find Advanced and complicated trading and investing tactics when they haven't even mastered balancing their budget