10 Common Money Rules

Rule 1

Never borrow money that accrues interest to start a business. That is to say, never borrow money to start a business expecting that the business will generate income to pay back the borrowed money plus the interest.

Rule 2

Never spend money you haven’t earned. Don't even promise someone money based on a promise you have from someone else. Don’t borrow money expecting to pay back once you are paid/given the promised money, as most times the promises will not come as promised.

Rule 3

If you want to save, whenever you receive money don’t start spending hoping that you’ll save what remains.

This is Warren Buffet’s rule: Do not save what is left after spending, instead spend what is left after saving.

Rule 4

Do not keep your seed, plant it! Many people stop at saving. It is very difficult to save enough money for your needs. Savings are a seed, so plant it. If you keep the seeds, they begin to wither(eaten up by inflation, transaction costs etc).

Rule 5

Never lend someone money you are not willing to lose. Actually, only lend money you can afford to lose.

Rule 6

Avoid keeping the money you don't need within easy reach. For instance, if all you need for the day is Ksh 500, do not walk around with Ksh. 2000. You will end up spending on things you could actually live decently without.

Rule 7

Avoid keeping money in inappropriate places eg socks, under the pillow, in a pit, in the bra, bag. Impulse buying is a devil that will keep you busy!

Rule 8

Do not spend money on items you can live without. I do not need to explain this.

Rule 9

Do not think about short term only and forget about the long term; and vice versa.

Rule 10

Do not pay more than the minimum price of anything. If you can get the same item elsewhere at a cheaper price, always go where the prices are minimum.