Money Rules: Simplifying Your Financial Decision-Making Process


Navigating the countless financial decisions we face each year can be overwhelming and stressful. To help cut through the noise and maintain focus on what truly matters, establishing a set of Money Rules can be invaluable. 

These guiding principles should be important and specific enough to be meaningful, assisting you in making informed and intentional choices that align with your financial goals and values.

Why Money Rules Matter

Money Rules serve as a compass for your financial decision-making, helping you stay on track and avoid potential pitfalls. By having a set of clear and specific principles in place, you can confidently make choices that support your long-term financial objectives, even amidst the myriad of options and distractions that arise. Furthermore, Money Rules can help minimize the stress and uncertainty that often accompany financial decisions, allowing you to approach your finances with a sense of clarity and control.

Creating Your Money Rules

When establishing your Money Rules, it’s essential to focus on aspects of your financial life that are both important and specific enough to guide your decision-making effectively. To create meaningful Money Rules, consider the following steps:

Reflect on your financial goals and values: Start by identifying your long-term financial objectives and the values that underpin them. This may include saving for retirement, funding your children’s education, or investing in experiences that enrich your life.

Identify key areas of decision-making: Determine the most crucial aspects of your financial life where you need guidance and structure. This may include budgeting, saving, investing, or managing debt.

Develop specific, actionable rules: For each key area you’ve identified, create a set of specific, actionable rules that will help you make consistent, value-aligned decisions. Ensure that these rules are practical and straightforward, so you can easily implement them in your daily life.

Examples of Money Rules

To provide some inspiration, here are a few examples of Money Rules that you might consider implementing:

  • Budgeting Rule: Allocate a specific percentage of your income to needs, wants, and savings. For example, you might adopt the 50/30/20 rule, which involves dedicating 50% of your income to essential expenses, 30% to discretionary spending, and 20% to savings and investments.
  • Saving Rule: Establish an emergency fund with 3-6 months’ worth of living expenses and commit to contributing a set amount or percentage of your income to this fund each month.
  • Investing Rule: Automatically invest a specific percentage of your income into low-cost, diversified index funds or ETFs each month, regardless of market conditions.
  • Debt Management Rule: Prioritize paying off high-interest debt first, while also ensuring you make at least the minimum payments on all other debts.
  • Value-Based Spending Rule: Allocate a specific portion of your budget to the experiences and items that align with your values, such as travel, charitable giving, or hobbies.


Establishing a set of Money Rules can be a powerful tool for simplifying your financial decision-making process and ensuring that your choices align with your goals and values. By focusing on important and specific aspects of your financial life, you can create a set of guiding principles that help you navigate the complexities of personal finance with confidence and clarity. 

Ultimately, adopting Money Rules can lead to greater financial stability and fulfillment, allowing you to make the most of your resources and live a life that aligns with your deepest aspirations.