Financial Fitness Principles
Welcome to the world of Financial Fitness, where the elusive and often challenging mystery of acquiring, preserving, and growing wealth is decoded. In "The Money Thing," authors Chris Brady and Orrin Woodward share insights and principles that pave the way for a financially fit life. Explore the 47 principles of Financial Fitness to empower yourself and transform your financial journey.
Basics
Principle 1: Pay Yourself First
It's not about what you make but what you keep that determines financial success. Prioritize savings and cultivate the habit of paying yourself first.
Principle 2: Stewardship of Money
Money is a gift with a specific purpose. Exercise stewardship by using your money for matters that truly make a difference for your family and beyond.
Principle 3: Live Within Your Means
Adopt a budget and live within your means consistently. Give each spouse a small allowance to enjoy discretionary spending without nitpicking.
Principle 4: Seek Advice Wisely
Avoid financial advice from those who are financially struggling. Seek guidance from individuals whose financial success you aspire to emulate.
Principle 5: Budget for the Unexpected
Consistently budget and save for unexpected expenses to ensure financial stability.
Principle 6: Tithing and Giving
Allocate 10% of your income to tithing. Giving, even during financial challenges, fosters an abundance mindset.
Principle 7: Serve and Bless Others
Using your time, money, and talents to help others increases happiness and puts financial worries in perspective.
Offense
Principle 8: Money-View Discipline
Discipline yourself to live financial fitness principles, make decisions based on a long-term vision, and practice delayed gratification.
Principle 9: Continuous Investment in Yourself
Financially fit individuals invest in their education, skills, and experience to stay ahead.
Principle 10: Excellence in Current Endeavors
Excel in current projects while investing in personal development for a successful long-term vision.
Principle 11: Integrity Over Money
Never sacrifice principles for money or possessions. Maintain honesty and integrity in all financial dealings.
Principle 12: Mastery through Work
Work towards mastery in your field through continuous effort.
Principle 13: Purposeful Decision-Making
Ask meaningful questions before making purchases. Cultivate the habit of saying "No" to unnecessary expenses.
Principle 14: Habit Analysis
Analyze and cultivate good habits while breaking bad ones to achieve life dreams.
Principle 15: Ownership of a Business
Own a business, even part-time, to accelerate wealth-building.
Principle 16: Passive Income Mastery
Focus on increasing passive income to achieve financial freedom.
Principle 17: Redefining Retirement
Retire based on having enough passive income, not age.
Principle 18: Focused Financial Success
Focus on excellence in your current job, start a business, gain mastery, achieve financial freedom, and align your work with your life purpose.
Principle 19: Mentorship
Seek guidance from mentors and value their advice.
Principle 20: Productive Use of Money
Invest money in yourself and your business for optimal returns.
Principle 21: Preparedness for Worst-Case Scenarios
Allocate funds for potential worst-case scenarios.
Principle 22: Targeted Savings
Build a targeted savings fund for future purchases and buy with cash.
Principle 23: Prudent Investment
Invest only money you can afford to lose entirely in areas of expertise.
Principle 24: Avoid Using Savings for Speculation
Savings should not be used for speculative ventures.
Defense
Principle 25: Debt Elimination
Eliminate debt to achieve financial soundness.
Principle 26: Caution with Business Debt
Avoid business debt if not financially sound.
Principle 27: Credit Card Caution
Avoid using credit cards to build credit, as it often leads to more debt.
Principle 28: Steer Clear of Debt Schemes
Avoid title pawning, payday loans, and other debt schemes.
Principle 29: Sensible Car Ownership
View cars as transportation, not status symbols. Save and pay cash for them.
Principle 30: Prefer Debit and Cash
Use debit cards or cash over credit cards.
Principle 31: Financial Education for Children
Teach children financial principles and set a positive example.
Principle 32: Caution with Second Mortgages
Avoid second mortgages if not financially wealthy.
Principle 33: Roll-Down Method for Debt
Utilize the roll-down method to pay off credit card debts and other obligations.
Principle 34: Skepticism Towards Marketing
Be skeptical of advertising and marketing; make informed financial decisions.
Principle 35: Accumulate Wisdom, Not Stuff
Build wisdom and resources over material possessions.
Principle 36: Holistic Approach to Life
Integrate true principles into all aspects of life, including finances.
Principle 37: Eliminate Consumer Debt
Avoid consumer debt; focus on wise financing for business investments.
Principle 38: Budget for Memories
Incorporate memories into your lifestyle and budget.
Principle 39: Careful Decision-Making
Exercise caution in decisions related to taxes, home ownership, divorce, credit cards, lawsuits, insurance, seeking status, college, addictions, and investments.
Principle 40: Adherence to the 2X Rule
Follow the 2X Rule when buying a home, ensuring it aligns with your income.
Playing Field
Principle 42: Study of Free Enterprise
Understand free enterprise as a vital aspect of financial fitness.
Principle 43: Awareness of Freedom Principles
Stay informed about freedom principles and government actions that impact prosperity.
Principle 44: Diversification of Savings
Diversify savings beyond fiat currency for security.
Principle 45: Informed Investments
Thoroughly research investments, including metals, before making decisions.
Principle 46: Personal Development Investment
Invest in personal development for a life filled with enterprise, action, and purpose.
Principle 47: Economic Awareness
Study and prepare for potential economic downturns by understanding the strengths and weaknesses of your nation's economy.
Embark on your journey to financial fitness by applying these principles and shaping a prosperous future for yourself and your loved ones. Remember, financial success is achievable through knowledge, discipline, and strategic action.