7 Rules that will make you Richer

Here are 7 rules that will make you happier, richer and would enable you to have a better career.

[1] 80/20 rule:

• 20% directed effort gives you 80% results.
• Therefore, being a perfectionist doesn’t help in most cases.
• This is one of the central things they teach you in management consulting.

[2] 21-90 rule:

• Want to build a great habit? (let’s say reading)
• Then do it for 21 days. This would be your period of reluctance.
• Then follow it for 90 more days.

This would take you from: not really liking an activity to turning that activity into a habit (21 days) to somewhat enjoying it (90 days).

[3] 20-20 rule:

• To make 2 crore.
• You need to save and invest 20,000/month.
• With average NIFTY returns, you will hit this corpus.

A variant would be a 151515 rule, which means that if you invest 15K/month and grow it at 15% CAGR for 15 years, you will hit 1Cr.

[4] 70% income saving rule:

• If you could save 70%+ of your income.
• With no inflation in lifestyle (i.e you won’t run after a bigger car, house etc)
• And, if you do this for 10 years straight.

You are financially free. And, can technically stop working for money.

Is it tough? Of course, but a worthy target to keep in mind.

[5] Don’t boil the ocean rule:

• You can’t read every book and every article.
• So learn more from consuming less.
• With 1Million options for everything, this skill is going to become increasingly important to carve out a strong career.

[6] Create a safety net (always):
A. Financial safety net:

• Save 6X-12X of your yearly expense.

B. Career safety net:

• Build monetizable skills.
• For example, these days if you know video editing, you can easily make upto 50K per month (no degree required).

And, it doesn’t take an insane amount of time to learn. Safety nets allow you to take bigger and bolder risks.

[7] Enjoy the life rule (8-8-8 hours rule):-

Always make time for things you enjoy.

• The way we should save first and spend later.
• Similarly, we should live life first (ideally) and stress about it later. This 8-8-8 rule is great.
• Spend 8 hours on you+ family; 8 hours work and 8 hours sleep.

But, all this goes away, if you don’t pay your taxes on time.
Government levies heavy penalty.