10 Universal Laws of Money

Rules for Financial Success

Financial success doesnt happen by chance, and

wealth building is driven by more than simply
saving and investing money. The process is governed by a series of laws and some rules within
those laws. While some are philosophical and some
are more concrete, the more of these you follow, the
better your chance for financial success and reaching your retirement goals.
Use this as a diagnostic tool for your financial success. At the end of each section, honestly rank each
question on a scale of 1 to 5. (In each case, 5 means
that you strongly agree, and 1 means you strongly
disagree.)
Law One: THE LAW OF EXPECTATION

All individuals have a potential for prosperity and

financial freedom when they expect and plan for
them.
This philosophical law is simply summarized: You
dont always get what you want in life, but you
always get what you expect! Its a self-fulfilling
prophecy, and your expectations about money
apply. The way you think about money and your
attitude about money determine your financial
future.

Self-assessment

Do you have a positive attitude about money?

*Your score (1-5): ____

Law Two: THE LAW OF COMMITMENT

Money is a trust that we must choose to manage
wisely, productively, and honorably for our own
good, for our families, and for others.
What is the purpose of money in your life? Many
people never stop to think about that question, or

they view it only in terms of purchasing goals. As

with any trust, it must be managed to achieve the
designated outcome. You are the beneficiary of your
income, and you are responsible to use it to meet
your needs; no one else will do that for you.
This responsibility means not squandering money
on useless things, but rather protecting your
capital, including building sufficient reserves for
emergencies, planning for retirement, and properly
caring for the assets in which you have invested
such as your home.

Self-assessment

Do you feel you are responsible with your money occasionally (1), most of the time (3), every dollar (5)?
*Your score (1-5): ____

Law Three: THE LAW OF CONTROL

While each of us has a potential to live prosperously
in constructive control of our financial affairs, this
potential becomes a reality only when we live in harmony with proven principles of financial success.
Achieving financial success is impossible without
being in control of your money. In order to do that,
you must live in harmony with three known money
basics:
Money Basic #1: Money Consciousness
You must be aware of the financial implications of every decision you make. Considering cost should be routine, automatic and
natural in making every decision, every day
no matter if the expense is large or small.
Money Basic #2: Live on Less Than You
Make Define exactly what you need to live
on, and dispense no more.
Money Basic #3: The Opposite of Spending

Is Consider your savings payment as

you do your mortgage payment or rent. View
it as a necessity and make the payment
religiously.
Wealth Accumulation Rule: Pay yourself first,
not the piper.
Wealth Accumulation Rule: Save for a rainy
day. Have an emergency fund.

Self-assessment

Do you consider every cost, live on less than you earn,

pay yourself first and have an emergency fund?
*Your score (1-5): ____

Law Four: THE LAW OF MANAGEMENT

Asserting control over our financial lives requires us
to manage our personal finances as we would those
of any important business, utilizing basic management skills such as goal setting, planning, organizing, record keeping, allocating resources, evaluating, and decision making.
If you were the CFO of a company, you would have
no trouble remembering that your priority is to the
health and prosperity of the company. In reality,
you are the CFO of a very important company: You,
Inc. You must acquire and adhere to four money
management skills:
Money Management Skill #1: Set clear
goals.
What are your money goals?
o Earnings goals
o Savings goals
o Vacation goals (or similar discretionary spending)
o Retirement goals
Money Management Skill #2: Precise
Plans
Goals setting is the first step, and planning makes goal achievement possible.
Consider the investment of time and
money involved in your plans and ask
this very personal question: Is it worth
it to me? Answering honestly helps
you eliminate regret and make better
choices.
Money Management Skill #3:
Organization
Proper organization reduces the
amount of work required. Good organization doesnt take time; it makes time.
As the president and CEO of You, Inc.,
you have absolute authority to choose
the best organizational procedures for

you own money management, and all

else being equal, simple is best.
Money Management Skill #4: Record
Keeping
While tax filing looks backward, you
must be focused on today and tomorrow. Keep your financial records up-todate and easy to access at all times.
Financial Success Rule of Vision: Set specific
goals and measure each quantitatively.
Financial Success Rule of Sufficiency: Create a
plan that is capable of the result.

Self-assessment

Do you feel you have clear goals, plans to meet those

goals, and an organizational and record-keeping system
that enhances your ability to meet your goals?
*Your score (1-5): ____

Law Five: THE LAW OF FINANCIAL

FREEDOM
Financial independence is not generated by temporary levels of wealth or income but by setting correct priorities, exercising self-discipline in financial
decisions, living debt free, effectively managing
resources, and claiming it as an emotional and
mental attitude.
A particular amount of money or income level does
not define financial freedom. A person earning
$50,000 can have as much financial freedom as one
earning $500,000. Financial independence comes
from being free of the limitations you experience
because of financial entanglements.
1st Key to Financial Freedom: Set
Priorities
Choose to save rather than choosing to
spend. Without saving, financial success
is impossible; with it, success is almost
inevitable.
2nd Key to Financial Freedom: Selfdiscipline
Delay spending. There are many benefits:
o
o
o
o

Not all impulses reflect real needs

or desires.
Buying later provides opportunity
for research and to buy more intelligently.
Alternative products or sources
may offer better value.
You will feel more in control when
you spend intentionally rather than
impulsively.

Youll avoid a lot of stupid mistakes

with your money.
3rd Key to Financial Freedom: Living
Debt Free
Despise debt like the enemy it is. People
without debt get to save and invest more.
Change your attitude about debt and determine to eliminate it You will revolutionize
your life.
4th Key to Financial Freedom: Manage
Resources
Tracking your income, expenses and obligations is the beginning. Ensuring your
money is being used where/as it should is
the middle. Evaluating results, making
decisions about the future, and guiding your
financial situation toward your goal is the
end.
5th Key to Financial Freedom: Attitude
of Freedom
Claim financial freedom as your personal
and emotional attitude. If you have all the
money you need to meet your necessary expenses, if you know how and remain firmly
committed to avoiding any unwanted financial obligations, and if you have more than
enough money to do the things you really
value in life, why shouldnt you feel a sense
of freedom no matter the absolute level of
your resources?
Here is an important concept to consider: Many
financial advisors promote the irrational idea that
financial independence means being able to do
anything you want, any time you want, without
regard for the cost. There are many high flyers in
the world, but clearly many of them are slaves to
their life styles and many of them have no sense of
happiness and freedom.
o

Ask yourself what really makes you happy. The

truth is that most of what brings us joy takes no
money at all.
Financial independence primarily means being able
to live the life we choose, free from obligations we
cannot easily meet with or without what we normally call our job.

Self-assessment

Do you feel you have financial priorities and self-discipline, well-managed resources, the ability to live debt
free, and true financial freedom in that you are not a
slave to your lifestyle?
*Your score (1-5): ____

Law Six: THE LAW OF PRODUCTIVITY

Each of us prospers in proportion to our productivity as we increase our moneymaking skills and direct
them toward long-term personal benefits.
Our time is worth nothing. Only what we do with
our time matters. If you want to get more money
for your work and increase your income, improve
your productivity.
Get more done. Increasing productivity in a business increases profitability; increasing productivity
at You, Inc. must also be your focus.
Financial Success Rule of Skill: The ability to
effectively use the knowledge that is available. Its
not what you know; it is how you use what you
know. Put to use what you know and make it productive.

Self-assessment

Do you feel you are getting sufficient information and

putting it to use in a productive and useful way?
*Your score (1-5): ____

Law Seven: THE LAW OF SELF DISCIPLINE

Prosperous people do honest work for their money,
expect fair compensation for their work, and understand how money works in the real world.
Self-discipline recognizes the fact that successful people accept the fact that they are personally
responsible for the course of their lives. They have
no time for the blame game. Consider the source of
your information. It is your responsibility to act on
correct information.
Financial Success Rule of Will: The ability to
put effort against the work and tasks needed to
achieve your goal.

Self-assessment

Do you feel you take full responsibility for your success

(and failure) and are willing to do whats needed to meet
your goals?
*Your score (1-5): ____

Law Eight: THE LAW OF ENTHUSIASM

Becoming a productive, effective, and prosperous
person can and should be a lot of fun.
Heres a must-read: a little book entitled, Money is
My Friend, by Phil Laut. In it you will learn how to
develop a light-hearted attitude and sense of selfreliance about your finances.
How can you make money fun?
Make money fun by accepting responsibility.

 Make money fun by focusing on financial

goals.
Make money fun by celebrating financial
achievements.
Make money fun by acknowledging your
success.
Every individual can become successful with and
learn to enjoy money if they will just decide to learn
how.

Self-assessment

on what you value, and keep your eye on life not

on material prosperity.
Wealth Accumulation Rule: Stiff the tax collector if you get a windfall refund, youre overpaying
taxes and giving the government an interest free
loan.
Wealth Accumulation Rule: When investing,
match your asset mix to your investment personality and tolerance for risk. Dont involve emotion in
your investment decisions.
Wealth Accumulation Rule: Diversity reduces
adversity.

Do you feel your attitude and perceptions on managing

your money are fun and positive?
*Your score (1-5): ____

Self-assessment

Law Nine: THE LAW OF PATIENT

PERSISTENCE
Success with money requires persistence and patience as much as it does knowledge and skill.

Final Score:

Patient persistence is underscored by the magic of

compound interest, and that is really the magic of
delayed gratification.
A common success factor is how far people plan
into the future, and theres good news: Persistence
and patience are not mysterious qualities that you
either have or dont have from birth. They are a
matter of choice, a choice anyone can make.
No matter what your goals are (start your own
business, pay off credit cards, eliminate your mortgage payment, retire at 65 or even 55), they will
require persistence and patience. You must begin.
And you must consistently work at rejecting instant
gratification in favor of delayed gratification in
order to achieve each goal. In the end it pays, and it
pays big time.
Financial Success Rule of Sustainability:
The ability to maintain the plan until your goal is
reached.
Self-assessment
Do you feel you have been patient and persistence in
working towards your goals in the past?
*Your score (1-5): ____

Law Ten: THE LAW OF TRUE WEALTH

Real prosperity is measured as much by how we use
our money as it is by how much we have.
Being wealthy or rich is a state of mind more than
material prosperity. Stay focused on lowering your
financial obligations to build wealth. Stay focused

Regardless of your material prosperity, do you feel are

you truly wealthy in the use of your money?
*Your score (1-5): ____

Average all your scores _____

If your score is:
5: Congratulations. You are abiding by the laws
and on your way to financial success.
4: Youre better than average, but with a little
work, you can achieve wealth.
3: You have work to do, and the time to get started
is now.
1-2: You have a lot of work to do, so get the help
you need to turn your life around.

Stephen E. Capizzi, CEPA, CFP

11175 Cicero Drive
Suite 100
Alpharetta, Georgia 30022
Phone: 678-242-5250
Fax: 678-242-5201
steve@cfaplanning.com
www.cfaplanning.com
The certification marks above are owned by Certified Financial Planner Board of Standards Inc. and are
awarded to the individuals who successfully complete CFP Boards inital and ongoing certification requirements.

Copyright 2012 CORE Financial Advisors, Inc.