10 Easy-to-Follow Money Rules to Improve Your Financial Health


Ramit’s 10 Money Rules

1. Always Have One Year of Emergency funds in Cash


22 million jobs were lost during the Covid-19 pandemic in 2020. Careers ended in the blink of an eye. Unfortunately, many people found themselves unprepared for such an event. While grim, this serves as a valuable lesson. When times are good, work hard and fast to put away a year’s worth of emergency funds. This one action alone will alleviate much of the angst you feel when thinking about money. Learn more about creating an emergency fund here.

wallet with phone and money

10 Easy-to-Follow Money Rules to Improve Your Financial Health

If this seems extreme to you, adjust it. Make your #1 rule: Always have six months of emergency funds available. Remember, these are your rules to live by, not mine.


2. Save 10% and invest 20% of your gross Income


When you’re beginning to save, your emergency fund is the place to start. Once that is built up, you can move on to a high-yield savings account. For me, this is a personal commitment to my future. 10 Easy-to-Follow Money Rules to Improve Your Financial Health I suggest you have a portion of every paycheck automatically directed to this account, sight unseen. Read my post on the best savings accounts to help you choose the best option.


Not ready to invest that amount of money? That’s OK. Maybe your money rule can be: invest 5% and save 10% of your gross annual income. Or invest nothing at all right now. You can watch this YouTube video for more tips on what you should do with your extra money:

3. Pay Cash for Large Expenses (engagement ring, dream trips, weddings) and 20% Down, Minimum, on a House

Let’s put it this way: ditch the plastic. 10 Easy-to-Follow Money Rules to Improve Your Financial Health To build good financial health, it’s important not to carry large amounts of debt where interest accrues. Many people fall into the credit card trap, thinking they can just pay it off. But then something comes up—perhaps a trip to the emergency room—and that plan goes out the window. One of my keys to saving money is spending what you have only when you have it. Learn more about making expensive purchases by reading my in-depth guide.

4. Never Question Spending Money on Books, Appetizers, Health, or Donating to a Friend’s Charity Fundraiser

I love reading books and am always anxious to learn something new. That’s why I made ‘Ramit’s book-buying rule, which allows me to buy any book I find interesting. That’s my thing. You might have something that is so important to you that you aren’t depriving yourself of something you love. Perhaps choose a few things that make you happy and fill you up, then form your rule around those.

Love gardening? Your rule #4 might look like this: Never question spending money on gardening supplies, flowers, sunblock, and manicures.


5. Business Class on Flights Over 4 hours

It is a luxury, sure, but I travel a lot, and this is important to help me stay motivated and comfortable. Having a bigger seat and more space ensures I arrive at my destination feeling rested and energized.

This may also be non-negotiable for you, or it may not even be close to your money rules list. For me, I indulge every now and then when it comes to comfort.

6. Buy the best and keep it for as long as possible.


Sometimes buying cheap ends up being expensive, and spending a little (or a lot) more for quality saves money in the end. For example, I enjoy buying high-end electronics because they last longer, clothes because they don’t tear or rip as easily, and cameras for their reliability. Some of these items can be passed on for generations. It might not be a bad rule to adopt it as your own.

The world wants you to be vanilla, but you don’t have to take the same path as everyone else. How would it look if you designed a rich life on your own terms? Take our quiz and find out:

7. No Limit on Spending on Health or Education

Health and education truly are rewards that keep on giving. If you spend money on an online course that helps you learn data visualization, you now have a new skill you can sell as a data consultant.

10 Easy-to-Follow Money Rules to Improve Your Financial Health

Those few extra sessions with your trainer at the gym will make you feel good about yourself, energizing you, motivating you, and perhaps even inspiring you to think more creatively on a project or with a particular client.

10 Easy-to-Follow Money Rules to Improve Your Financial Health

The ‘no limit’ part of this rule might scare you, so perhaps a cap of $100/month on fitness classes and $10,000/year on education. Whatever makes sense to you.

8. Earn Enough to Work Only with People You Respect and Like

I refuse to wake up in the morning, not looking forward to my day and future interactions. For me, kindness, respect, and trust are of the utmost importance when it comes to people I hire and work with. This might be one of those aha moments for you, too. If you find yourself miserable because you dread going to work each day because your boss is unkind, you might implement a rule like this.

9. Prioritize Time Outside the Spreadsheet

Money rules are more than just figuring out how to put money in the bank and following your budgeting spreadsheet; they are also about creating the life you want to live. 10 Easy-to-Follow Money Rules to Improve Your Financial Health Your money rules might want to ensure that once everything is running smoothly according to your plan, you’re prioritizing family, loved ones, and your health.

10. Marry the Right Person

Whether you like to believe it or not, money is a big part of a relationship. People have grown up with different money values and can see them very differently. Listen to episode 115 of my podcast to see how years of negative communication patterns around money can impact your marriage:

10 Easy-to-Follow Money Rules to Improve Your Financial Health To avoid any conflict down the road, I made a commitment to be in alignment with Cassandra’s own money rules.



Have you noticed that my rules are more about saying yes than saying no? It’s not about depriving yourself of little luxuries. Your money rules are just as much about investing in yourself, especially when that investment can help you make even more money. There are no limits on earning potential. However, there is a limit to how much you can cut.

10 Easy-to-Follow Money Rules to Improve Your Financial Health


Remember, these are your rules, catered to your unique interests, abilities, and lifestyle. 10 Easy-to-Follow Money Rules to Improve Your Financial Health And it’s OK to fall off the wagon and make mistakes. But always keep in mind that the real mistake is doing nothing. Anyone can make smart financial decisions with a solid, personalized plan that works for them.



Want to dive deeper into my 10 money rules? I break it all down for you in this YouTube video about Money Rules:

Frequently Asked Questions on Money Rules:

Why is financial well-being important?

Financial well-being has been described as being your ‘second brain.’ This is because the financial stressors we deal with, such as money and banking, can have a major impact on our overall health and well-being. 10 Easy-to-Follow Money Rules to Improve Your Financial Health People who experience financial well-being are less stressed about money, and this, in turn, has positive effects on their overall mental and physical health and on their relationships.

What is financial literacy?

Financial literacy is the foundation of your relationship with money. It’s a lifelong journey of learning and discovering how you can best manage and spend your money. Read my existing post to learn more about financial literacy.

If you liked this post, you’d LOVE our Ultimate Guide to Personal Finance

It’s one of the best things we’ve published and totally free; just tell us where to send it:

Leave a Comment

Your email address will not be published. Required fields are marked *