AdminI want you to think about this here in your entire lifetime,
How much money has gone through your hands?
How much?
Let me explain to you what I mean by this maybe you made $73,000 last year, at 28 years old and the first time you got a check was 14 years old, it was $100 add that whole thing up you’ll come out with a number $493,000. Or $1.9 million or $6.3 million, depending on who reads this article.
The question is this.
How much is left in your wallet? Truly.
What is in your wallet?
Not what’s in your wallet with Capitol Choice?
I’m talking about really, what’s in your wallet?
What do you have left?
How much savings do you have left?
And if you’re not too happy with this question, it’s very simple the reason why you don’t have a lot of money left is because you don’t know how to play the money game. Simple as that.
So today in this article I’m going to cover with you 20 rules of money.
These are rules of money that I’ve followed and it’s obviously from a lot of mistakes
I’ve made. Because there was a point in my life where I made money and there was nothing left in my pocket. So I’m telling you from experience.
1: It’s a Game:
But rule #1 is the most important one and it’s the one you have to buy into immediately.
Simply, you can fight and say whatever you want to do to it it’s a rule and the rule is, that it’s a game.
Money is a game and the great thing about any game is the following thing no matter what game you play, most eventually get good at it. If I’ve never played chess, and I play you and you’ve played 100 times chess, you’re probably going to beat me.
If I have played Monopoly 1,000 times and you’ve played three times, I’m probably going to beat you, because it’s a game. So the great thing about the money game is, it can be learned. So many times people fight it and they have problems with it and they say, well, you know, that person became rich because they’re smart. This person no
They learned the game, and you can also take the time to learn the game.
2: Don’t Be a Hater of Money:
Rule #2, don’t be a hater of money. If you hate money, you’ll never get money. Because money doesn’t like haters. So if you’re a hater, and you constantly say things like, well, money doesn’t grow on trees. Money is this and money is that, and rich people are this.
Money says, “You’re right!” I’m not turned on by you. It’s almost as if going on a date with an attractive girl and telling the girl that you don’t like attractive girls who don’t know a lot about philosophy and all they care about is their looks and doing makeup and doing this and working out and going to the gym.
This girl’s like, dude, I put makeup on, I work out every day to stay in shape. But I also like other things in my life. But you know what? You’re right. You’re not attracted to me; I don’t like you.
She goes and finds another guy who says,
I like a girl that takes care of her body.
I like a girl that takes care of her skin.
I like a girl who does makeup.
I like a girl that works out five days a week.
She’s attracted to that guy. Keep that part in mind. Don’t be a hater with money.
3: It’s a Doubles Game:
It’s a doubles game.
What is a double game?
The entire game of money is about doubling your money.
So what do you mean, double your money?
Let me explain it to you this way. If you right now have $1,000 in your bank account, if you’re reading this, and
You have $1,000 cash, you are 10 doubles away from a million dollars. That’s it. You’re five doubles away from having $32,000. You’re 13 doubles away from having $8.192 million. You’re 14 doubles away from $16 million. It’s a doubles game.
So how soon can you double your money?
That’s truly the game. Can you take that $1,000 and double it to $2,000 in the next year, so the next thing is, now it is $2,000 you have in your account, now you’re nine steps away from a million dollars.
You may say, I already have $100,000 in my account.
Well, guess what?
You’re 4 doubles, three doubles away from a million dollars. It’s a doubles game. This is a piece of cake when you learn it’s a doubles game. So the question becomes what?
How soon, this is the real game of doubles. It becomes two different things.
Risk tolerance, because you’ve got to know yourself when it comes to money. Your risk tolerance depends on the age you’re at. If you’re 65, your risk tolerance is going to be lower than you being 22 years old, right? So you have your risk tolerance, you need to know you.
Then the other part is the time horizon. What is your time horizon? So the time horizon could be, I want to have a million dollars by ten years from now. Great. If it’s 10 years, what do you have right now?
Then you have to play your doubles game. How many doubles do I have with this $17,000 to get to a million bucks?
It’s a simple game! That you can learn what to do, as long as you know your risk tolerance, you know your time horizon, what it is, and what the amount is, then you’re playing the doubles game.
4: Seduction:
Rule no 4 seduction. Let me explain to you about seduction. Listen I use the analogy with ladies because it’s just how it is. Money likes to be seduced. Money’s attracted to seducers.
Just like a woman doesn’t like a desperate man, money doesn’t like desperate people.
Money’s not attracted to desperate people who want it so badly because they want to make this money and show it off to everybody.
You need to seduce money Seduce money and all of a sudden money says, ooh, I like this guy. I like this girl. Oh my gosh! I’m turned on to you. Don’t let money seduce you.
You seduce money. It’s a seduction game.
So whoever learns the seduction game with money, all of a sudden money starts coming from all over the place to you, because money is turned on by people who know exactly what they’re doing.
Money likes investors who know what they’re doing. A girl goes on a date with a guy who knows what he’s doing, she’s most likely to come back and then there’s experience. To learn how to seduce money, once you learn this whole thing you’ll get better at this game as well.
5: Timing:
Next, timing, when it comes down to money. Let me explain about timing. I’m not talking about timing like this is the best time to invest in Snapchat or this is the best time to buy the IPO of Facebook, etc.
I’m not talking about that timing although that’s a whole different conversation with timing. Timing I’m talking about, running a business. I’ll give you an idea. There was a time when logically I had to cut down.
In my business, I had to get rid of two or three employees. Logically I had to cut down.
But I knew what I was getting ready to do and I had access to all the information I decided to double down and that helped expand the business to new areas, and new territories.
So, and then the other part is cutting down expenses, you know, maybe numbers are looking very good, but there’s an area that needs to be cut down that no one knows about the information. You need to cut down because you have access to all the information.
So there’s got to be a part where you need to know and this is the thing we can’t teach you. This is not something I can teach you about. But this is going to be a part of it, that you’re going to learn from experience with timing.
Timing with when you buy.
Timing on when you invest.
Timing on when you stay light.
Timing on when you stay liquid.
Timing on when you go.
There’s a timing aspect to all those decisions you’ll make.
7: Secret Account:
Next, secret account. You always have to have a secret account. Let me tell you what a secret account is. It’s an account that no one knows about – your wife, your husband, your boyfriend, girlfriend, mom, dad, brother, sister – no one knows about this account.
What is this account?
It’s a crisis account a crisis account could be cash a crisis account could be somewhere sitting down that no one knows. But I know you may say you talked about boredom.
Two completely different stories. You’ve got to have a crisis account, that’s not your emergency fund.
I’m not talking about emergency funds this is the right thing to do. I’m talking about a crisis account. What saved the business when we were going through a difficult time, and our company’s checking account went to $13,000? I had payroll, commissions, everything, $13,000. We were about to shut down the company.
It was this close. We’re about to shut down the company. What saved us was the crisis account that I had. No one knew about it. That money showed up, put it back into the business, saved us, we lasted, we made it through the tough times, and now we’re here where we are today. But it’s because I had a secret crisis account no one else knew about. You need to always have a secret crisis account.
8: Don’t Fly First Class:
Rule no 8, don’t fly first class until you have $10 million in the bank account. I see so many people spending two grand on a flight where they can spend $400. do you know how many times till today I’ve paid first class?
Zero!
I don’t pay first class. Other people pay for my first class, but I don’t pay for first class.
I’ve been paid first class, and flown first class many, many times because I have the miles or people pay for my flight. I don’t pay first class. And why is that? Here’s how I did the math.
Now obviously, I can afford to do it, no problem. But here’s how I did the math.
You’re trying to tell me that $2,000 for a first-class flight and I can get $500 for
the same flight, that $1500 times nine flights in a month, that’s 9 x $1500, is $13500, some a number like that.
Do you know what I can do with that number?
That’s four employees. That’s marketing. That’s expansion. Over a year that’s $200,000, $180,000.
Why am I going to waste that money?
That’s an executive I can bring in. That’s two incredible employees I can bring in.
I don’t pay first class. Other people pay first class. Once you get 10 million bucks and you want to do it, that’s great. At that point, you may want to get yourself a private jet, but don’t fly first class.
9: Comp Plan:
Next, comp plan. Let me explain to you what I mean by comp plan.
So, no matter what country you live in, okay, I get emails from 100 plus countries around the world and some of you guys and I talk through your communistic system, how you’re upset and you ask me what to do and I tell you if it’s not going to change, you have to leave.
You have to leave a communist regime you’re part of. Some of you are in socialistic places, France, taxes, Spain. You’re upset with the taxes being where they’re at, and I tell you, if you don’t see the horizon changing, you need to adjust. But regardless of where you’re at, rule #1 about your comp plan, your comp plan in whatever country you live in is your taxes. Study how you get taxed, because that’s your comp plan.
Let me explain to you why the comp plan in America does so well. A lot of people say things like this, they’ll say,
“You know what? I can’t believe the tax structure in America benefits business owners and you know why it that they benefit business owners?”
Because business owners create jobs. If you created jobs, we’d give you a tax benefit.
If there wasn’t a tax benefit and incentive for business owners, then who would create
Jobs for all these millions of people that need jobs?
So you may say,
“Well if the incentives are for business owners, shouldn’t I be a Business owner?”
Yes!
Every single episode is about you becoming an entrepreneur. Yes.
You ought to be a business owner.
You ought to be an entrepreneur.
Because it benefits you in your comp plan and positions yourself properly by knowing what your comp plan is.
10: End of the World Mentality:
Rule #10, end of the world mentality. Listen, CNN, MSNBC, Fox, Suze Orman, and Dave Ramsey, whatever these names you want to go through, all of these names put them all together.
Do you know what they get paid to do?
They get paid to sell crisis because if it happens, you’ve got to be ready for it. and so what happens a lot of times is people get afraid and they think it’s the end of the world.
And like when 2008 the market crisis took place, the market went all the way down to
6000 something, Dow Jones did, and everybody started pulling their money out. It’s at 21,000 points today.
Imagine if you left the money in. How much compounding money was lost, simply because you thought it was the end of the world?
Simply because you thought there was a nuclear war that was going to happen all over the world. By the way, let me explain to you if truly a nuclear war’s going to happen, do you think your money matters?
We’re not going to exist. so you’ve got to act as if there’s no nuclear war that’s going to take place and panic so much when everybody tells you everything, and you’ve got to learn how to manage those times when 90% of the world thinks it’s the end of the world, you’ve got to be ready.
So how do you do that?
Let me explain. I was part of the community that said it’s always the end of the world until I realized how you become wealthy during this time. During this time when it’s the end of the world, you know who wins? Those who have cash. This is why it’s important to have cash set aside.
I’m not talking about boredom money. I’m talking cash set aside when it’s the end of the world for you to buy stuff. Every time a crisis takes place, a lot of people become wealthy. A lot of people become wealthy.
Everything’s on sale when there’s a crisis People sell their exotics because they can’t afford it People sell their artwork for 1/5 of the price. Homes sell for 1/2 of the price.
Investments, all these things are for sale when there’s the end of the world type of mentality.
So you’ve got to have a strategy for this time. Some say markets about to tank again, in the next two to three years. I don’t know if it is going to tank in the next two to three years. Here’s what I do know. It’s going to tank in the next 20 years. I’m ready for it. And I have to be ready for it. Because there’s going to be opportunities. You also have to be ready for it.
11: Study Your Politicians:
Rule no 11, study your politicians, especially your president. Let me explain to you why.
You’ve got to know what the politicians in your local community are going to do and what their philosophies are. Here’s why you need to know their philosophies.
If their philosophy is to do heavy-duty taxing on you, you need to adjust accordingly.
If their philosophy is to cut down taxes, you need to adjust accordingly. People ask me, what am I going to do with Trump?
Start a business! Taxes are being cut. Go make millions of dollars in the next four years.
And if it’s eight years, go make your money. Adjust. Everything’s about adjustment.
But you can’t not know what their philosophies are. You need to know the philosophies of the politicians in your community.
12: Study Smart Investors:
Rule no 12, study smart investors but don’t be too religious about them. For instance, you ought to read everything Warren Buffett’s got read every single thing Warren Buffett’s got.
Every single thing. read any of the books he’s got, go read them. Because what he’s going to teach you is his way of thinking his mindset. He’s going to teach you the way he thinks. Some people ask, “Why did Warren Buffett spend $35 million to buy silver six years ago and why did he and why does not do any technology and stay away from it?
You know, why does he these are philosophies?
The thing you’ve got to respect about Warren Buffett is when he says,
“I don’t do technology,”
He didn’t do technology. So he stuck to a philosophy long enough until it worked. Study smart investors.
13: Play Your Game:
Rule no 13, play your game. Don’t compare. Let me explain. This is extremely problematic to a lot of people because let’s just say in this doubles game, you’re here with $8,000, and let’s just say your cousin is here with $4,096,000.
Why are you comparing yourself to him?
You need to play your doubles game. Let’s say you’re here $8,000 Let’s say your best friend is here for $128,000 It’s not the same game. He’s four doubles ahead of you.
It’s not the same game. You’ve just got to make sure to play your game.
You can’t say, “I’m going to play my game at the level with the other guys,” because when you do that way, you make reckless decisions and you lose a double.
You don’t want to lose doubles. You want to gain doubles. I hope I’m making sense to you. You don’t want to go backward and any time you focus on this guy people ahead of you you sometimes go backward.
So focus on your game.
Focus on your strategies.
Focus on your time horizon.
Focus on your risk tolerance, and play according to that game.
Your vision may not be to be a billionaire.
Your vision may not be to go out there and do something very big.
Your vision may not be to be a person that’s got $150 million bucks.
Your vision may not be to be a deca-millionaire.
Your vision may be, that I want to one day have $2 million.
That’s all good. Play to that game. And put a plan next to it. Play to that game. But don’t constantly compare yourself to other people.
14: Market Index:
Next, the Market index. A lot of people say, “Well, as long as you beat the index.”
Okay, as long as you beat the index. I am more concerned about beating my goals than I am about beating the index. I’m not worried about beating the index. I’m worried about beating my goal.
What is my goal?
What is the deadline?
I want to beat that number. Because it’s mine. That’s what I’m committed to.
What is my deadline?
I’m committed to this.
I’m not committed to the index.
I’m committed to this.
Maybe I need to do a lot more than what the index is doing. Because this is why I’m in business.in business, I can control the amount of growth I’m going to have in my income. I can’t control if I’m studying just the index and the index is going 11.9%, and I beat it 2.3%, but that’s going to take me a long time to get over here bottom of doubles. No. Play your game. Beat your goals instead of trying to beat the index only.
15: Befriend Money Makers:
Rule no 15 – befriend money makers. I’ll tell you why befriend money makers that you trust. If you’re around other people who know how to make money, you’re going to make money. That’s just kind of how things work out. If you’re around people who know how to make money, you’re generally going to make money.
If you’re around people who don’t even know how to make money or don’t even make a lot of money, you’re not going to make a lot of money. You know, so know who you’re going into business with, know who you’re doing things with. Sometimes things seem too sweet or sexy and all this stuff, but you don’t know the person.
I don’t touch any of that stuff. I need to know who I’m going to be doing business with.
I hire very slowly. Very slowly. I fire very fast. The moment I’m done with somebody boom, gone. Four people we fire in a day, no problem. I can’t do this, the tolerance is not in the right place, we can’t do this, we need to move on.
But I hire slowly. Especially the higher up it is, the more I travel with the person to get to know them. Same thing when it comes down to here.Whoever you’re going to do business with, befriend them. Travel with them.
If somebody’s extremely wealthy, go to dinner with them. Get to know their wife.
See how they are around their kids. Kind of see their standards of living, see their discipline, see their behavior, and then say, I like this person. I like what their friends say about them. I like how his. This is the person I can do business with.
16: Diversification is for Sissies:
Rule no 16: Diversification is for absolute sissies. So if you’re a sissy, and your risk tolerance is very low, it’s okay. It’s okay to be a sissy. A lot of people are sissies.
But if you truly want to create your wealth, and you’re wondering why in your lifetime
you worked for 17 years and you don’t have a single penny, and you’ve made $617,000, yet you only have $6,000 to show for it, there’s a problem there. There’s a problem there.
What is the problem?
Diversification is a great concept to sell for these expert financial advisers who are
Playing every single thing safe and all these other things, yes. Now, for those of you who are watching this and you’re 73 years old, diversification may be good for you if you already have hit your goal of $6 million and you’re where you’re at.
You’re 62 years old, and I respect the fact that you already hit your numbers are solid.
Risk tolerance is lower, time horizon is lower. you’re playing a different game. I’m talking mainly to the people who are in the offensive mode of their lives. That you’re trying to get here near the bottom.
Maybe you’re around this market middle. I’m not talking to the people that are here at the bottom. I’m talking to the people that are here between the front and middle.
You’re trying to get your doubles to go quickly, faster. If you just rely on diversification, 20, 30, 40 years, well, you just got to know that’s going to take 40 years, it’s going to take 30 years. Maybe. That’s if everything goes the way it’s supposed to be going.
So I don’t recommend just relying on diversification to take you to where you want to get to.
17: Leverage:
Rule no 17, the game is about leverage. everything is leverage. Now let me explain what leverage means. I’m not saying leverage goes into debt with everything. I’m not talking about leverage like that. I’m talking about leverage, period. What could leverage be? Leverage your business.
How can you grow your business if you’re running a business?
How can you leverage to have more support?
How can you leverage to sell more?
How can you leverage to expand more?
How can you leverage to increase the volume of business?
How can you leverage to market yourself more?
How can you leverage to get to the customer faster?
How can you leverage to increase the speed of growth of your business?
How can you leverage to get certain things going?
How can you leverage?
Everything is a leverage game and the more you study the concept of leverage and the game how it works, the better it is for your wealth.
18: Positioning:
Rule no 18, positioning. Positioning has to do with, for instance, I’ll tell you what positioning is. We could do a whole thing on positioning, but I’m just going to give it to you in a shorter sentence. Positioning.
If I’m going to go work at a company and I’m going to have a piece of the equity, and I’m
Going to position I to own a piece of that company, and it’s going to go public,
That’s smart positioning. That’s very, very smart positioning. Tom over here who’s our president, Tom created his wealth by positioning.
He went and positioned himself in certain places and participated in the victory by
Owning a piece he positioned himself. Sometimes it’s positioning. Sometimes it’s who you’re running with.
A lot of times it goes like, “I’m making great income with this company I’m at.”
Yeah, but you haven’t positioned yourself yet because there’s no backing on the equity.
So it’s positioning. You’ve got to also position yourself here to make sure you’re taking care of that part, Of course, you’ve got to take care of your credit, you’ve got a high income, savings, Investments, but you’ve got to make sure you’re positioning yourself properly as well.
19: Strategic Partnerships:
Rule no 19, strategic partnerships. Strategic partnerships. The more you can create an environment, it’s kind of similar to befriending money-makers, but this is slightly different because it’s intentional.
If you can figure out what we do at our company, is we have strategic partnerships where a lot of people make money? The more people make money, the more people continue to do business with you if there are strategic partnerships.
I have strategic partnerships with $400 billion companies, $200 billion companies, and $60 billion companies. I have strategic partnerships with a lot of different companies that benefit them. Strategic partnerships increase the value of making money because a lot more people are making money with you when they go into business with you.
20: Big Check Syndrome:
Last but not least, big check syndrome. Let me tell you what the big check syndrome is.
Oh my gosh, I’ve seen so many people screw this whole thing up. And I’ll just explain to you what it is. So, for instance, say you are doing real estate, hypothetically.
.
And all of a sudden, you get this one client who wants you to sell their home. It’s a $3 million home. I’m just throwing numbers out there. And you go and sell this $3 million home, and the check is a hundred and some thousand dollars that you get. and you say, “Oh my gosh, I made $100,000 and for two months, you live as if you made $100,000 in a month.
What you don’t realize is that a $100,000 check in a month, you need to look at it as an $8300
A month’s income for that year That’s what that means It’s not $100,000 and I’ve seen so many people who treat this as $100,000 in a month, and they get cocky arrogant, all this stuff and then they go back to right here beginning of double.
their double goes lower and lower and lower. and they don’t realize it’s just a big payday. Let me explain.
Would you rather have right now a half a million dollar cash I give you?
Watch this question, you’re going to answer.
Would you rather take half a million dollars?
Given to you, upfront, I’m going to give you half a million dollars or would you rather take an income stream, guaranteed of $100,000 over 20 years? Which one would you take? Half a million up front, $100,000 over 20 years?
Which one would you take?
Believe it or not, most people will say, well, I think the right answer is $100,000.
Most people would take half a million. Let me tell you why the $100,000 allows you to do more. The 100,000 is two million bucks. The half a million dollars is a half a million bucks.
See, this allows me to have a stronger backing to make bigger decisions
To get bigger doubles. Now you may say, but half a million dollars?
That already puts me here at $512,000.
It’s irrelevant if you don’t know how to play the money game. I want a high income as well. I want income coming in that feeds my game so I can increase my net worth.
This income is a very, very important game, so don’t get too crazy about big check syndrome and all of a sudden fall for it and lose everything that you have because it can mess up your net worth and you work all the way back to your double.
Here are five frequently asked questions (FAQs) based on The 20 Rules of Money article:
- Why is money described as a game, and how can one learn to play it?
- Money is considered a game because, like any game, it has strategies, rules, and skills that can be developed. To succeed, you must learn and practice financial principles and tactics, like managing investments and understanding financial risk, just as you would improve at chess or sports by playing repeatedly.
- What does the “doubles game” mean in the context of money?
- The “doubles game” refers to the concept of doubling your money multiple times to reach wealth goals. For example, if you start with $1,000 and double it ten times, you would reach $1 million. This strategy involves smart investments and planning for consistent growth.
- Why is it important not to be a “hater of money”?
- Having a negative mindset towards money can hinder financial success, as people who resent wealth may avoid opportunities to earn and grow it. The rule emphasizes that welcoming money as a tool, rather than viewing it negatively, fosters a mindset conducive to financial growth.
- What is the purpose of having a “secret crisis account”?
- A secret crisis account is a backup fund that no one else knows about, meant to be used in case of a severe financial emergency. Unlike an ordinary emergency fund, this account is hidden and reserved strictly for critical situations, providing financial security during unexpected downturns.
- Why should you avoid “big check syndrome”?
- “Big check syndrome” warns against overspending after receiving a large, one-time payment. Instead of viewing it as immediate income, consider it as spread over time to prevent reckless spending, ensuring you stay on track with long-term financial goals rather than falling into financial setbacks.
