7 Rules to Live a Wealthy Life

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Money touches every part of life — from the home you live in, to the opportunities you seize, to the stress you feel when things get tight. Yet wealth isn’t just about a big paycheck. It’s about how you use, save, and grow what you already have.

The good news? You don’t need to reinvent the wheel. Timeless financial rules exist for a reason: they work. Follow them, and you’ll not only build stability but also create freedom for your future self. Are these hard and fast rules? No, but provide good guide rails to deploy your money and become wealthier. Here are 7 rules to live a wealthy life.

Rule 1: Keep Housing Up To 30% of Your Income

Your home should be a foundation, not a financial trap. Spending more than 30% of your gross income on rent or a mortgage can choke your budget, leaving little for savings or growth.

📖 Source: U.S. Department of Housing and Urban Development defines households spending more than 30% on housing as “cost-burdened.”

Rule 2: Pay Yourself First (Save at Least 10%)

Before bills or lifestyle spending, set aside at least 10% of your income for savings and investments. This is the Habit of 10%. Think of it as paying your future self a dividend every month.

📖 Source: Classic advice from The Richest Man in Babylon by George S. Clason: “A part of all you earn is yours to keep.”

Rule 3: Limit Lifestyle Debt

Credit cards, “buy now pay later,” and financing luxuries come at a high cost. If you can’t pay cash, ask yourself: Do I really need this? Can you use the Habit of Cash? Keep debt for investments or growth (like stocks or a business), not consumption.

📖 Source: Federal Reserve data (2024) shows the average U.S. credit card APR above 20%, making lifestyle debt one of the fastest ways to erode wealth.

Rule 4: Build an Emergency Fund (3–6 Months)

Unexpected expenses are part of life. An emergency fund acts like a shock absorber, protecting you from turning small problems into long-term debt. Get to a $1,000, then build up the reserves to have a fully funded emergency fund.

📖 Source: Bankrate survey (2024) found that 56% of Americans can’t cover a $1,000 emergency expense from savings.

Rule 5: Invest Consistently, Not Occasionally

Wealth is built with patience. Put your money to work every month in retirement accounts, index funds, or other vehicles.

📖 Source: Vanguard research shows consistent dollar-cost averaging into index funds outperforms market timing attempts over long horizons.

Rule 6: Have a plan for your money

A simple framework, the 10-20-70 Plan does just that.

• Save 10% by paying yourself first.

• Put 20% toward debts (e.g., credit cards, car loan). After the debt drains are cleared, it leaves much more to invest.

• Live on the remaining 70%.

This balance keeps you building your savings, paying off debts and still enjoying life today with what you have.

📖 Source: The 10-20-70 model is a modern adaptation of percentage-based budgeting frameworks taught in financial literacy programs, prioritizing you first.

Rule 7: Grow Your Income (Don’t Just Cut Costs)

Frugality helps, but the fastest way to wealth is expanding your earning power. Focus on developing skills, starting ventures, or investing in income-producing assets. Bigger income = bigger freedom and faster.

📖 Source: Bureau of Labor Statistics data shows wage growth is closely tied to continuous upskilling and career mobility.

💡 The Bottom Line

These rules aren’t about restriction. They’re about choice. By following them, you’ll buy yourself the freedom to say yes — to opportunities, to experiences, and to the life you actually want.

This post kicks off our Financial Rules Series. In the coming weeks, we’ll unpack each rule with real-life examples and practical steps.

To your success.