As a father, it becomes more and more concerning that financial literacy is not taught in traditional school. Seeing as I have had monetary success, I feel it’s my responsibility to do something about it.

The basic concepts of money are you need to earn it, store it, and multiply it.

But you know I’m going to give you more than that.

Here’s the step-by-step map for financial literacy. 

10 Financial Literacy Rules to Live By

1Never Spend It Until You Get It

This one is so simple, but it is violated so often.

Unless that money has hit your account, it isn’t yours. Don’t spend it! This includes credit cards. 

2The 40% Rule

Whatever your gross income is, you should be saving 40% of it. Not to let it sit in a bank, but to invest in yourself and your business.

That is an investment that will always provide huge returns. 

3If You Can’t Write It Off, Don’t Buy It

It sounds tough. But if you want to master financial literacy, you’ll need discipline. 

4Don’t Own — Rent

With all the taxes, repairs, and upkeep of a home, buying doesn’t make sense for most Americans.

Rent where you live. 

5Stabilize and Grow Your First Flow

Have you ever seen anyone become a billionaire with their side hustle? I didn’t think so.

Get great at something and expand it. 

6The 47 Rule

If you are going to spend 40+ hours a week working a job, you need at least an hour a day to improve yourself.

Self-improvement improves the income. 

7Stay Broke

I could argue financial literacy depends on this rule most of all.

Once you start earning more money, don’t increase your spending. 

8Never Lose Money

I admit this is Warren Buffett‘s rule, not mine. However, it holds true.

Make sure whatever you invest in will be a good deal for you. 

9Cash Flow, Not Cash

Cash depreciation continues every minute of every day. That’s why you need assets that pay you cash flow.

At the end of the day, the money under your mattress is just paper. 

10Never Quit Until You Achieve Your Goal

This applies most heavily to financial success because so many people give up or settle for “just enough.”

Rise above the average with your money and in life. 

We live in a country that is rich, but people live with scarcity in their minds. If you take these rules to heart and use them, you won’t just be well on your way to financial literacy — but also financial freedom.

Be Great,

Grant Cardone  


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