Simple Money Rules That Actually Work

When I was starting out (green in the new to money, not the have plenty of it sense), I was obsessed with figuring out the perfect set of rules.

The spreadsheet was colour-coded. The budget was balanced to the cent. I was certain that if I just followed the right steps, I’d crack the wealth code.

Then… life happened.

Unexpected bills. Overconfident decisions. That one “investment opportunity” I’d rather not speak of, that made me wiser not richer in the money sense.

What I learned is this:

most money “rules” look good on motivational posters—but they often fall apart when you’re staring down real-life emotions and trade-offs.

What actually works?

The budgets and the rules work great. But to build a real solid foundation and get you money confident, what really work are

Simple principles. 

The kind you can remember on a bad day. The kind that don't demand perfection, just a bit of respect and a try-again-on-the-days-you-do-fail attitude.

Let’s break them down:

1. Spend less than you make…or rather Earn more than you spend

Let’s start with the classic, then flip it.

Spending less than you make is undefeated. It builds financial breathing room. It creates options. It’s boring. And it works. But it can feel restrictive, like you don’t have enough.

So, lets go ahead and flip it to: earn more than you spend. 

Want to buy the R10,000 jacket? Great—build the income engine first. You don’t have to shrink your lifestyle. You just need to widen the gap before you fill it. Always be thinking, how can I add income that buys me this thing. When you get really good at this, you’ll make income engines that keep buying you this over and over, not just once.

Money lesson:

Wealth doesn’t require frugality forever. It does require a surplus—however you get there.

2. Treat credit cards like debit cards…or use cash

If you wouldn’t swipe it from your own bank balance, why are you borrowing your future to fund it?

Don’t tell your future self to take a hike, make things easy on your future self.

Credit isn’t evil—it’s just brutally honest. It gives you options, but charges you rent to use them. Always remember, there is a reason why banks have nicer furniture than you do.

Principle: 

Swipe what you can clear. Avoid “buy now, guilt later” transactions. If you can’t do this, rather use cash.

3. Invest R 20 of every R 100 you earn

It’s not about the amount—it’s about the habit.

You’re not just investing in markets, you’re investing in identity. You’re saying, “I prioritise future me—even if today’s me thinks I could really use that gadget I would have forgotten about by tomorrow.”

Automate it. If it’s manual, it’s optional. If it’s optional, it’s at risk.

Anchor thought: 

Investing isn’t what wealthy people do with extra money. It’s how people become wealthy in the first place.

4. If you can’t buy it twice, you likely can’t afford it

Want to buy something? Could you comfortably afford it… again?

If not, you’re probably stretching.

What this rule really does: 

It protects your margin, not your possessions. Because when life hits you with surprise expenses (and it will…again and again), your buffer beats your stuff

5. Avoid borrowing money to buy luxuries

If something depreciates the moment you unwrap it, adding interest is like lighting a R200 note on fire, slowly.

And let’s be honest, we don’t all have a living room with a couch stuffed full of cash we can do that with.

Save first. Buy later. Or if you really must have it now—make sure it’s an intentional choice, not a knee-jerk dopamine swipe. If the thing you “need” now will make you an income, even better!

Rule of thumb: 

Never pay twice for one moment of “I deserve this.”

Final Thought

These principles aren’t rules to follow perfectly. They’re anchors to come back to when life gets messy.

Some days you’ll break them. I still do, occasionally. But then I’ve followed them to the point where I can without derailing my finances the one time I do it. Get there.

Remember, the magic isn’t in perfection—it’s in return. Coming back to the kind of decisions that build Emotional Equity: calm, intentional, resilient.

(If you don’t know what emotional equity is, check out our wealth planning business, Grove Financial Solutions, website: www.grofinsolutions.com )

So, if you’ve bent one of these lately? Welcome to the club. 

The point isn’t to obey rules—it’s to build a relationship with money that respects your values and supports your future.

Until next time.