Always create value. It doesn’t matter if you are in corporate, or an entrepreneur, or a homemaker, but having a focus on value creation will keep you lean and alert. The value may not always be financial, but for me that mindset has reaped lots of financial benefits.
In every financial transaction, make sure there are no losers (with bona-fide intentions). This way, you’ll make sure you leave a stream of willing partners for future transactions.
If a spend is to build your ego, it’s probably a good idea to forego. Hard egos make for hard falls and poor financial decisions.
Cash is highly underrated. Credit is highly overrated. Stay on the right side of a cash balance at all times, in business and in personal life.
Don’t mix money with friendship. There is only one winner and it’s usually the money and not the friendship.
Keep money rules clear with kids. Early is good, in an age-appropriate way. (even a 3 year old understand money way better than you would imagine)
If it’s a relationship or money, let the relationship win. Money is not worth that much. Corollary: over time get smart so it’s never the money or the relationship 😉
On balance, be a little more generous than you feel like when occasion calls for it. This is especially true when tipping at restaurants etc. I have learned it is better to eat out less frequently and tip better. Wait-staff and people in similar rules make very little for very hard work, and somehow always recall the experience through a warmer lens when have tipped well.
Caring for your belongings for their full life makes you feel better and be better off than does subscribing to a use and throw lifestyle. The net benefit is more to your well-being than to your pocket book, and your pocket-book benefits significantly over time.
Simple is best everywhere. For example, a simpler asset allocation plan than a more complex one. A simpler lending product when have to take one than the more complex one. Why? Because many are engineered to take advantage of human follies in the guise of giving you a “better deal”, but they have all the data and we don’t.
