The Rules of Wealth

A review by Andrew Forward, of Richard Templar's book on learning the rules that wealth follows (to help you then break into being wealthy yourself)


Rule 1: Anybody can make money - it isn't selective or discriminatory

We all start with a clean slate. Anyone can be wealthy - you just have to apply yourself.

Rule 2: Decide on your definition of wealth

For example, wealth is if you can live off the interest of your interest. With a definition you can monitor and judge your success - otherwise how well do you know you are doing?

Rule 3: Set you objectives

What does rich mean, how you intend to get there, how long you expect it to take and what you are going to do with your money once you get it. This must be achievable, if you know nothing about property and are not interested in learning, then do not set your objective as getting rich in real-estate.

Rule 4: Keep it under your hat

Either I do not care, I will be jealous and negative, or I will exploit you if I know you intend to get rich. You don't want to look like a preacher, you don't want to give away all your great ideas, and it is nice having a secret.

Gaining prosperity is something you do privately, clandestinely, surresptitiously - it is best done alone.

Rule 5: Most people are too lazy to be rich

They say they want to be, but they don't. Wealth is lying around waiting to be claimed, those who claim it get up early, work hard and put in the hours (which is not the same as putting in long hours as work).

Rule 6: Understand your money beliefs and where they come from

Money just is, so if you believe in any one of the following, be aware of it, and deal with it:

Which do you believe? Work out why you hold these beliefs - did you actively think about it or was it inherited, left over, picked up along the way. Get rid of any beliefs that you can question and accept are nonsense.

With your empty slate, here are some new beliefs:

Rule 7: Understand that wealth is a consequence, not a reward

You are not given money by a committee that examines if you deserve it or not. Working hard at making money (again, different just plain working hard), gives you a better chance of becoming rich.

Rule 8: See wealth as a friend, not the enemy

Having money, working towards getting wealthy does not mean you have to change your politics. Money does not lessen your spiritual virtues, karmic harmonics, or affect your future incarnations. What you do with your money might, but money itself is a friend, not foe.

Rule 9: Decide what you want money for

This exercise will unveil a lot. Money alone cannot make you happier, prettier, more fun to hang around - it is you that needs to make those things happen, and if money will help get you there, then add it to your list.

Also think about what you do not need more money for. Just because you have money does not mean you need a big car, a huge home, two summer cottages.

Rule 10: Understand that money begets money

Rule of 72 (72%interest rate = # years to double an investment), and compound interest are the key here.

Put some money aside for breeding purposes. Cream a little off for spending. Reinvest the bulk to build up a good and healthy stock. Keep it to yourself.

Rule 11: If you see money as the solution you'll find it becomes the problem

Money does not protect you from disease, make relationships flow smoothly. You need to find the cure to your problems first, and then find a way of funding that cure. Money is not the cure. It is the oild that smoothes the wheels (not the engine).

Rule 12: You can make lots of money, you can enjoy your job, and you can sleep nights

You do not need to be ruthless, manipulative, amoral, nor greedy. If it is like that, then you are doing it wrong

Rule 13: Don't make money by being bad

It is not worth having to lie, cheat, steal, defraud, ..., to be wealthy. Earning money and being wealthy should be fun.

Rule 14: Money and happiness - understand their relationship

Money is a placebo, not a cure. Too little money can make you miserable, too much money can make you miserable, too much stuff can make you misearable, too little stuff can make you miserable. MONEY DOES NOT BUY HAPPINESS. Money can buy away a lot of unhappiness, but it is you that must decide how to be happy.

Rule 15: Know the difference between price and value

Is a $100 bottle of wine 20 times better than a $5 bottle? You are not paying for the wine alone, you are paying for the ambience, the service, the location, waiter's expertise, good company, fine tablecloths, privacy, style, class, tradition, food, trust, humidity and storage, tone and surroundings, fellow dining guests and the great conversation.

The price is what someone is willing to pay for something, and value is the preception of the price that something is worth - both of which can vary greatly.

Rule 16: Know how the wealthy think

What papers do they read? Which sections first? Which they disregard? In general, choose the more serious papers, more serious sections, discard frivolous sections, read the money/business sections first. You need to know the lingo, where they live and eat, how they work, relax, invest and save. Study money. Try to talk to wealthy people, ask questions.

Rule 17: Don't envy what others have

Pointless, learn from them instead. Use others as inspiration.

Rule 18: It's hard to manage yourself than it is to manage your money

Do you have what it takes to be wealthy? Determined, hard working, backbone, stamina, guts? The wealthy have enormous drive and are prepared to make enormous sacrifices. They manage themselves and forego instant rewards for bigger paychecks in long term. Self-control and delayed gratification.

Rule 19: You've got to know where you are before you start

What do you have, what can be used, what can be discarded, what you owe, what you are owed, what is your networth?

ItemAsset ValueDebt Value
Other Debt  

Rule 20: You've got to have a plan

The plan tells you how to get there. A plan to generate income in other ways - involves taking control of your life; tackle your debt, build your worth. Real wealth comes from doing deals, not earning wages, salaries or fees. A good plan now, is way better than a great plan tomorrow.

Rule 21: Get your finances under control

Stop the leaks: taxation, paying interest, not properly invested, spent on the wrong things.

Rule 22: Only by looking wealthy can you become wealthy

The poor look poor; not because they have to, they choose to. Those who look weak and needy are treated as such - powerful will strut and look confident. Learn style and class, avoid the flashy. Quality, simple limes, good haircut, clean nails.

Rule 23: Speculate to accumulate (no, this isn't gambling)

Getting wealthy is like an actor that gets overnight success. Okay, so maybe Aquaman was your big break, but you also starred in every school production, took drama in school for years, worked at Days of our Lives for what seems like ever. The point is that your plan from the beginning was to be wealthy, so eventually you will catch a break.

To speculate is to (1) discuss, study the wealthy closely; (2) think deeply and understand your subject; (3) invest, speculate with your time and effort, not just your money; (4) believe in something not entirely certain, shorten the odds by following 1-3 but be aware that nothing is guaranteed.

Rule 24: Decide your attitude risk

Level of risk is very personal thing - what is your level? For every risk that you take, try to offset it, for example:

Rule 25: If you don't trust someone, don't do business with them

This includes people, companies, corporations, governments.

Rule 26: It's never too late to start getting wealthy

Anyone can make money - include old people! It just means that you shift your focus to becoming wealthy. It is never too late to start investing in shares, a pension, in style, in quality, in yourself, in life.

Rule 27: Start saving young (or teach your kids this one if it's too late for you

Put more aside than you need, the leftovers become the savings. This does not mean to scrimp and save ( i.e. the latte factor), but just start consciously putting money away. Ten dollars ($10) a week, for ten years is worth over $5000. Make it automatic, 20%, 40%, or even 50% of what you earn, you save - no ifs, ands or buts.

Rule 28: Understand that your financial needs change at different stages of your life

D'huh. Just be aware that you need more money when raising kids, but less once they off to university.

Rule 29: You have to work hard to get rich enough not to have to work hard

Rich people did not watch TV in the evenings, they worked their socks off. The rich start early, work late, sacrifice a lot - short lunch breaks, do not waste time. If you want to be serious, you must do as the rich do.

Work like there is no one watching, like you don't have a boss, like your life depended on it. Also, you have to enjoy it (no chores allowed). Now, working hard at anything will not make you wealthy. An office cleaner on minimum wage will not become rich by cleaning really hard and thoroughly. She might become rich by starting her own company and finding new clients and hiring great staff that are happy and motivated.

Rule 30: Learn the art of deal making

Deals make you money.

What do you have that othes might want?

Rule 31: Learn the art of negotiation

Revolves around making the other person feel they are getting as much as you are. If someone buys from you, you should expect them to profit as well - do not sell and run. Go for repeat business, create a good reputation, feel good about what you do and go for partnerships.

Negotation is everywhere, from a pay raise to pocket money with your kids.