9 Money Rules I Live By

Below are my nine money rules that have helped me pay down $40,000 in student debt and save almost $100,000 by the time I turned 27. I want to emphasize that these are my money rules, so take them with a grain of salt. I know everyone’s situation is different, but I’m sharing mine to provide some perspective, and hopefully, help you reach your own financial goals as well. Let's dive in. 🙂

1. Wait It Out

If I want something that costs more than $500, I typically wait a year before purchasing it. You might think, "whoa, that’s extra", but here’s why this rule works so well for me:

1. Waiting proves I truly want it 🫡 If I still want it after a year, I know my desire wasn’t impulsive. This leads to a much more satisfying purchase.

2. Most things eventually go on sale 🛍️ I’ve had great luck with this because items I’ve been eyeing almost always get discounted, and it feels amazing to snag them at a lower price.

3. I subconsciously save for the item 💸 By the time I actually buy it, I don’t feel guilty because I’ve already set money aside for it. Triple win!

2. Automate Everything

One of my biggest takeaways from Atomic Habits was the idea that "human behavior follows the law of least effort". This applies to finances, too.

If saving money requires an active effort every month, you’re setting yourself up for failure because it’s too easy to miss a month or forget a payment. I made this mistake after college. Once I automated my savings and credit card payments, I freed up so much mental space.

Weirdly enough, when I prioritized saving by automating it, my every day expenses didn’t feel any different. Psychologically, I only saw the money I could actually spend, so I naturally adjusted. But when I tried saving after spending, guess what? I usually had nothing left!

💡 Pro Tip: If you want to earn a competitive return on your savings, check out Wealthfront. I’ve made about $3,000 in a little over a year just by letting my money sit in this high yield savings account. There are other HYSA account so do your research!

3. The 50% Rule

When evaluating whether I’m paying too much for rent or considering a car purchase, I follow my 50% rule:

👉 My fixed expenses (rent, car payments, student loans, etc.) should be around 50% of my take home pay. For example:

• If I take home $5,000 per month, then my max budget for fixed expenses is $2,500.

• The only exception to this rule is if I make over $300,000 per year. My fixed expense percentage should be lower. Just because I earn more doesn’t mean I should justify spending $9,000 per month on rent and car payments (50% of a $300K salary adjusted for taxes). Instead, I would use that extra money to save and invest more.
  
  

4. Skip Airport Prices

Ever noticed that airport food and drinks are ridiculously expensive? Well your hunch is correct. On average, airport concession prices are 1.5x to 2.0x higher than retail.

Since restaurants and stores can charge a premium (because where else are you going to go?), I avoid paying these prices by:

✅ Bringing my own snacks
✅ Carrying a reusable water bottle
✅ Using Priority Pass or complimentary airport lounges from my credit card

5. Negotiate Always

I learned from my mentors that almost anything can be negotiated. Here are a few personal examples:

• Rent Negotiation: When signing a new lease, I asked if they’d waive the $300/month parking fee for six months in exchange for a longer lease commitment (12 to 18 months). Since I had no plans to move, it was a win win situation. They accepted!

• Job Offer: When I was offered a job with a lower than expected salary, I asked the recruiter what skillsets would qualify me to be at a higher range. When she told me, I made a case for myself and landed a higher pay band. Woot!

• Wedding Dress: I bought my wedding dress overseas without trying it on. Risky, I know. But before purchasing, I asked the designer if they could offer a discount since I wasn’t trying it on. And guess what? They did!
  
  

💡 Negotiation Tips:

1. Do your research to have leverage.

2. Frame your offer as a win win for both parties.

3. Be prepared to walk away if your terms aren’t met.
   
   
   

6. Hunt for Deals

This ties into my "Wait It Out" rule. I never pay full price if I can avoid it. Some of my favorite deal hunting hacks:

💰 Rakuten & Honey for cashback and coupon codes (I’ve saved hundreds of dollars this way).
💰 Facebook Marketplace & OfferUp for second hand finds (I scored a $1,500 pull out couch for $500!)

I love buying second hand because it saves money and helps reduce waste. 🌱

7. Spend on Your Values

This might seem contradictory to my previous points, but I happily spend money on things that align with my values. For me I place value in:

• Time with loved ones → travel & experiences

• Health → gym memberships, tennis lessons

• Personal growth → books & courses
  
  

💡 Moral of the story: Cut back on what doesn’t matter so you can spend more on what does.

8. If It Ain’t Broke, Don’t Fix It

It’s tempting to upgrade your tech every year (looking at you, Apple), but honestly, if my phone and computer still work fine, why replace them? For example, my first macbook lasted 12 years before I finally upgraded. It was slow and the battery was dying, but hey, 12 years is a solid run!

9. Friendly Loans (Proceed With Caution!)

Lending money to friends and family is tricky. When done right, it strengthens relationships. When done wrong, it can destroy them.

If you decide to lend money:
💡 Assume you’ll never get it back. Thinking of it as a gift rather than a loan has been super liberating for me. But be careful, people can take advantage of generosity. Always think it through before lending.

And there you have it, my 9 money rules! 🙂

I hope you found something useful here ♡. I’d love to hear about your own money rules. Message me at sam@pennyandpurpose.com because I’m always fascinated by how others approach money!