9 Money Rules of the Top 1%

About this video

Martell lays out nine money rules he says took him from broke at 22 to multi-millionaire. Rule one, act your wage: automate finances into buckets and live on little, recounting a ski trip at 21 where he spent a consulting cheque before realising about half was owed in taxes, after which he hired an accountant and went on payroll. He cites that 33% of millionaires never earned more than 100,000 a year. Rule two, the 10% rule: aim to live on 10% or less of income, starting higher if needed, and reinvest the surplus. Rule three, prioritise investments in income-generating assets and skills over depreciating purchases and loans. Rule four, have a nest egg of at least 6 months of expenses in liquid savings. Rule five, don’t be over-leveraged, recounting furniture financing that took another 4 years to pay off and citing that 47% of people hold credit card debt month to month at an average 22% rate. Rule six, invest in your skill set: he says coach Bob helped him reach almost a million dollars in income in that business in the first year, and that he has invested about $1.7 million in coaches and seminars. Rule seven, know your risk return using a quadrant favouring low risk, high return in the business you know. Rule eight, build a personal P&L and treat the household like a business, even hiring managers for possessions. Rule nine, money is a tool not the goal.

Key takeaways

• Act your wage by automating money into buckets on arrival and living on a small percentage of income, as Martell says he has even while earning millions
• Work toward the 10% rule of living on 10% or less of income and reinvesting the surplus into yourself and income-generating assets
• Keep a nest egg of at least 6 months of liquid expenses so emergencies do not force bad decisions or business closure
• Avoid over-leverage and consumer debt, noting Martell cites 47% of people carrying credit card debt month to month at an average 22%
• Invest in skills and stay in your area of competency for low-risk, high-return opportunities, using a personal P&L to track household income and expenses

Episode details: published October 15, 2024 · 14:20 long. Summary written by Self Growth Videos from the episode itself. Business results and any income figures mentioned are Dan Martell’s own claims, shared for education — they are not typical or guaranteed.

← Previous: Brutally Honest Advice for Young Men · Next: How to Get Your Sh*t Together →

All Dan Martell videos · Dan Martell profile · Dan Martell (official site)