THE RULES OF WEALTH

Richard Templar William Matcham September 9, 2013

READ, THEN MAKE A PERSONAL ACCOUNT OF EACH RULE IN DETAIL

Contents
1 Front Cover 2 Back Cover 3 Front Matter 4 Book Contents 5 Acknowledgements 6 Introduction 7 The Rules 8 Brief Summary Of Rules 8.1 Thinking Wealthy . . . 8.2 Getting Wealthy . . . 8.3 Get Even Wealthier . . 8.4 Staying Wealthy . . . . 8.5 Sharing Your Wealth . 9 Detailed Notes On Rules 9.1 Thinking Wealthy . . . 9.2 Getting Wealthy . . . 9.3 Get Even Wealthier . . 9.4 Staying Wealthy . . . . 9.5 Sharing Your Wealth . 2 2 3 3 3 3 6 10 10 12 16 17 18 20 20 20 20 20 20

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Front Cover
THE RULES OF WEALTH Richard Templar

Back Cover THE RULES OF WEALTH

A personal code for prosperity

 Money - it makes the world go round. We all believe it can make us happy. After all, wouldnt it be great to have enough of it so you dont ever need to worry? Enough to buy the dream house, car, or simply enough so you dont have to think about what youre spending. So how do the wealthy get rich? Luck? No - they know something that we dont. They know The Rules Of Wealth. Richard Templar is back and this time he will make me rich. He reveals in this book the simple golden rules that create wealth and make it grow. The Rules Of Wealth analyses the behaviours, the mind-sets, the lifestyles and the nancial know-how behind becoming a richer, happier and more prosperous you.

Front Matter
This is a Pearson book. It is part of the Books that make you better series. It was written in 2008. Everything about it is British. Right now I shall read the Rules of: Wealth, Love, Life, Work, Money and How to Get Things Done. Later I will read the Rules of: Parenting and Management

Book Contents
DO THIS!. Front matter is acknowl and intro, then you have thinking wealthy, getting wealthy, get even wealthier, staying wealthy and sharing your wealth

Acknowledgements
The writer of the book would like to thank Dan Clayden, who is a brilliant Financial Adviser. http://www.claydenassociates.co.uk/ The writer of the book dedicates the book to his father-in-law who is a Rules Player par excellence and an example to us all. Like I aim to be.

Introduction
Everyone wants to be well o. People are fascinated by those who already are. We want to know how they did it and how we can do it too.

 The simple truth: wealthy people tend to understand and do things the rest of us dont. They follow certain rules and it is these rules that separate them from everyone else. This book codies what those behaviours are so that we can be more wealthy. These rules are things that we have observed wealthy people to do. This book reveals: What people do to make money How they carry on making money How they hang onto it once theyve got it How they spend it How they invest it How they enjoy it How they make use of it altruistically. Everyone would like to do as little as possible to get wealthy and rich. 50 billion is gambled in the UK every year. There are a lot of people looking to make easy money. If so many people are gambling so much, it implies to me that they either: Have too much money Believe in their own luckiness Like to lose so they have a reason to feel wretched Are desperate for easy money This book is not for anyone who is any of the above. This book sets out strategies and principles that wont make you rich quick, but will increase the odds of your making money while remaining a decent person. In eect we can become the house and always win. What do we have to do? None of these rules guarantee success. But each narrow the odds. They increase our chances of making money. The book assumes you want to: Get richer Do it legally Do something useful with it once you have it Put something back Keep some of this stu under your hat 4

 Thus the book is in ve sections. We start with thinking wealthy because thats the foundation on which all things wealth related rest. We all have money beliefs. Most of us believe that even if money doesnt make us happy it will at least allow us to be miserable in comfort. We almost all believe that money lets us buy better stu and better stu will make us happy. This book will not discourage any of those beliefs but give you the means of nding out for yourself whether or not this is true. Time to start. Shall we crack on? Whatever happens, heres to your greater prosperity.

The Rules

1) Anybody can make money - it isnt selective or discriminatory 2) Decide on your denition of wealth 3) Set your objectives 4) Keep it under your hat 5) Most people are too lazy to be wealthy 6) Understand your money beliefs and where they come from 7) Understand that wealth is a consequence, not a reward 8) See wealth as a friend and not the enemy 9) Decide what you want money for 10) Understand that money begets money 11) If you see money as the solution youll nd it becomes the problem 12) You can make lots of money, you can enjoy your job, and you can sleep nights 13) Dont make money by being bad 14) Money and happiness - understand their relationship 15) Know the dierence between price and value 16) Know how the wealthy think 17) Dont envy what others have 18) Its harder to manage yourself than it is to manage your money 19) Youve got to know where you are before you start 20) Youve got to have a plan 21) Get your nances under control 22) Only by looking wealthy can you become wealthy 23) Speculate to accumulate 24) Decide your attitude to risk 6

25) If you dont trust someone, dont do business with them 26) Its never too late to start getting wealthy 27) Start saving young 28) Understand that your nancial needs change at dierent stages of your life 29) You have to work hard to get rich enough not to have to work hard 30) Learn the art of deal making 31) Learn the art of negotiating 32) Small economies wont make you wealthy but they will make you miserable 33) Understand that working for others wont necessarily make you rich - but it might 34) Dont waste time procrastinating - make money decisions quickly 35) Work as if you didnt need the money 36) Spend less than you earn 37) Dont borrow money - unless you really, really have to 38) Consider consolidating debts 39) Cultivate a skill and itll repay you over and over again 40) Pay o loans and debts as a priority 41) Dont be too busy earning a living to make some extra money 42) Save in big chunks - or should you? 43) Dont rent, buy 44) Understand what investing really means 45) Build a bit of capital then invest it wisely 46) Understand that property, in the long run, will not outpace shares. 47) Master the art of selling 48) Dont believe you can always win 49) Understand how the stock market REALLY works 7

50) Only buy shares you can understand 51) Use investment professionals, but dont be used by them 52) If you are going to get nancial advice, pay for it 53) Dont ddle 54) Think long term 55) Have a set time of day to work on your wealth strategy 56) Pay attention to detail 57) Create new income streams 58) Learn to play What if ? 59) Control spending impulses 60) Dont answer ads that promise get-rich-quick schemes - it wont be you who gets rich quick 61) There are no secrets 62) Dont just read this - do something 63) Carry out a nance health check regularly 64) Get some money mentors 65) Play your hunches 66) Dont sit back 67) Get someone to do the stu you cant 68) Know yourself - solo, duo or team player 69) Look for the hidden asset / opportunity 70) Dont try to get rich too quickly 71) ALWAYS ask whats in it for them 72) Make your money work for you 73) Know when to let go of investments 74) Dont chase bad luck runs 8

75) Know why you should be able to read a balance sheet - and how 76) Be one step ahead of the tax collector 77) Learn how to make your assets work for you 78) Dont ever believe youre only worth what you are being paid 79) Dont follow the same route as everyone else 80) Shop for quality 81) Check the small print 82) Dont spend it before youve got it 83) Put something aside for your old age - no, more than that! 84) Put something aside for emergencies / rainy days - the contingency fund. 85) You paid what for it? How to shop around 86) Never borrow money from friends or family 87) dont surrender equity 88) Know when to stop 89) Use your wealth wisely 90) Never lend money to friends or family unless you are prepared to write it o 91) Dont lend, take equities 92) You really, really cant take it with you 93) Know when / how to say no - and yes 94) Find ways to give people money without them feeling they are in your debt. 95) Dont over-protect your children from the valuable experience of poverty 96) Know how to choose charities / good causes 97) Spend your own money because no one will spend it as wisely as you 98) Take responsibility before you take advice 99) Once youve got it, dont aunt it 100) Whats next? Pacts with the devil. Be someones mentor. 9

Brief Summary Of Rules

8.1 Thinking Wealthy

1) Anybody can make money - it isnt selective or discriminatory You have the same rights & opportunities as everyone to take as much as you want. 2) Decide on your denition of wealth If we dont have a denition how can we monitor or judge success? 3) Set your objectives You will want to know in advance what rich means to you, how you intend getting there, how long you expect it to take. 4) Keep it under your hat Now you have embarked on a new journey, a new direction, it might be worth keeping it under your hat. 5) Most people are too lazy to be wealthy Most people are too lazy to be rich. They may say they want to be, but they dont. 6) Understand your money beliefs and where they come from Get rid of any beliefs that you can question and accept are nonsense 7) Understand that wealth is a consequence, not a reward You dont get given the money by a committee who examine whether you deserve it. 8) See wealth as a friend and not the enemy Money is the oil that smoothes life for all of us 9) Decide what you want money for We all spend on what we think will satisfy us, make us happy 10) Understand that money begets money 10

Money makes money. The rich get richer. 11) If you see money as the solution youll nd it becomes the problem It may buy you better medical care after the event but it doesnt protect you. 12) You can make lots of money, you can enjoy your job, and you can sleep nights If you are starting to lose sleep or have stopped enjoying it, then you need to have a talk with yourself. 13) Dont make money by being bad If you dont enjoy the challenge of earning money legit then best go and do something dierent. 14) Money and happiness - understand their relationship Money is a placebo, not a cure. 15) Know the dierence between price and value We think we know the price of something. But the value can spread out far beyond all of that. 16) Know how the wealthy think You may have to choose - money or frivolity? 17) Dont envy what others have Envying them is pointless; learning from them is invaluable. 18) Its harder to manage yourself than it is to manage your money The rst thing I would need to know is: Do you have what it takes to be wealthy?

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8.2

Getting Wealthy

19) Youve got to know where you are before you start Well, before we can go forward we have to know where we are now. 20) Youve got to have a plan The plan gives you the important bit - how you are going to get there. 21) Get your nances under control Before you control your nances you have to stop the leaks. 22) Only by looking wealthy can you become wealthy You need to look powerful and condent. 23) Speculate to accumulate You toil away for years and suddenly you are lucky. 24) Decide your attitude to risk Its entirely up to you what level of risk you feel happy with. 25) If you dont trust someone, dont do business with them Listen to your intuition, be the biggest, boldest and bravest 26) Its never too late to start getting wealthy Its never too late to start investing - in shares, in a pension, in style, in quality, in yourself, in life. 27) Start saving young If you put aside more than you need, the leftovers become the savings. 28) Understand that your nancial needs change at dierent stages of your life A dierent focus, a dierent strategy, during dierent stages of your life. 29) You have to work hard to get rich enough not to have to work hard 12

They didnt watch television in the evenings. They worked their socks o. 30) Learn the art of deal making What do you have that others might want? 31) Learn the art of negotiating I dont want to sell and run. I want repeat business. I want a decent reputation. 32) Small economies wont make you wealthy but they will make you miserable Cutting out your daily coee isnt going to make you rich. 33) Understand that working for others wont necessarily make you rich - but it might Perhaps the stability of employment is a greater priority and you should stick with it. 34) Dont waste time procrastinating - make money decisions quickly The Samurai lived by a simple creed - no hesitation, no doubt, no surprise, no fear. 35) Work as if you didnt need the money If people think that you need the money it gives them power over you and that makes you insecure. 36) Spend less than you earn The biggest mistake is not knowing what you are doing, where you are nancially, and what is up ahead 37) Dont borrow money - unless you really, really have to If someone lends it, theyll want it back - plus 38) Consider consolidating debts Dont forget that good old stand-by - cash. 39) Cultivate a skill and itll repay you over and over again 13

Once you can do something no one else can do - or as few people as is possible, you can pretty well name your price. 40) Pay o loans and debts as a priority Debt bogs us down and holds us back. 41) Dont be too busy earning a living to make some extra money If we go to work solely for money it makes sense to earn as much as we can. 42) Save in big chunks - or should you? 43) Dont rent, buy So how can you own and not borrow, buy and not have a mortgage? 44) Understand what investing really means Remember that investments of any sort are a form of gambling no matter which way you look at it. 45) Build a bit of capital then invest it wisely No one will put anything into an empty hat. 46) Understand that property, in the long run, will not outpace shares. Any decent investment portfolio is going to include property as a matter of course. 47) Master the art of selling 48) Dont believe you can always win Remember that there are sharks out there. So dont bleed. 49) Understand how the stock market REALLY works 50) Only buy shares you can understand Cut the odds down as low as possible and only invest in or buy things you understand. 51) Use investment professionals, but dont be used by them 14

Most of them try hard, but in the end most of them fail to grow money any faster than the market, so dont pay them for trying. 52) If you are going to get nancial advice, pay for it Make sure any nancial advice comes from someone who carries membership of a suitable organisation that includes the very rich club. 53) Dont ddle But once you have decided to leap, get on with it. 54) Think long term Think of gaining prosperity as stalking a reluctant tiger. 55) Have a set time of day to work on your wealth strategy 56) Pay attention to detail Train yourself right from the word go to pay attention to the detail yourself. 57) Create new income streams The rich usually have several money making schemes going for them. 58) Learn to play What if ? Diversication is the name of the game. 59) Control spending impulses The rich know how to control their spending urges thats why theyre rich 60) Dont answer ads that promise get-rich-quick schemes - it wont be you who gets rich quick A fool and his money how did they get together in the rst place? 61) There are no secrets No one but you is going to make you wealthy. No one in the whole wide world. 62) Dont just read this - do something Changing direction is often hard; developing new character traits can be painful 15

8.3

Get Even Wealthier

63) Carry out a nance health check regularly Forgetting a debt doesnt ever pay it. 64) Get some money mentors Money mentors are people who have proved their nancial acumen by making a bit of money themselves. 65) Play your hunches Having a hunch, following a hunch, and going o like a loose cannon are not all the same thing. 66) Dont sit back Now is the time to strike, capitalise, consolidate. 67) Get someone to do the stu you cant Pick really good people and let them get on with making you prosperous. 68) Know yourself - solo, duo or team player I always need the steadying hand of a partner to curb some of my business excess. 69) Look for the hidden asset / opportunity The opportunities God sends do not wake up those asleep. 70) Dont try to get rich too quickly The longer you take to make your money, the more diverse youll be with investments and income streams. 71) ALWAYS ask whats in it for them Be suspicious of anyone and anything that could make inroads into your wealth. 72) Make your money work for you Never be satised with the interest rate youre getting. 16

73) Know when to let go of investments Perhaps you only invested green and now want mainstream or vice versa. 74) Dont chase bad luck runs If we can fathom our individual emotional tendencies, then we can take steps to anticipate and correct them. 75) Know why you should be able to read a balance sheet - and how A balance sheet has to balance 76) Be one step ahead of the tax collector There are many good people out there who will give you all the advice you need. 77) Learn how to make your assets work for you You begin to see endless possibilities for using your assets to make more money. 78) Dont ever believe youre only worth what you are being paid If you think you are always worth more it makes you restless, ambitious, keen to get on. 79) Dont follow the same route as everyone else If it all goes well and you are in a herd you can celebrate together - shared joy.

8.4

Staying Wealthy

80) Shop for quality I would cook a thin and sick-looking chicken with cheap white plonk and she would provide lobster and champagne 81) Check the small print Small print can cost you dear. Check it carefully. 82) Dont spend it before youve got it 17

buying today against tomorrows income, you will incur interest. 83) Put something aside for your old age - no, more than that! If you do stop earning you will still be able to aord the level of style, luxury and comfort you now enjoy. 84) Put something aside for emergencies / rainy days - the contingency fund. Personally Ive noticed the shrewd rich ones keep a safety deposit box with cash for emergencies as well. 85) You paid what for it? How to shop around Just be a bit cautious and dont go throwing money away needlessly. 86) Never borrow money from friends or family It is very bad manners to borrow from friends and family. 87) dont surrender equity Never give away voting shares to anyone. 88) Know when to stop Look, there has to come a time when enough is enough.

8.5

Sharing Your Wealth

89) Use your wealth wisely Those who abuse their wealth dont tend to stay wealthy for long. 90) Never lend money to friends or family unless you are prepared to write it o 91) Dont lend, take equities Asking for a convertible loan will sort the wheat from the cha. 92) You really, really cant take it with you 18

Not getting rid of it is known as wealth bondage. 93) Know when / how to say no - and yes 94) Find ways to give people money without them feeling they are in your debt. If you can give them money without all that stu being attached to it, you are doing well. 95) Dont over-protect your children from the valuable experience of poverty A monthly allowance is always a good idea. 96) Know how to choose charities / good causes Ive always had my doubts - and this is entirely subjective, entirely personal - about supporting a penguin. 97) Spend your own money because no one will spend it as wisely as you I have noticed that the successful rich dont hand over anything. 98) Take responsibility before you take advice And it doesnt have to be advice of the paid kind, the expert kind, the main-in-a-suit kind. 99) Once youve got it, dont aunt it Dont ever mention how much youve got, what you are worth or how much you earn. 100) Whats next? Pacts with the devil. Be someones mentor.

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9.1 9.2 9.3 9.4 9.5

Detailed Notes On Rules

Thinking Wealthy Getting Wealthy Get Even Wealthier Staying Wealthy Sharing Your Wealth

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