5 Money Rules Smart People Follow But Never Talk About
Money management is an art, and some people are simply better at it. But have you noticed? The smartest people rarely talk about how they handle their money. Why? Because real financial wisdom is quiet. In this article, I will uncover 5 secret money rules that smart people follow silently. These are not just theories but practical, real-life habits that can change your financial life too — especially if you are living in India where money culture is different and savings matter a lot.
1. They Pay Themselves First — Always
Let me tell you about Ravi, a 32-year-old software engineer from Pune. No matter how much he earns or spends, he always saves 20% of his income first. He considers this a non-negotiable rule. This habit has helped him build a corpus of over ₹15 lakhs in just 5 years without feeling pressure.
This rule is simple — save first, spend later. Automate your savings using recurring deposits, SIPs (Systematic Investment Plans), or PPF accounts.
Tip: Set up an automatic transfer from your salary account to a savings/investment account every month. Even if it’s just ₹1000, start it today.
2. They Avoid Lifestyle Inflation
Remember Anjali from your office who bought a new car after her salary hike? That’s lifestyle inflation. Smart people avoid this trap.
When people start earning more, they tend to spend more — bigger phones, better clothes, expensive restaurants. But financially wise people maintain a simple lifestyle regardless of income growth.
Example: Even after becoming a senior manager, Suresh from Delhi still travels by Metro to work because it saves him money and time.
Tip: Celebrate your salary hike by investing more, not spending more.
3. They Never Depend on One Source of Income
Smart people understand — one income is too close to zero. The recent pandemic taught us this lesson brutally.
Take the example of Priya, a teacher in Mumbai. During COVID-19, she lost her teaching job but survived easily because she had freelance writing gigs online and earned passive income from a YouTube channel.
Action Plan:
- Start a side hustle.
- Invest in stocks for dividend income.
- Learn a new skill to earn online — writing, graphic designing, coding.
4. They Buy Assets, Not Liabilities
This rule comes straight from the book “Rich Dad Poor Dad” by Robert Kiyosaki.
Assets make you money — like mutual funds, stocks, rental property. Liabilities take your money — like EMI on a car, latest gadgets, unnecessary subscriptions.
Example: Ramesh from Lucknow bought a small shop with his savings and gave it on rent. The monthly rent of ₹15,000 pays his house expenses easily.
Tip: Before any big purchase, ask — Will this make me money or take my money?
5. They Stay Away from Bad Debt
Credit cards and personal loans are easily available today. But smart people avoid debt unless it’s for an appreciating asset like a house.
Example: Meena from Hyderabad uses her credit card for rewards but pays the full bill before the due date to avoid interest.
Tip: Debt is not bad — bad debt is bad. Don’t take loans for luxury items or travel. Use loans only if it will help in creating a future income.
Conclusion: Quiet Wealth Wins the Race
The loudest person in the room is often not the richest. Real financial success comes quietly. Follow these 5 money rules with discipline. You don’t need to show off. Let your wealth speak silently over the years. Start small, stay consistent, and build a peaceful financial life for you and your family. The future belongs to those who prepare for it today.
FAQs
1. What is the first rule of money smart people follow?
They save first and spend later. This habit builds wealth over time.
2. What is lifestyle inflation?
Spending more when income increases is called lifestyle inflation. Smart people avoid it.
3. What are good assets to buy in India?
Mutual funds, stocks, gold, property, and side businesses are good assets.
4. How to avoid bad debt?
Don’t take loans for luxury or temporary desires. Use credit only for investments or emergencies.
5. How to create a second income?
Learn a skill, start freelancing, invest in assets, or create digital content like blogging or YouTube.
6. What percentage of income should I save?
Start with 20% if possible. But even saving 10% is better than nothing.
7. Is a car an asset or liability?
A car is a liability because it depreciates in value and needs maintenance.
8. How to control expenses?
Track expenses monthly, set budgets, avoid impulsive shopping, and use cash instead of cards.
9. How do rich people manage money silently?
They automate savings, invest smartly, avoid unnecessary loans, and focus on long-term wealth creation.
10. Can anyone become financially smart?
Yes, financial wisdom is not about income — it’s about habits and discipline anyone can learn.
