The Golden Rule of Personal Finance

Phil Ebiner
A free video tutorial from Phil Ebiner
Top-Rated Instructor, 2 Million+ Students
4.5 instructor rating • 128 courses • 2,012,680 students

Lecture description

In this lesson of the personal finance course, you'll learn our number one rule for being financially smart.

Learn more from the full course

Personal Finance Masterclass - Easy Guide to Better Finances

Your complete personal finance guide to understanding finances. Save more, invest smarter, reduce loans, retire earlier!

07:09:20 of on-demand video • Updated January 2018

  • You'll be the master of your own finances.
  • You'll know how to create a smart budget that helps you increase savings and reduce expenses.
  • You'll increase your income with a promotion, new job, side hustle, and online income.
  • You'll have a step-by-step process for reducing your loan and/or credit card debt.
  • You'll know the process for buying a house and saving up for a down payment.
  • You'll know how retirement works, how to save and invest for retirement, and how much you'll need to save and invest for a worry-free retirement.
  • You'll learn how to retire early and achieve financial freedom!
English [Auto] As you move along this course you're going to notice we come back to one thing over and over and over again and it's the golden rule of personal finance which is spend less than you earn and if you want to add a little bit of bonus. Spend less than you earn and then invest the difference. To me that's really exciting. That could mean that you hate budgeting or you want your fancy car or you like eating out every meal. Anything that we're going to talk about in this course you can break that rule as long as you're spending less than you make. And I'm sure you're saying we'll of course spend less than you are and that's kind of like saying you know to lose weight you should eat less and exercise more. But the problem is it's not obvious to most people. Debt is not only normal it's accepted. And if you're spending more than you earn you're never going to get ahead. At the end of the month do you have money to pay your bills and a little bit over. Or are you stretched to the end of the month. You don't know if you're going to have enough and are occasionally putting expenses on the credit card because you don't have enough. Most people not only spend what they earn. They spend much more than they earn they're building up balances on their credit cards and student loans and car payments and mortgages. If you make a habit of spending more than you earn you're guaranteeing you will not have a successful financial future. They say that personal finance is 10 percent math and 90 percent psychology. And I firmly believe that it means that even though we understand the concepts you know eat less to lose weight or spend less to save more money actually doing it is the hard part. And that's the goal of this course. We want to provide you concrete steps to get your budget in order. Spend less than you earn and secure your financial future by learning to spend less than you earn. You'll understand what it means to have freedom from debt and jobs. Job related stress and even car trouble say you broke down on the side of the road and you're out of money this month. That's a tremendous amount of stress trying to come up with the money to say fix your flat tire. Whereas if you have a little margin in your life you're spending less than you earn. You have a little cushion in your bank account. Unexpected emergencies like that are common and not a stressful experience. Now you may be saying there is no room in the budget. I can't make cuts anywhere. And in this course we're going to talk about the difference between fixed and variable expenses a fixed expenses is anything required just to maintain life sustenance it's a roof over your head it's food in your mouth it's transportation to get you to and from work. And then there are variable expenses that can kind of get Ingur intermingled and make it difficult to navigate the waters having financial margin in your life. Spending less than you earn means that money disagreements between you and your spouse are probably less frequent. You have a healthy relationship you are in a position to give. You can give generously to friends and family or charitable organizations and Lauren and I's marriage. We've learned that by giving up if you material possessions we instead gain a less stressful relationship life and a more sustainable future. And we want to share with you how exactly we do that.