5 Money Rules I Live By (That Have Nothing to Do with Avoiding Lattes)

Money advice is everywhere: Spend less. Save more. Invest early. Stop buying lattes. (Please… We can keep the lattes!)

As a financial advisor, I spend a lot of time helping people make smart decisions with their money. But financial planning isn't just only investment portfolios, retirement projections, and tax strategies. It's also about the everyday choices that determine whether your money is working for you—or whether you're wondering where it all went.

I've developed a few personal money rules that help me stay on track. They're not necessarily the rules everyone should live by, but they're the ones that work for me.

Here are five that I practice in my own financial life.

1. No Credit Card Debt—and Freeze My Credit

I love a good credit card points strategy as much as the next girl. But there's one rule I don't bend: I don't carry a credit card balance.

Just because you can charge something doesn't mean you can afford it. It's easy to pull out a credit card and tell yourself you'll figure it out later. But if you're routinely charging things you don't have the cash to pay for, you're borrowing from your future income to fund your current lifestyle. And that can become an expensive habit, especially when interest starts compounding against you instead of for you.

My rule is simple: If I charge it, I have the money to pay it off. I want my credit cards working for me, not the other way around.

I also take credit protection seriously. I keep my credit frozen when I'm not actively applying for new credit. A credit freeze is free and makes it harder for someone to open new credit accounts in your name. It won't prevent every type of identity theft, but it's a simple layer of protection worth having.

Want the details? Check out my article, The Big Chill, for the lowdown on freezing your credit.

2. Pay Future Me First

Before I decide what I can afford to spend today, I make sure I've taken care of future me.

That means prioritizing retirement savings, contributing to my Health Savings Account (HSA), and using a backdoor Roth IRA strategy. These aren't accounts I fund with whatever happens to be left at the end of the month. They're part of the plan from the start.

I invest my HSA with retirement in mind rather than automatically using it for today's medical expenses. When used strategically, an HSA offers a powerful combination of tax advantages that can make it a valuable part of a long-term financial plan. I've written more about the HSA's tax advantages in my article, The Triple Crown.

The bigger principle is this: I don't wait until the end of the month to see what's left over for savings. I prioritize future me before current me gets to spend.

Future me deserves a seat at the table, too.

3. Pay My Savings Account First—and Keep Lifestyle Creep in Check

This is where I get intentional about how much money actually lands in my checking account.

At the beginning of each year, on my New Year’s Retreat, I decide what I want my monthly spending budget to be. Then I set up an automatic transfer from savings to checking to fund that budget.

Here's the part I really love about that system: When my compensation increases, I don't automatically let that extra money flow into checking. It goes into savings instead.

Why? Because it's remarkably easy to spend more simply because you earn more. A few upgrades here, a few extra dinners out there, and suddenly your higher income hasn't done much to improve your long-term financial picture.

I prefer to decide in advance what I want my lifestyle to cost—and let my savings grow as my income grows.

Plus, I have a threshold for how much I want to keep in cash savings. When that account exceeds my target, the excess can move into longer-term investments rather than sit in cash indefinitely.

It's a system that lets me enjoy my money today while building wealth for tomorrow. And because the transfers are automatic, I'm not relying on myself to make the right decision every single month.

Want to create your own version of this system? My article on setting financial goals and building a savings-first budget is a great place to start.

4. Track My Spending Before Things Go Off the Rails

I don't just look at my spending at the end of the month. I check in at least weekly.

Why? Because by the time the month is over, the money is already spent.

A weekly check-in gives me the opportunity to course-correct while there's still time to do something about it. Take my “Out to Dinner” budget, for example. Some months, things start careening off the rails. A dinner here, a dinner there, and suddenly I'm looking at a number that's considerably higher than I intended.

So what do I do? I make a decision. Maybe I cook at home a little more. Maybe I adjust another discretionary expense – like pushing that facial to next month.

The point isn't to feel guilty about spending money. It's to be aware of it—and to make intentional choices before a small budget overrun turns into a bigger problem.

You don't need an elaborate spreadsheet or a complicated budgeting app to do this. You just need a system you'll actually use and the willingness to look at the numbers.

5. Don't Let Anyone Else Define Your Version of Success

It's surprisingly easy to get caught up in what you think you're supposed to want financially.

At one point, I found myself thinking I should look into buying a second home. After all, isn't that the next step? It seemed like so many people around me were doing it that I started to wonder whether I should be, too.

But when I actually stopped to think about it, I realized something: I didn't want a second home that I visited over and over. I wanted to see new places, explore different cultures, and keep discovering the world.

A second home might be the perfect investment in happiness for someone else. For me, it wasn't the goal. And that realization matters, because the financial decisions we make should reflect the lives we actually want to live—not the lives we think we're supposed to want.

The Bottom Line

My money rules aren't about being perfect. They're about having a system that helps me make good decisions consistently—and gives me the freedom to enjoy the money I've worked hard to earn.

Your rules might look different from mine. That's okay. The best financial plan is one that reflects your goals, your priorities, and the life you want to live.

Want to establish some money rules of your own? I'd love to help you build a financial plan that works for you. Reach out to me at lobrien@xmlfg.com so we can discuss further.

Disclaimer

These are the personal money rules that work for me, not universal recommendations. Your financial circumstances, goals, and priorities are unique, and a strategy that makes sense for me may not make sense for you. This communication is for informational and educational purposes only. No content or reference is intended to be a recommendation for the sale or investment in any product, strategy or service nor should it be perceived as individual advice. Please seek the advice of a financial advisor regarding your particular financial situation. XML Financial Group and its Wealth Advisors are not licensed tax or legal professionals. These materials are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws.  Individuals should consult their personal tax or legal professional regarding tax filings, such that may be required for certain trusts, retirement and ERISA plans, and any tax- or legal-related investment decisions. Investment advisory services offered through XML Financial Group. Securities offered through the affiliated broker-dealer XML Securities, LLC, member FINRA / SIPC. Refer to important disclosures. Check the background of firms and professionals at IAPD and FINRA’s BrokerCheck. Visit xmlfg.com for more information.

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