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5 Takeaways from Richard Templar’s “Rules of Money”

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Richard Templar's "Rules of Money"

At the most basic level, the reason we all pursue, desire, and fiercely protect money is because of what we can do with it. Not necessarily anything else. In Richard Templar’s “Rules of Money”, he identified 10 things people most want to spend their money on, which are:

  • security
  • comfort
  • luxuries
  • mobility
  • status
  • influence
  • freedom
  • leisure
  • popularity, and
  • philanthropy

“Whether it’s some or all these things you’d like more of, you need to know how to go about generating greater wealth”, he says.

With a mix of old-school money advice and millennial nuggets, Richard Templar outlined in this book what he calls the Rules of Money. In this 5-part book authored in 2007, Templar explains that there is one reason some are wealthy and others are not. It’s because there are rules. Some understand it, and others don’t.

While he does not claim that these rules are the only ways to build wealth, he explains in 5 very easy-to-read parts how to make money and hold on to it. 

This article explains these parts in digestible, applicable pieces:

On Thinking Wealthy…

One thing that wealthy people have in common, is that they have nothing in common. They could be white, black, tall, short, fat, or thin. Money is not reserved for a select minority. Wealth can be yours, but it begins with challenging your perceptions of money, and the wealthy. What are your money beliefs? What is money to you? What does wealth mean to you? Set money goals, believe they are achievable, and prepare to work towards achieving them. Money begins in the mind.

On Getting Wealthy…

This is the part where you put in the work. Getting wealthy requires a lot of honesty and self-awareness. It also requires that you develop some soft skills like negotiation and discipline. Planning your finances, having emergency funds, deciding your attitude to risk. You may have heard some of these things, but the real question is, do you do them? Understand that your financial needs change at different stages of your life. You need a plan if you want to get wealthy. 

On Getting Even Wealthier…

Money begets money. Money also flies, just like time. If your plan after getting wealthy is to sit back and count your loot, then you’d lose that money faster than you got it. At this stage, you might need to get financial advisers around you. This is not the time to take your eyes off the ball, but a time to explore opportunities. Markets shift, fashions change, and products fade, so timing is crucial. Focus on building long-term income streams. Be insured. Don’t try to make more money too quickly. You may not have time to learn how to handle it, so you might end up spending it inappropriately.

On Staying Wealthy…

Now you have money, your focus is on keeping it that way. Shop for quality rather than price. Good products might be expensive, but they last long. Read the fine print. Plan for retirement. One surprise from life can make you broke again, so you need an emergency fund. Don’t surrender equity (for business owners). Know when to stop. That’s right. You need breaks sometimes. At this point, you have your money working for you, so you don’t have to work all day. Go on vacations. Give to causes that interest you, because what is money without a sense of fulfilment?

On Sharing Your Wealth…

Speaking of fulfilment, Templar explains that wealth is like a beautiful painting. “Sure you can hang it in your study and only you get to look at it, but you can also share it and let others look too.” Wealthy people are often seen giving huge sums to charity organizations or donating to causes that they support. It may seem unfair to share the money you have worked ever so hard for, but hear him out. If the successful, happy rich people feel at ease sharing their wealth with the needy, the weak, and the unfortunate, perhaps there’s a lesson there for all of us.

In Conclusion

The rules summarized in these five parts speak beyond paths to which we can afford the 10 things outlined at the beginning. Richard Templar’s “Rules of Money” speaks to behavioural and mindset changes we need to live by to build long-term wealth. I’d highly recommend that you read this book in its entirety to dissect these parts and take in the most applicable rules for you.

It’s never too late to build wealth. Start today


5 money Nuggets from The Intelligent Investor


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