Dan Martell: Here’s the 9 Money Rules the Top 1% Follow

Dan Martell, a self-professed serial entrepreneur, business coach, and investor, has literally worked himself from debt up to a multi-millionaire. Now, he’s using his experience to help others.
Martell is very upfront about how in his 20s, he was broke and living a lifestyle he wasn’t happy with. He made a series of changes that not only improved his net worth, but his overall lifestyle, too.
On his YouTube channel, Martell explains how he—and other wealth 1%ers—achieve and maintain this level with 9 specific money rules.
Act Your Wage

Acting your wage, Martell explains, means to be responsible with your money, because what you make isn’t the key to your wealth, it’s your spending habits.
Martell says he automates his pay. It goes where it needs to go and then he pays himself, but he doesn’t overpay himself. He lives on a very small part of his income.
The 10% Rule

The 10% rule doesn’t mean invest 10% of your income, but rather live off that amount. Martell says it should be the goal, not the standard, but acknowledges on a lower salary, it’s not quite possible to do so.
However, it’s a rule for the 1%, because that other 90% begins accumulating and can then be put to work.
Prioritize Investments

Martell explains the difference between the income classes and how they perceive making money. For example, lower-income people make money so they can purchase things, where the middle-class uses their income as a basis for getting loans and sinking money into depreciating assets.
The wealthy take a different approach and invest the money they make into making more money.
Build a Nest Egg

This is actually one of the critical steps most financial experts recommend, having a nest egg, or an emergency fund as some call it. That nest egg will get you through tough times.
Martell’s goal is to set aside at least six months of expenses in liquid assets. Not having this can result in desperate moves that cause a downward spiral, leading to more financial woes in the long run. Having six months’ worth of expenses gives you time to reset and find another opportunity to right the course.
Don’t Overextend Yourself

Debt is one thing many Americans have, but the wealthy do not. And if they do, it’s minimal at best. By taking on debt, we tend to overleverage ourselves and pay more for things than we would if we bought them outright.
Credit card debt is the worst, according to Martell, who says the average interest rate is 22%. Holding onto this debt, rolling it over month to month, makes it difficult and takes longer for people to achieve wealth. Instead of financing, he says to go make the money you need to buy what you want.
Invest in You

One of the most sound investments you’ll ever make is in yourself. That means acquiring new skill sets that allow you to grow and flourish, and create wealth. Martell advises people to delay spending money on their lifestyle and rather invest it in learning.
He says he invested around $1.7 million in himself, in coaches and business seminars, in learning. While he says that money could’ve earned him extra on the stock market, it gave him invaluable resources—knowledge—he was able to weaponize and use to grow his empire.
Invest in Your Area of Competency

It’s very easy to get excited about an opportunity, but if you’re not sure what you’re investing in or taking on, you could be putting the entire investment at risk.
This is why Martell says to stick with the known and evaluate the risk with the return using the four-quadrant method. The goal is to avoid any investments with a high-risk, low-reward outlook and maximize investments that are low-risk, high-return. In essence, invest in the business you know.
Treat Your House Like a Business

This strategy helps keep people on track. For example, every home has a profit and loss, Martell explains. Your income and expenses should be measured carefully, and you should make changes to ensure you always have a profit, which would be money saved.
The wealthy typically have someone manage the money for them, so they don’t have to think about it. Their expenses are paid and they can live a more simplistic lifestyle in that aspect.
Money Is Not the Goal

This might seem out of place considering, well, the goals have to do with achieving wealth, but ultimately money isn’t the goal, but rather a tool. Martell advises people to use their wealth to help others.
He advises people to use money “as a resource to create, to expand, to serve other people,” and above all, to grow. Otherwise, having wealth is equivalent to being lonely.
Source: 9 specific money rules.