Wealth: Rules of Money

There is more than one way to skin a cat, as they say, and there is definitely more than one way to get rich.

In the wealth creation game there is one simple rule - make sure that you get more money in than goes out; save more than you spend; spend less than you earn, and everything will be fine.

If you want to know whether something is good for you financially or not, then you need to know the simple rule you can apply that works in most cases. Ask yourself: "would you bank like it if I did x?"

Now, if you are accepted for a loan from a bank then that's great news for them - they are very profit making for banks (assuming you don't default). So, it's probably bad news for you to get a loan - and indeed it is - that profit comes from charging you much more to pay back the loan than the amount loaned.

Therefore always, always try to avoid taking out a loan. If you must take one out, shop around for the lowest possible total amount you have to pay back and with some flexibility built in to it. You might consider it boring, but when you consider it could save you hundreds of pounds then surely putting in one day's worth of research is worth it?

Another rule of making money is if it sounds too good to be true, then it is. Sadly there are people out there looking to exploit our greed or simple desparation for easy wealth. In general if you ever have any doubts with a money or financial product, then just walk away. If it seems too complex, then again walk away.

Another rule of money making: constantly review if you are getting the best deals and if not move. Usually to attract us a bank or financial institution will offer a better deal than existing customers get. The problem is after six months or a year these often expire and you are back on standard interest rates. When this happens don't be afraid to move again.