What are the four golden rules of money everyone should know?
At McMillans, we believe that building financial strength doesn’t need to be complicated. In fact, there are four timeless rules that can help anyone—no matter their income or life stage—make smarter decisions with their money.
So, what are they?
1. Spend less than you earn
You can’t build wealth if you're always living paycheck to paycheck. Spending less than you earn is the cornerstone of financial wellbeing.
The first step? Track your spending. Know where your money is going each week and build a budget. Then commit to setting aside a portion of your income for savings—even a small amount, done regularly, adds up over time.
2. Protect your capacity to earn
Your greatest financial asset isn’t your car, your house, or your bank account—it’s your ability to earn income.
What would happen if an accident or illness stopped you from working? Could you still pay the mortgage or fund your children’s schooling?
You must put a safety net in place to protect your income through insurance. This ensures your lifestyle and long-term goals stay on track—even when life throws you a curveball.
3. Pay off non-deductible debt first
Credit cards. Personal loans. Home loans. If you're paying interest and not receiving a tax deduction, that debt is costing you more than you think.
You should prioritise repaying non-deductible debt first to free up cash and reduce unnecessary interest expenses. That’s money you could be saving or investing elsewhere.
4. Make your money work for you
Your money shouldn't sit still—it should be working just as hard as you are.
You will grow your wealth faster when you invest smartly. Consider options like:
Cash: Earn interest through savings accounts or term deposits.
Shares: Generate income through dividends.
Property: Earn rental income and potential capital growth.
Business: Invest in a business that creates ongoing profit.
Is your money working hard enough? If not, it might be time to reassess.
Let’s put these rules into action
At McMillans, we help you take control of your finances, protect your income, reduce your debt, and build a smart investment strategy—all tailored to your circumstances.