Book Summary9 Rules to Dominate Your Money and Learn What 67% of Adults Don’t Know, by Finley Lewis

1-Page Summary1-Page Book Summary of 9 Rules to Dominate Your Money and Learn What 67% of Adults Don’t Know

The Basics of financial management and currency.

Grasping the evolution and fundamental reasons behind the existence of currency.

This section provides a concise analysis of the evolution from tangible assets to representational instruments for trading value. Lewis emphasizes the importance of a comprehensive grasp of the development of currency to fully comprehend its essential functions within contemporary economies.

Money evolved from physical commodities to symbolic instruments for commerce.

Lewis explores the evolution of commerce, highlighting a period when commodities such as animal pelts, barley, and wool were exchanged in place of monetary currency. However, this was problematic because establishing a universal value for every item a person could offer was difficult. Locating a cooperative counterparty was often a challenge. As time passed, individuals increasingly depended on gold, valuing its permanence, divisibility, and portability, making it a trusted standard for commerce and exchanges. In this system, the value was agreed upon by everyone. Governments ensured the safekeeping of precious metals by holding them in secure locations and providing paper documentation that signified possession, exchangeable for the metals when desired. The gold-based foundation of the monetary system ceased to exist in 1973.

The worth of currency in circulation is entirely dependent on the trust placed in the government's assurances. Money's worth is inherently derived from a shared understanding that it acts as a means to acquire goods and services.

Money functions as a means for trading, measuring value, and preserving wealth.

Lewis emphasizes that money serves chiefly to simplify transactions by eliminating the need for bartering or direct exchange. Money enables fair trading and transactions by acting as a widely recognized and dependable measure of value, thereby playing the role of a go-between during the process of trading. Money functions as a consistent metric to determine the worth of various products. Money also serves as a means to preserve and utilize value at a later time, which facilitates strategic planning and the ability to postpone immediate rewards.

Understanding the significance of teaching young people about managing finances.

This part underscores the critical importance of equipping the youth with financial knowledge, especially considering the deficiencies in the educational infrastructure. Lewis contends that educational curricula ought to include fundamental principles related to financial stewardship, akin to other critical subjects. You should prioritize your financial learning, regardless of whether those around you possess financial acumen.

Lack of financial education in schools leaves many young people unprepared

Lewis emphasizes the critical role that financial literacy plays in daily living, while noting that a mere few states mandate financial management courses for high school students. The perceived shortfall in the educational framework is that it fails to equip young individuals with financial knowledge, which is essential for establishing a foundation for future economic stability. Many students lack proficiency in crucial financial practices, including the development of a financial strategy and the growth of their savings. Teenagers frequently...

9 Rules to Dominate Your Money and Learn What 67% of Adults Don’t Know Summary Strategies for earning money, building up savings, and enhancing investment portfolios.

Identifying and cultivating multiple streams of revenue.

Lewis recommends expanding your financial base by creating multiple streams of revenue. Expanding your sources of revenue beyond your primary job's salary can bolster your economic stability.

Engaging in part-time employment and exploring business opportunities.

Lewis recommends that young people create steady income flows by securing jobs, initiating business endeavors, or making monetary investments. They should investigate strategies to enhance potential for expansion, be it near their own dwellings, close to a friend's abode, at their place of study, or in their neighborhood. Young individuals have the opportunity to undertake numerous tasks or provide assistance to family members with different responsibilities around the house. Once they reach a suitable age, securing part-time employment is an option, with Lewis suggesting roles like server or cashier, carrying clubs for golfers, or assisting a content creator. He also recommends that teenagers consider starting their own businesses where they take on the role of CEO. He emphasizes that an individual of sufficient age to legally enter into contracts can...

9 Rules to Dominate Your Money and Learn What 67% of Adults Don’t Know Summary Budgeting, Expense Management, and the minimization of monetary obligations.

Developing a sound budgeting system

The author emphasizes the significance of establishing a strong budgeting system to manage expenses and boost savings. Lewis highlights that the predominant reason many adults are trapped in a pattern of receiving and instantaneously expending their earnings stems from insufficient monitoring of their monetary expenditures.

Monitoring your spending involves differentiating between essentials and desires.

Lewis encourages teens to treat saving money as a game, where they try to win every month by saving more than the previous month. Young individuals can still master the discipline of adhering to a financial plan, even when unforeseen expenses arise. The essence is in charting a course from your current financial position to the financial targets you aspire to reach. The method commonly used for financial management is frequently referred to as the "50-30-20" approach. Dedicate 50% of your earnings to essential expenses, allocate 33% for personal spending, and reserve 20% to enhance your savings. Essential expenses include items such as phone bills, fuel for your vehicle, public transportation costs, and the purchase of educational...

9 Rules to Dominate Your Money and Learn What 67% of Adults Don’t Know Summary Tax Planning and Credit Building

Understanding the purpose and importance of taxes

This section discusses the often-dreaded concept of taxes. Lewis highlights the importance of adding to public funds, which in turn bolster community services. He advises budding entrepreneurs to grasp how taxes correlate with earnings and to seek legitimate methods for minimizing their tax obligations.

Recognizing the government's role in providing public services

Finley Lewis references the well-known adage attributed to Benjamin Franklin, which states that the only sure things in life are death and taxes. Abide by legal requirements by remitting solely the taxes that are due. Public services such as law enforcement, fire protection, education, infrastructure, and recreational areas are funded through taxation. Failing to fulfill your tax obligations can lead to severe repercussions, such as monetary penalties, legal fines, or incarceration.

Exploring legal tax minimization strategies

Lewis emphasizes the necessity of comprehending the tax responsibilities associated with your earnings. A portion of your income is set aside for taxation when you're employed. A percentage of your income is withheld by your...