10 Principles for Financial Prosperity: A Guide to True Wealth

Are you tired of feeling jealous over what others have?

Do you want to achieve genuine financial prosperity? You're not alone.

In today's society, coveting what our "neighbors" have is common. But there's a better way to approach finances and find true abundance.

This week, we'll explore ten essential principles for financial prosperity that I wish I had known earlier.

These insights will help you shift your mindset from scarcity to abundance and from being a slave to money to becoming its steward.

The Foundation: Two Essential Thoughts

Before we dive into the principles, let's establish two fundamental ideas:

1. "Don't wear yourself out getting rich." (Proverbs 23:4)

2. "Don't love money." (1 Timothy 6:10)

These timeless pieces of wisdom remind us that true prosperity isn't just about accumulating wealth but about finding balance and contentment in our financial lives.

Steward or Slave: Your Relationship with Money

There are two positions we can have concerning money:

1. You can be its steward: Operating from abundance and sufficiency, you rule over your money. You're not worried about getting more and are generous with what you have.

2. You can be its slave: Operating from lack and insufficiency, you're ruled by your money. You're constantly worried about not having enough, so try to get as much as you can as fast as possible.

Which position do you find yourself in? Let's explore the principles that can help you become a steward of your finances and achieve true prosperity.

10 Principles for Financial Prosperity

1. Set Pre-determined Investing Rules

When I first started investing, I didn't have rules. I relied on assumptions that everything would go right. The problem with this approach is that it leaves room for ego, emotion and bias to cloud our judgment.

By setting clear investing rules, you can make more objective decisions and avoid costly mistakes.

2. Set Pre-determined Spending Rules

To achieve financial prosperity, it's crucial to:

• Spend less than you make

• Establish your reserves

• Consider the 80-10-10 rule (80% for living expenses, 10% for savings, 10% for giving)

• Don't worry about keeping up with the Joneses

3. Create a Personal Board of Advisors

Establishing a board of trusted advisors can help you stay accountable for investing and spending.

They can assist you in creating and sticking to your financial rules, providing valuable insights and perspectives along the way.

4. Operate an Up-to-Date P&L

Understanding your important numbers is crucial for financial success. Keep track of how much you're making, spending, and investing. This knowledge will empower you to make informed decisions about your finances.

5. Operate an Up-to-Date Personal P&L

Do you know your bottom line? Track what's coming in and going out, and operate according to your established rules. This practice will give you a clear picture of your financial health.

It seems simple, but most entrepreneurs I speak with don’t have this.

6. Don't Avoid Financial Obligations 😅 

Face your financial responsibilities head-on, including:

• Taxes (yes, even the dreaded ones!)

• Any payables

• Credit card payments

Avoiding financial obligations doesn't keep you safe; it only prolongs the stress and potential consequences. Take care of business and face the facts.

I’m a classic avoider. My therapist(s) tell me it is from childhood issues.

7. Live from Contentment

True joy is discovered in realizing you don't need more than you need. Contentment is something that even many wealthy people haven't experienced. It’s bold, so reread it. ;)

Remember, "more" will never honestly fill you.

8. Don't Make Purchases to Support an Identity Gap

Buying things to secure a certain status level is ineffective and never truly satisfying.

Many millionaires and billionaires still feel insecure and unloved. Why? Because lasting fulfillment comes from within, not from material possessions.

9. Be Generous with Your Finances

As the saying goes, it's better to give than to receive. Give without expecting anything in return, and consider donating at least 10% of your earnings to a good cause.

Generosity helps others and brings a sense of purpose and fulfillment to your financial journey.

10. Slow and Steady Wins the Race

Don't worry about how "slow" you're progressing financially. Instead, focus on:

• Doing what you enjoy

• Maintaining holistic health (in your relationships, emotions, physical well-being, and spirituality)

• Avoiding unhealthy comparisons with others

Remember, good things take time and most people you're comparing yourself to have problems you wouldn't want.

Putting It into Practice

I'm currently in the process of practicing what I preach. This includes:

• Minimalizing my life and selling things that don't align with my values

• No longer owning things for what they represent

• Aiming to live entirely debt-free for true freedom

Prosperity doesn't require excessive wealth. It means having the time and space to be with those you care about. When you seriously consider it, you might be closer to that position than you think.

Remember, true financial prosperity is about more than just accumulating wealth—finding contentment, purpose, and balance in your relationship with money.

What are your thoughts on these principles? Is there anything you would add or change? I'd love to hear from you!

That’s it for this week, y’all.

Much love!

Chris