6/1/2019 The 20 Rules of Money - Patrick Bet-David

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Think about this. In your entire lifetime, how much money has gone through your hands? Let me
explain to you what I mean by this. Maybe you made $73,000 last year as a 28-year-old. And you
got your rst check at the age of 14 for $100.00. Add everything up from that rst check until
today. You’ll come up with a number. It could be $493,000 or $1.9 million or $6.3 million,
depending on who is reading this. The question is how much is left in your wallet? Truly. How
much is in your wallet? Not your credit card limit, but how much savings do you have left? If you’re
unhappy with the answer, the reason is very simple. It’s because you don’t know how to play the
money game. It’s as simple as that. So in this video and article, I get into the 20 rules of money.

These are the rules of money that I’ve followed. They’re based on a lot of mistakes I’ve made
because there was a point in my life where I made money and there was nothing left in my pocket.
So what I’m telling you is based on my experiences.

Here are the Rules of Money

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The 20 Rules of Money

#1: It's a Game

Rule #1 is the most important one,  and it's the one you have to buy into immediately. It's very
simple. You may want to ght it, but regardless of what you do, it's a rule. And the rule is that
money is a game. The great thing about any game is that no matter what game you play, you
eventually get good at it. If I've never played chess, and you've played it 100 times, you're
probably going to beat me. If I've played Monopoly 1,000 times and you've played it three times,
I'm probably going to beat you. So the great thing about the money game is that it can be learned.

#2: Don't Be a Hater of Money

Next, don't be a hater of money. If you hate money, you'll never get money. Why? Because money
doesn't like haters. If you constantly say things like, "Money doesn't grow on trees" or "Rich
people are this or that," money responds by saying, "You're right!"

It's almost like if you go on a date with an attractive girl, and you tell her you don't like attractive
girls that don't know a lot about philosophy. You say that all they care about is their looks, doing
makeup, and working out. The girl's response is, "Dude, I put on makeup and I work out every day
to stay in shape. But I also like other things in my life. But you know what? You're right. You're not
attracted to me and I don't like you." She then goes and nds another guy that says, "I like a girl
that takes care of her body and skin, and puts on makeup. I like a girl that works out ve days a
week." She's attracted to that guy.

So keep that part in mind, and don't be a hater with money.

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#3: It's a Doubles Game

Number three of the rules of money is that money is a doubles game. Listen, you could stop
reading right now, as long as you understand this.

The entire game of money is about doubling your money. What do I mean by double your money?
Let me explain it to you this way.

If you have $1,000 cash in your bank account, you are 10 doubles away from having a million
dollars. You're ve doubles away from $32,000, 13 doubles away from having $8.192 million, and
14 doubles away from $16 million dollars. How soon can you double your money?

That's it. It's a doubles game. Can you take that $1,000 and double it to $2,000 in the next year?
Now that it's $2,000, you're nine steps away from a million dollars. If you already have $100,000
in your account, then you're three to four doubles away from a million dollars. Building wealth is a
piece of cake when you understand the doubles game.

Risk Tolerance and Horizon

Now that you have the basic concept, the question comes down to two things, your risk tolerance
and your horizon. Your risk tolerance depends on your age. If you're 65, your risk tolerance is
lower than if you're 22. Horizon has to do with time. What is your time horizon? The time horizon
could be, "I want to have a million dollars by ten years from now." Great. If you want to have a
million dollars by 10 years from now, rst start with what do you have right now. Then you play
the doubles game. For instance, if you have $17,000, you'd ask how many doubles do you need to
get to a million bucks. From there you can determine a time goal for each of the doubles to meet
your goal within 10 years.

It's a simple game, as long as you know the amount you have, the amount you want, and your risk
tolerance, and time horizon.

To get a free "Doubles Game" worksheet, ll out the form below. 

Fill Out Your Name and Email Below to Get Your Free PDF

First name Email address

Submit

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#4: Seduction

Let me explain to you about seduction. Money likes to be seduced. Money's attracted to seducers.
Just like a woman doesn't like a desperate man, money doesn't like desperate people. Money's not
attracted to desperate people that want it so bad because they want to show it off to everybody.
No, no, you need to seduce money. When you do, all of a sudden money will say, "Ooohhhhh, I like
this guy, I like this girl. Oh my gosh! I'm turned on by you."

Don't let money seduce you. You seduce money. Once you learn the seduction game with money,
all of a sudden money starts coming from all over the place to you, because money's turned on by
people that know exactly what they're doing. By the way, the more learn to seduce money, you'll
get better at this game as well.

#5: Timing

Listen in here for my thoughts on the important role that timing plays when it comes to money
rules.

#6: Boredom

Number six of the rules of money is boredom. Let me explain what boredom means. Money needs
to be moved. Okay? Again, if a girl is bored with you, she leaves you, because you're too boring.
The same is true for men. When people get bored, they leave. And money doesn't like to be bored.

What do I mean? If money stays in a checking account, the money goes to somebody that knows
how to use it. Money doesn't like to stay somewhere where it's not working. So it goes to
someone else that knows what to do with money. So you have to make sure that money's always
moving for you, working for you, and doing something to create more money for you.

#7: Secret Account

The next of the rules of money is to have a secret account. You always have to have a secret
account.

What's a secret account? It's an account no one else - including your spouse, parents, best friend,
siblings - knows about.

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A secret account is a crisis account and could be cash. It's an account that's sitting somewhere
that no one else knows about. I know you may say, "Pat, you talked about boredom." But this is a
completely different story. You have to have a crisis account that's not your emergency fund.

A secret account is what saved my business when we were going through a dif cult time. The
company's checking account went down to $13,000, and I had payroll, commissions and
everything to pay out of it. The crisis account that I had is what saved us. No one knew about it.
That money showed up, I put it back into the business, and we lasted through the tough times. So
you always need to have a secret crisis account.

#8: Don't Fly First Class

Next, don't pay to y rst class until you have $10 million in the bank. I see so many people
spending $2,000 on a ight when they can spend $400. Listen, I'm 6'4" and weigh 240 pounds,
and do you know how many times I've paid rst class? Zero. I don't pay rst class. Other people
pay for my rst class, but I don't pay for rst class. I've own rst class many times because I have
miles, or people pay for my ight. But I don't pay for rst class myself.

Why is that? It's because I did the math. Obviously, I can afford to do it, no problem. But here's
how I did the math. If I pay $2,000 for a rst class ight and I can get on the same ight for $500,
that's $1500 more I'm paying for the ight. If I y nine times a month, that's a $13,500 monthly
difference. Do you know what I can do with $13,500? That's four employees or marketing or
expansion. Over a year, it's $162,000. Why would I waste that money? That's an executive I could
bring in, or two incredible employees. So I don't pay rst class.

Once you have $10 million in the bank and you want to do it, great. At that point you may want to
buy a private jet, but don't pay for rst class until you get to that point.

#9: Comp Plan

The next of the rules of money has to do with your comp plan. Listen in here as I explain what I
mean by comp plan.

#10: End of the World Mentality

The next of the rules of money is end of the world mentality. Listen, CNN, MSNBC, Fox, Suze
Orman, Dave Ramsey and others are all paid to sell crisis. Why? Because you have to be ready for
a crisis. So a lot of times people are fearful, and think it's the end of the world. For example, in
2008 when the market crisis took place, everybody started pulling their money out. At the time,
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the Dow Jones was down to 6,000 something. It's at 21,000 points today. Imagine if you left the
money in. How much compounding money was lost simply because people thought it was the end
of the world?

You have to learn to manage the times when 90% of the world thinks it's the end of the world. You
have to be ready for those times. So how do you do that?

Let me explain. I was part of the community that said it's always the end of the world. Then I
realized how you become wealthy during those times. In the times when people say it's the end of
the world, do you know who wins? The ones that have cash. That's why it's so important to have
cash set aside. And I'm not talking boredom money. I'm talking about having cash said aside so
that when it's the end of the world, you can buy stuff.

Crisis Makes Some People Wealthy

Every time crisis happens, a LOT of people become wealthy. Why? Because everything's on sale
when there's a crisis. People sell exotics because they can no longer afford them. People sell
artwork for 1/5 of the price and homes for 1/2 of the price. All kinds of things are for sale when
there's an end of the world type of mentality.

So it's important to have a strategy for this time. Some say the markets will tank again in the next
two to three years. I don't know if that will happen, but what I do know is that they'll tank in the
next 20 years. And you have to be ready for it because there will be opportunities, if you're
prepared.

#11: Study Your Politicians

Next, study your politicians, especially your president. Here's why. You have to know the
philosophies of and what the politicians in your nation and local community are going to do. For
example, if their philosophy is to do heavy-duty taxing, you need to adjust accordingly. If their
philosophy is to cut down taxes, you need to adjust accordingly.

People ask me, "Pat, what should I do with Trump?" Start a business! Taxes are being cut. So go
make your millions of dollars in the next four years, and if it's eight years, go make your money.
Adjust. Everything's about adjustment. But you have to know the philosophies of your politicians
and adjust accordingly.

#12: Study Smart Investors

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Next, study smart investors. For instance, you should read everything Warren Buffett puts out.
Every single thing. Read all his books, because as you do, he'll teach you his way of thinking, his
mindset.

People ask, "Why did Warren Buffett spend $35 million to buy silver six years ago? And why does
he stay away from technology?" The thing you have to respect about Warren Buffett is that he
sticks to a philosophy long enough until it works. So study smart investors.

#13: Play Your Game

Number 13 of the 20 rules of money is to play your game. Don't compare or play someone else's
game. Play your game.

Let me explain. Let's say that when you play the doubles game, you're at $8,000. And let's say your
cousin is at $4,096,000. Or let's say your friend is at $128,000. Why are you comparing yourself
to them? You need to play YOUR doubles game. They are four or more doubles ahead of you, so
it's not the same game.

You can't say, "I'm going to play my game at the level with the other guys" because when you do
that, you make reckless decisions and you may lose a double. You don't want to lose doubles.

It's important not to go backwards, and any time you focus on the people ahead of you, you may
go backwards. So focus on your game, your strategies, and your time horizon. Focus on your risk
tolerance, and play according to that game.

Your vision may not be to be a billionaire. Your vision may not be to do something very big.
Perhaps your vision is not be a deca-millionaire, but instead to someday have $2 million. That's all
good. Play to that game. And put a plan to it. But don't constantly compare yourself to other
people.

And by the way, if you didn't ll out the form under point three to get your doubles game
worksheet, put your name and email address in the form below. And when you ll out the doubles
game worksheet, be sure to have your game, instead of someone else's in mind.

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Fill Out Your Name and Email Below to Get Your Free PDF

First name Email address

Submit

#14: Index

The next money rule is index. Listen in here to see what I mean by index.

#15: Befriend Money Makers

The next of the 20 rules of money is to befriend money makers that you trust. Here's why. If
you're around other people that know how to make money, you're going to make money. If you're
around people that don't make money and don't know how to make money, you won't make a lot
of money. That's just how things work.

It's also important to know who you're going into business with. Sometimes things seem too
sweet or sexy, but you don't know the person. It's important for me to know who I'm going to do
business with. I hire very, very slowly and re very fast. The moment I'm done with somebody,
boom, they're gone. It's no problem for me to re four people in a day. If things aren't in the right
place, we need to move on.

Especially for higher up positions, I hire very slowly. I travel with the person so I get to know them.
So whoever you're going to do business with, befriend them. Travel with them. If somebody's
extremely wealthy, go to dinner with them. Get to know their spouse, and how they are around
their kids. See their standard of living, behavior, and discipline and if you like what you see,
determine to do business with them.

#16: Diversi cation is for Sissies

The next money rule is that diversi cation is for sissies. So if you're a sissy and your risk tolerance
is very low, it's okay. It's okay to be a sissy. A lot of people are sissies. But if you truly want to
create wealth, and you wonder why you don't have a single penny after working for 17 years, you
have a problem.

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What's the problem? Diversi cation is a great concept for nancial advisers to sell to people that
want to play things safe. If you're watching this and you're 73 years old, diversi cation may be
good for you. Or if you're 62 years old and you've already hit your numbers, your risk tolerance is
lower because your time horizon is lower. In that case, you're playing a different game.

I'm mainly talking to the people that are in the offensive mode of their lives. I'm talking to people
that are trying to get their doubles to go faster. If you rely on diversi cation, it takes 20 to 40
years, and that's if everything goes the way it's supposed to. So don't rely on diversi cation to take
you where you want to go.

#17: Leverage

The next of the rules of money is about leverage. Everything is leverage.

Let me explain what leverage means. When I say leverage, I'm not talking about going into debt.
I'm talking about leverage, period. Here are some ways to use leverage in your business:

Gain more support

Expansion
Market yourself more
Get to the customer faster
Increase the speed of growth of your business

You need to ask how you can leverage every aspect of your business because leverage is a growth
game. And the more you study the concept of leverage, the better it is for your wealth.

#18: Positioning

Listen in here for why positioning is an important money rule.

#19: Strategic Partnerships

Number 19 of the 20 rules of money is to develop strategic partnerships. This is similar to

befriending money makers but it's slightly different because it's intentional. For instance, in our
company we have strategic partnerships where a lot of people make money. And the more that
people make money, the more they'll continue to do business with you.

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I have strategic partnerships with $400 billion companies, $200 billion companies, and $60 billion
companies. I have strategic partnerships with a lot of different companies that bene ts them.
Strategic partnerships increases the value of making money because a lot more people make
money when they go into business with you.

#20: Big Check Syndrome

Last but not least of the rules of money is big check syndrome. Oh my gosh, I've seen so many
people screw this whole thing up.

Let me tell you what I mean by big check syndrome. Let's hypothetically say you sell real estate.
And all of a sudden a client wants you to sell their $3 million home. You sell it and get a $100,000
commission check. You say to yourself, "Oh my gosh! I made $100,000!" And for two months you
live as if you made $100,000 in a month.

What you don't realize is that you need to look at that $100,000 as $8300 a month income for a
year. Don't look at it as $100,000. Look at it as $8300. I see so many people that see it as
$100,000 and get arrogant and cocky. They don't realize it's just a big payday. And their double
goes lower and lower and lower.

Here's a question for you. Would you rather take a half a million dollars up front, or take a
guaranteed income stream of $100,000 over 20 years? Which one would you take? Most people
would take the half a million dollars. Let me tell you why $100,000 is more. $100,000 adds up to
two million bucks. And a half a million dollars is just a half a million dollars. The $100,000 gives
you the opportunity to have a stronger backing to make bigger decisions to get bigger doubles.

Now you may say, "But Pat, a half a million dollars? That already moves me a long way in the
doubles game." But that's irrelevant if you don't know how to play the money game. I want high
income as well. I want income coming in that feeds my game so I can increase my net worth.
Income is a very, very important game, so don't get too crazy about big check syndrome and all of
a sudden fall for it and lose everything.

Your Turn to Play the Money Game

As I said in point three, one of the most important ways to win the money game is to play the
doubles game. So if you haven't already done so, be sure to ll out the form below to get your
doubles game worksheet.

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Fill Out Your Name and Email Below to Get Your Free PDF

First name Email address

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If you have any questions or comments, comment on the bottom. And if you haven't yet
subscribed to our YouTube channel, click on the button below to subscribe, and learn the content
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Leave a Comment
12 Comments

Add a comment...

Peter Laski
Excellent video recommended to everyone
Like · Reply · 4 · 28w

Quentin Bishop
I loved your video and watched it totally. You taught me so much Patrick because listen i got a bi
scale
Like · Reply · 25w

Sanaa Najil
Thank you Patrick for this useful video, I learned a lot from it.
Like · Reply · 25w

Joel Espanillo
perfect... direct to the point advice of increasing your wealth
Like · Reply · 24w

Samson Ojo
beautiful video. thanks alot
Like · Reply · 23w

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Torubiri Fabiawari Dagogo

I appreciate your thought of sharing what will add value to people like me. Thank you so much
Like · Reply · 22w

Anj Agravante
I loved this Video, I learned Alot On it. Excellent
# Road To Success.
Like · Reply · 19w

Sangam Agarwal
Future billionaire
Like · Reply · 17w

Uchenna Tochukwu Donald

As a young entrepreneur, this article has inspired me and had placed me on a Lane to suicide.
Thank you Pat.
Like · Reply · 11w

Curtis Truong
So true about taking this advice rather than grinding it out. Wish I had mentors like this around w
go learn about scenarios he's talking about. It's going to save you decades of time.
Like · Reply · 10w

Roger L Martin
Well done - thanks - lot to learn and do
Like · Reply · 5w

Tecshoine Antoine
Tecshoine Antoine
Already subscribe to Valuetainment. The videos are informational, I especially like 20 Rules; the
the part on if you win a sweepstakes, what would you chose, 100k over 20 yrs or 500k in a lump
always was told to take the lump sum to pay less taxes, but I see that the strategy is to keep the
Like · Reply · 3d

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