Money is simple; people make it complicated. We need simplicity, a means of looking at most of the money decisions we're asked to make and being able to say yes or no. In my new book, Money Rules: The Simple Path to Lifelong Security, the tips are brief on purpose--they're made to remove complexity. Some are self-explanatory, and for those that aren't, the logic is included. If you understand the whys, you're more likely to stick by these rules because they make so much sense. They're also easy to remember, because if you can remember them, then you can follow them.

1) MAKE MORE
Your job is your most important investment.
If the Great Recession has proven anything, it's that your job--more specifically, your earning power--is by far your greatest asset. Protect your financial security by treating this asset like any other investment. If your work profile is risky (you're paid on commission, or your job security is closely tied to the economy), it's like a stock. If it's more stable (you work for the government, or you're one of the lucky few who still has a traditional pension plan, or you're a tenured teacher), you're essentially holding a bond. In a stocklike job? Be a little less aggressive in your investments. If you have job security, you can take a bit more risk.

Take happiness into account.
The next time you're considering taking a job you really don't want to take "just for the money" remember this: Money buys happiness only to a certain point. Beyond that, more money makes no difference. As long as you earn enough to payyour mortgage or rent, put gas in a car that's not a clunker, eat what you want when you want to, take the occasional vacation, and, oh yes, save a decent chunk of whatever you're bringing in, more money will not make you happier. Coming up short on any of these basic wants and needs, however, can make you miserable.
One hour of your time is worth_____.
Here's a quick and dirty way to compute your hourly rate: Remove the last three zeros from your annual salary and divide the remaining number in half. For example, if you earn $30,000 a year, that gives you a rate of $15 an hour. If you make $100,000, it's $50 an hour. Use this handy formula--in combination with your enjoyment or hatred of the task at hand--to decide when it's OK to hire someone and which tasks aren't worth doing at all. The weeding of the garden you could hire someone to do for $15 an hour? If you hate it and earn more, hire help. If you love it and earn more, do it yourself. And if you earn less, turn on some music, roll up your sleeves, and start digging.
Know your worth on the open market.
Are you worth more than you're earning? Or less? If you're underearning, you're losing money every day you're not asking for more. If you're overpaid, you're ripe for the chopping block, and you'd better update your skills or improve your productivity. You can find salary info online at sites such as Salary.com. Better yet, ask a friend or colleague, "What would someone with my skills make at your company?"

2) SAVE TONS
Count dollars like calories.
Research has shown that maintaining a food diary keeps even the most troubled dieters honest. The same is true of tracking your spending. Most people have absolutely no idea where their money goes--particularly their cash. Tracking works, whether you do it using a pencil and paper or a website or smartphone app such as Mint or Pennies. It will transform your financial life.
Live below your means. Period.
The key is to live on less than you make. This is nonnegotiable. Why? Because if you do it consistently, then you're automatically saving consistently. Aim to save at least 10 percent of what you earn. If you can't hit 10 percent, start by saving 3 percent, or 5 percent--whatever you can do. And if you can save more than 10 percent, then by all means do that too. Then watch that stash start to grow. You'll be inspired to set aside even more.
Carry Benjamins, not Jacksons.
Spending big bills is more painful than spending smaller ones. Instead of getting twenties from the ATM, get hundreds from the teller. They'll stay in your wallet, and you'll get richer.
There's no such thing as chump change.
One hundred dollars is not a lot of money. Save It every week, however, and invest it In a retirement account that earns a conservative 6 percent, and keep doing this for 30 years, and you'll have $435,557. In 40 years, you'll have more than twice that. And that is a lot of money.

Save every raise.
Here's what happened last time you got a raise: You celebrated by taking your guy out to dinner, splurged on that new coat you'd been eyeing, and started planning a vacation. Here's what happened to your net worth: nada. Make this a rule: Every increase in pay comes with a commensurate increase in how much you're socking away. In other words, the first call you make isn't to your significant other to share the good news; it's to the benefits department to ask them to increase your 401(k) contribution.
3) AVOID DEBT
Every birthday, check your weight and your credit score.
One should go down, the other should go up. Guess which? (Granted, both should stay level if they're already good.) Your credit score is vital--it will be used to decide whether you get a loan, an apartment, or a job, or whether you pay a decent rate for homeowners insurance. Protect your score by doing all the things that positively affect it: Pay your bills on time, don't use more than 10 to 30 percent of your available credit, don't apply for new cards willy-nilly, and don't cancel cards you're not using. The longer your open accounts are in good standing, the better your score will be.
Use your emergency savings for emergencies.
The refrigerator goes kaput. Your roof leaks. You need a pricey medical test. These are emergencies. Which is why I'm amazed when people with emergency cushions put these expenses on a credit card. Use the cushion. You can replenish it when you're out of the woods.
Just because someone will lend it to you doesn't mean you should borrow it.
This is the lesson of every unfurnished McMansion from Maine to California,
Realize the Joneses are in debt.
In the United States alone, an estimated 115 million people have credit-card debt. Of them, the average household is carrying $15,799. In other words, there's a good chance those flashy next-door neighbors of yours have some flashy debt to match. Make your lifestyle and purchasing decisions based on what you can actually afford, not on what your peers are buying. Instead of coveting thy neighbor's luxury car or lap pool, try to feel smug about your fat retirement account and your zero credit-card balances.
4) SPEND WISELY
The salesperson is not your friend.
We shop for many reasons, including loneliness. Ever pop into a few stores on your way home from the office because your boyfriend is working late, or your roommate is traveling, or you don't feel like making dinner for one? You don't need anything in particular--what you're really craving is human contact. But that person who tells you how great that leather jacket looks on you isn't just being nice. She's doing her job, which is getting you to open your wallet and spend.
A coupon isn't a reason to go shopping.
This is the lesson of the third, fourth, and eighth pairs of red heels in your closet.

Shop with cheapskates.
It's human: Your friend ordering dessert gives you license to do the same. And watching others swipe their credit cards makes you want to swipe yours too. If you're trying to stick to a budget and you need to buy a birthday present or a pair of boots, shop with your frugal friend, the one who clips coupons and runs her own heels into the ground, instead of the one who shows up at every girls' night twirling a new handbag.
The best cost-cutting tool is a good night's sleep.
With the possible exception of prescription medication, flashlight batteries, bottled water, and a few other true necessities, there is nothing you need to buy that can't wait until tomorrow. So when you're faced with a discretionary purchase, do your wallet a favor and hold off for a day. If you're not still thinking about it--whatever it happens to be--24 hours later, you don't need (or want) it anyway.
5) INVEST SMARTER
Big numbers make smart people do stupid things.
Think of Sarah Ferguson, caught on tape allegedly attempting to sell access to her ex-husband for half a million pounds. Or think of lottery tickets. When the jackpot is a regular size, people buy a regular number of tickets. But once the Powerball jackpot gets into the hundreds of millions, we go nuts--even though the chances of winning have actually gone way, way down. The same happens with the sort of hot tips--and big projections--you see as an investor. Big numbers make you even more eager to buy in. What you should be doing instead is exercising more discipline and discernment.
If there's already a bandwagon, you're too late to get on it.
If you were fortunate enough to hear about Amazon or eBay before your friends did, and you did a little research and bought some shares, more power to you. But by the time a company (or any investment) becomes cocktail-party conversation or makes the headlines, it's too late to get in on it.
"What's the worst that could happen?"
Always ask that question--and know the answer--before you invest in anything. Could you lose it all? Could you be stuck not being able to get your money back if and when you need it? Or is the worst-case scenario that your money will sit there and earn nothing (which means you're losing after taxes and inflation)? Understanding the upside is only half of what you need to know before making any important investment decisions.