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Rule Three is to Save for a Rainy Day. You set aside monthly amounts for expenses that happen less frequently (but are usually larger). For example, Christmas, property taxes, car insurance, etc. These can be both known (property taxes) and unknown (car repairs) expenses infrequent expenses. Following Rule Three lets you smooth out your cash flow and avert most crises before they ever start.
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Rule One requires that you stop living paycheck to paycheck and instead, live on last month's income. It takes a bit of work, but the benefits are well worth it.
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When Theo brings home a poor report card, but claims he doesn't need good grades to get a job. So Cliff gives him an economics lesson with Monopoly money.