Dr. Jordan Peterson’s 12 Rules for Your Money

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Canadian psychologist and author Dr. Jordan Peterson’s bestselling book, “12 Rules for Life: An Antidote to Chaos,” is a popular self-help book that provides common sense advice for living a better life.

While the rules outlined in the book apply to life in general, the concepts behind them can also apply to your financial life.

Here’s how Peterson’s 12 rules can apply to your money.

Then, check out money rules from other famous people.

Stand Up Straight With Your Shoulders Back

It may be hard to draw a parallel between finances and posture, but this rule is really more about confidence. In Peterson’s book, he talks about the neurochemistry of defeat and victory, and how victory is good for us, physiologically speaking. Being confident comes from being in a place where you know you can be successful, so set financial goals that you can actually achieve. Set yourself up for success.

Treat Yourself Like Someone You Are Responsible for Helping

When someone asks you for help, or for your opinion on navigating a situation they’re going through, you probably try to help them by giving them the tools they need to figure out the answer on their own. You can treat yourself the same way when it comes to your money by educating yourself about saving and investing.

Make Friends With People Who Want the Best for You

If you think the company you keep doesn’t have anything to do with your financial security, you may want to think again. Surrounding yourself with people who think about money the same way you do, or who at least respect the way you think about it, can help you get to where you want to be financially. This is particularly true when it comes to choosing a life partner. Be sure you’re on the same page when it comes to saving, investing and spending before you say, “I do.”

Compare Yourself to Who You Were Yesterday, Not to Who Someone Else Is Today

This is a great rule in general, and particularly when it comes to money. No one else’s situation is exactly like yours, so don’t compare yourself to others. You may have less in the bank than your coworker, but that may be because you’re younger, or you’ve bought a house while they’re still renting, so your assets are in real estate while theirs are in cash. If you have more money put aside today than you did yesterday, that’s a win.

Do Not Let Your Children Do Anything That Makes You Dislike Them

This chapter in Peterson’s book talks about raising children who are well behaved and don’t embarrass you in public. Making poor money choices may not lead you to “dislike” your children, but teaching them smart money habits is still a good idea.

You can do this the same way you teach them how to behave: by modeling acceptable behavior and correcting unacceptable behavior. Starting kids out with an allowance and helping them decide how to use it is a good way to start with kids in elementary school. By the time they get to college, kids should be able to make most financial decisions on their own, and they should know when to call you to ask for help.

Set Your House in Perfect Order Before You Criticize the World

This rule speaks to the importance of getting your financial house in order. Again, your situation is your own and shouldn’t be compared with anyone else’s. By the same token, you may not know everything about someone else’s circumstances.

Pursue What is Meaningful (Not What Is Expedient)

The second part of this rule, not pursuing what is expedient, has more to do with money than the first. Quick fixes to your financial situation are often anything but. Creating wealth the old fashioned way — by living beneath your means and saving regularly — is a better strategy.

Tell the Truth — or At Least, Don’t Lie

Truthfulness may not seem to have a whole lot to do with money, but the underlying trait of honesty does. Be honest when you file your taxes, apply for a mortgage, or get a job. Doing otherwise may come back to bite you later.

Assume the Person You Are Listening to Might Know Something You Don’t

No matter how much we know about something, there’s almost always someone who knows more, and money is no exception. There may be a time when you seek out advice about your money, whether it’s from a banker, a financial advisor, or the HR department at work. Listen to those with more expertise than you but make your own decisions.

Be Precise in Your Speech

Precision in speech is important, and so is understanding. If you are going to invest in something, make sure you understand it. A good way to ensure that you do is to try to explain it to someone else. If you can describe (precisely!) an investment and how it works to someone who has never heard of it before, you probably have a good enough grasp of it to make a decision.

Do Not Bother Children When They Are Skateboarding

This rule in Peterson’s book has to do with sticking with things that you are able to do and enjoy, rather than spending precious time and energy doing something you will never be able to grasp. The example of children skateboarding is used to demonstrate that Peterson, as an adult of a certain age, will be unable to keep up with adolescents at the skateboard park and would likely be seriously injured if he tried. When applied to finance, this rule could be applied to investing within your comfort zone. Warren Buffett was famous for never investing in anything he didn’t understand, and he did pretty well, so that’s probably good advice. You can still do well without chasing the hottest new thing in the market.

Pet a Cat When You Encounter One on the Street

This particular rule has less to do with money than it has to do with what money can do for you. When you’re secure in your financial situation, and you have a workable plan in place, you can stop and smell the roses, or pet the cats, as it were. Setting yourself up to be in a good place financially means you have time to focus on other things that bring you joy — like petting the cats you encounter on the street.

The advice that Dr. Peterson gives in his book is meant to apply to life as a whole, and how to live it in the most fulfilling way. Applying these rules to your financial life can help you succeed in that area as well.

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