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10 Money Rules For Everyone.

Have you ever thought of putting rules on your money?

We tend to have rules for every other area of our life .. how much to eat, how much we should watch TV, amount of time we spend on social media, brushing our teeth .. etc.

We need rules because they provide structure and guidance when we need it the most.

Here are 10 Money Rules For Everyone:




1. Spend Less Than You Make.

Spending less than you earn is a good money habit that should be part of your lifestyle. It lets you have extra cash for purposes like saving and investing, while also helping you avoid unnecessarily getting into debt.


2. Save 10% and invest 20% of gross income, minimum.

The 10% savings rule is a guideline that suggests setting aside 10% of your gross income for retirement and other important savings. It's more of a personal commitment than an actual rule. Establishing a personal budget that sets aside 10% of your gross income every paycheck is a way of prioritizing savings.


3. Always have 1 year of emergency fund, cash.

Sock away 12 months' worth of net income in an emergency fund. It's a simple, but effective way to weather a job loss, unexpected health issue, surprise household expense, and other life events that could threaten your family's nest egg.

Oh, and at the risk of wrapping things up on a melancholy note, remember that preparing for the unexpected also includes proper estate planning. Protecting your assets and providing for your loved ones is an often ignored golden rule of smart personal finance. If you haven't made a will yet, add it to your to-do list and to-do it!


4. Pay Your Bills On Time.

Paying your bills on time is one of the key aspects of taking charge of your financial life. Not only does paying bills on time help you avoid a number of nasty repercussions, but it can also have lots of short and long-term positive side effects.


5. Say NO to Debt.

Don't let savvy credit card marketers confuse you. Your credit limit is not your spending limit. Avoid consumer debt and the nearly usurious interest rates that go along with it. The slow bleed of interest payments, late fees, and other charges will kill your budget and your prospects of achieving personal financial security.


6. Distinguish Wants From Needs.

Spending money is a habit and the lines between a want and need become blurred.

Need = Something you can not live without (shelter, food, clothing)

Want = Something that makes our lives easier and makes us happier (fashion, buying new mobile while the old one is still useable .. etc.)



7. Don't Invest in Anything You Don't Understand.

Investment success takes clear thinking, discipline, and consistency over time. Taking shortcuts and investing in overly complex products you don't understand threatens your long-term gains and capital. Stick with what you know, strive to learn more every day, and don't be spooked by cyclical fluctuations in the market.


8. Never Question Spending Money on Essential Self Development Books.

Self improvement books help you to equip with the most important knowledge for a better self. they help you progress. They push you, motivate you and inspire you to do more in a better way. They expand your world view and introduce you to fellows who have lived through your struggle and achieved the impossible. Life is about learning every day and changing as per change.


9. Learn From Your Finance Mistakes.

Money is one of the top causes of arguing. why pick a fight and borrow/lend money from friends and family. Yet, this money mistake happens over and over.


10. Know the Difference Between Assets and Liabilities.

Assets are things you own that have value. Your car, home, savings account, and coin collection are all assets. Liabilities are what you owe. Credit card balances, student loans, and car notes are all liabilities. The not-so-secret secret to success is to accumulate assets and reduce liabilities.


Disclaimer: This article is for general informational purposes only and is not intended to be and should not be taken as psychological, legal, investment, financial, accounting, or tax advice.

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