7 money rules that you may not know
Many people believe that if you have a high income and make good decisions, saving money is not your problem. However, as soon as you have to manage your expenses and avoid debt, they realize that they either don't know how or don't want to.
Budgeting is painful, but you may have to do it. In addition to staying out of debt, budgeting also allows anyone with a low income to save more money. In terms of managing a budget, the two golden rules of budgeting are understanding your real needs to expenditure ratio and putting money toward an emergency fund first.
Some people might be great at budgeting, but they may not understand the importance of saving money to pay for their future. If you find yourself in that situation, a personal finance course can teach individuals about the importance of investing and building an emergency fund.
Compulsively spending on fun stuff is not just a habit, it's an addiction you should forfeit to gain the chance to grow your personal wealth in contrast to indulging in unnecessary spending.
These money rules will help in integrating all your knowledge and instincts about saving and spending, to enhance your ability to maintain a watchful and disciplined stance on household financial matters.
Listed below are some money-saving rules that you may not have known. If you happen to know these rules, then it's better for you than the rest of us who struggle miserably with expenses and budgeting each month.
• If you want to know how much money you have, subtract your debts and monthly expenses from your income
• To calculate how long it will take until you reach a specific goal, divide the desired amount by the amount saved per month over an interval of time (e.g., if saving $500 per month for two years, divide 500 by 12 to get $36)
• If you are in debt and want to save money, try putting your savings on a credit card, or get a personal loan from your bank or friends and family.
• If you are going to buy something at full price, buy it now and then put the item on sale for 50% off later
• When you go out to eat with friends, split the bill evenly6. Use your phone's calculator function to calculate how much one drink costs
• If you pay cash for something then keep the receipt
• To prevent restaurant tips from adding up in your wallet, leave a lesser tip for every drink you order, etc
Self-discipline might seem like a double-edged sword. On one hand, it limits your activity to what matters most to you. On the other, it increases your control over what you do with your money
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