10 Important Personal Finance Rules

Personal finance is way more than earning and saving. It includes investing, having money goals, planning for the future. In this article, I will be unveiling 10 important personal finance rules that will help you in your personal finance....

Personal Finance

Ten hidden personal finance rules that most people don’t want you to know.

Most people don’t pay attention to their finances as well as they pay attention to other aspects of their lives such as social and spiritual lives. Your financial life should also matter.

Personal finance is way more than earning and saving even though you might not be able to reach your financial goals without earning. It’s way beyond that. It includes investing, having money goals, and planning for the future.

In this article, I will be unveiling 10 important personal finance rules that will help you in your personal finance (and yes, you will be getting them for free).

1. Have Money Goals

2. Create a Budget

Having a personal budget is the second step, this might sound like a hard thing to live by (but trust me, when you follow the first step it is much easier). A budget is a plan on how much you want to spend weekly or monthly or yearly, and how you want to spend it. When creating your budget you should consider how much you earn and how you spend the money you’ve earned ( a general rule of thumb states that your expenses should never be greater than your income).

3. Automate Your Savings and Investments

The best way to save and invest more money is to automate them. This is my method of saving and investing. It also makes your life easier. It helps you to make your money decisions upfront without even having to stress yourself about it.

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4. Follow the 50/30/20 Rule

The 50/30/20 rule of money is a rule that helps you to save more money, invest more money, manage your finances and even help you to afford anything you want. This means that every month, 50% of your money is for your Needs, 30% for your Savings and Investments, and 20% for your Wants.

5. Don’t Chase Money, Let Money Chase You

In our world today, a lot of people are actually chasing money, and that’s why they stay poor. You need to attract money to make money and stop chasing it. How can you attract money? You need to be valuable, you need to add value to people, and you need to acquire skills that people really want to pay for. By doing all of these, you are attracting money, because the more valuable you are, the more you attract money.

6. Read Books

Reading one personal finance book every month can greatly help you get better financially. There are several personal finance books you can download online for free. Check out some free books.

7. Spend Less Than You Earn

A lot of people stay broke because they spend more than they earn. How can you prevent this? You need your income to be more than your expenses. And that is why you need to have more than one stream of income and a budget to monitor how you spend your money.

8. Have An Emergency Fund

An emergency fund is that money that will save you or help you in emergencies or when you need money urgently. We as humans should have emergency funds because we don’t know when that emergency period will come or when we will need money urgently. And having an emergency fund will save you from going into debt during emergencies.

9. Save More Every Year

To save more money you need to increase your savings rates every year. If you’ve been saving 10% of your income last year, save 15 or 20% this year. To make this rule easy, make sure you add a new source of income every year.

10. Have Several Sources Of Income

Having several sources of income can take you closer to financial freedom. By having more sources of income you are increasing your net worth. Another thing is that if one source of income is affected, other sources will still continue to pay.