Good financial blogging transforms seemingly dull and uninteresting responsibilities into practical to-do’s. The following 5 fundamental rules of personal finance are purposed to do exactly that, help us understand money without the headache.
1. Spend Less Than You Earn. While it may seem too simple, spending less than you earn should keep you out of trouble and your head above water.
2. Earn More. These are all very key ingredients to maintaining your current and increasing your future earnings. Remember, you spend the great majority of your life working, so make it a priority to do something you enjoy.
3. Live Frugal. While on the surface Payoff would agree, it must be clarified that not all habits are “dangerous”, such as paying for things with cash instead of debt, stashing money for future expenses, checking your credit score, etc. Further, the “ten second rule” says that any time you are about to spend any money at all, count to ten slowly and spend that time considering whether or not you should actually spend the money.
4. Manage Money. While retirement is important, it’s key to keep in mind that there’s more to life than sipping lemonades pool-side in the Bahamas. Legacy, or the culmination of all savings, giving, investing, and creating that one does in a lifetime, is really what counts. Don’t work your whole life to retire, retire knowing that you worked your whole life for a purpose. And remember, college savings may be key for some, but not for all.
5. Control Your Own Destiny. A life full of toys but full of turmoil can be miserable. It’s not about how many dollars you have in your wallet but what you choose to do with them that will determine your destiny.
A big thanks to the folks The Simple Dollar for these five wonderful reminders.
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