Stop Spending 100% Income
Do you know a high number of people spend over a 100% of income. They do not have margin in life. They continue to spend on unnecessary things. They continue to spend in order to find happiness. It is the 1 number rule in the area of money management. Hey stop the crying and stop the spending in order to find surplus funds. The choice to funnel 20% of pay from the very first paycheck will allow you the margin you need to not abuse personal finance. Obviously if in Debt you might not be able to funnel 20%, and thus should be directed towards debt.
Avoid Paying Interest for Debt as it’s a black hole
Paying interest on money you don’t own is the ultimate trap. Pretending to be OK financially, while borrowing on debt to fund a lifestyle is never good. Be creative to find ways to pay it back or to avoid it at all costs. Debt is never the answer and those who tell you it is, are stuck in debt themselves. They want company and you should immediately stop listening to that advice. I’ve been in and out of debt and I’ll be honest being in debt is stressful, and those times when out of debt felt great. Avoid giving free money away and tell the banks to keep their expensive loans.
The 3 Rules of Money Management
Invest and Save so that Money Works for you, and has your Back
Hey did you know money grows on trees literally. It is called compound interest. You invest and plant the tree, and every year it surprises you with free money. No I’m not talking about a get rich quick Bit coin scheme or it’s cousin Gold funds. Invest in stable Index funds, or individual stock investments that pay you dividends and grow. If you invest 100 you can expect to earn at least 4 dollars in dividends annually. Plus you can always get your 100 dollars back if you choose. Also the savings you stack is a way to avoid adding debt during tough times. Once you’re somewhat debt free and can afford to set aside at least 8 to 15% consistently try to invest or save funds. It will only help you and allow you freedom later. Trust me no one ever said I shouldn’t have saved so much money!!!!
Discuss If you agree with the 3 rules of Money Management
Rich Uncle EL
I agree with these common sense steps, but they often get overlooked. We fall in bad money habits, I want it now mentality that causes us to over spend and rely on credit. Once you break that cycle money management will be easy!
Yes I will have to say those 3 rules are my foundation to being superb with personal finance. Brian thanks for the comment.
These are all great, seemingly common sense, points made for money management. Unfortunately many don't follow these basic rules as most spend most or more than their monthly income coupled with the fact that CC debt is continually financed on a monthly basis to "sustain" these lifestyles. Thanks for sharing.