Sometimes there is just something to be said for boiling it all down into a nutshell and that is just what I have decided to do in this blog. This is pretty much says it all in seven easy-to-follow rules. The best time to start living these rules is from the minute you start that very first job. That is the time to set up good habits that will keep your finances healthy and thriving for your entire life and ultimately lead you on the path to that beautiful dream of financial freedom! If you know anybody who is just starting out here is the perfect gift for them. Just print these rules out for them and you will have changed the trajectory of their life forever. 1. Always live below your income level (and be saving for retirement and goals).
2. Always be saving at least 15% of your income into your retirement account(s). 3. Always have an emergency fund set up of at least 3–6 months' worth of spending. Your Emergency Fund questions 4. Keep track of all your spending. Know where your money is going! 5. Learn to distinguish wants-vs-needs. Many things that we think of as needs are actually wants. Don’t buy wants if you can’t afford them. 6. Never buy anything on credit (including cars). No Loan Auto Ownership. Save up and pay for things with cash. One exception to this would be a mortgage on a house but put a hefty downpayment down. Get a 15 yr fixed rate mortgage and pay it off ASAP. 7. Pay yourself first! Put your savings on Automatic Pilot. Set up an online bank account (or a few) to save up for your future needs. It’s better if you can have a separate one for each goal (i.e the car account, the wedding account, the vacation account, etc.) Set up automatic payments going into them each month from your checking or savings account. You really can’t go wrong if you live by these simple rules. They're not that hard to do! Wishing you all a very bright future!
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