03 Feb PERSONAL FINANCE RULES TO LIVE BY
Your financial health is as important as your physical health. The same way you would pay attention to your body if you had as little as a headache, should be the same way you pay attention to your finances.
You might have your own morals and standards, which you live by, and that’s fantastic, but do you have financial standards that you live by? If you don’t, you should put together rules that guide your income spend because this is crucial to your financial health.
Here are 5 personal finance rules that would help get you started:
Your savings is not the same as your salary
Let’s put this in another way, your salary is what your job pays you but your savings is what you pay yourself. Think about it, how would you feel if after all your hard work and sweat, your boss tells you he spent your salary on ‘Official Retreats’? Now think again, how your future self will feel when it realizes you spent all your hard earned money on ‘Miscellaneous’. Not a pretty sight. You might say ‘Well, there is a large chance that I would have more income in the future’. Well, if you’re playing the probability gamble, then know that there is also a large chance that you might end up with less income in the future. Don’t risk it, remember to always pay yourself (save) first.
Choose your friends wisely
Sounds a little bit out of scope? No, it doesn’t actually. If you’re not a high income earner and you roll with the high income crew or live in a high income neighborhood for that matter, it’s easy to try to gain acceptance by mirroring their actions. You know in your heart that you cannot live like that but you still bend over backwards anyways. You shouldn’t have to live above your means just to impress your friends. Keep doing that and you will run into debts pretty soon.
Stop Buying What You Don’t Need
Yes, there is a certain dopamine rush that hits you when you purchase a new item, especially if you’re more of the ‘Want it! Need It! Must Have It!’ person. If you are honest to yourself, you really might not need that material and you just want the rush, that’s all. Unfortunately, it does wear out after a bit and then the item becomes ‘just another stuff in your cupboard’. Remember material purchases won’t make you happy.
The multiple streams of income principle
A single stream of income just doesn’t cut it anymore. Your salary might be heavy but the truth is there is no financial security in one stream of income, especially in these economic times we find ourselves in. It’s time to make more money through more sources. You can start up a personal business so as to serve as another source of income for you, need a loan for that? RenMoney fast cash loans have got you covered.
Take your financial education seriously
Pay attention to your financial education this year. You don’t really have to get into the nitty gritty of it, if that sort of thing bores you to death. You could just stick to the more basic financial education which will still go a long way to save you money.
These rules give you a good head start for you to create your own financial standards to live by. Don’t lie to yourself, make the rules and stick by them. Your personal finance will be happier for it.
#LiveDifferent, RenMoney has got your back.
The RenMoney Blogger.