We all wanna be rich right? Who wouldn’t want to take their dream vacations at any time of the year or in the most luxurious hotels in the world?
Being able to control your money and not have your money control you is everyone’s dream. In today’s blog post, I am going to show you the top 10 money rules, and some really good rules of thumb that you should be following with your money that can help your financer fly.
Without further ado let’s get started.
Money Rules That Can Help Your Finances
1. Live Below Your Means.
Rule number one on our list is to live below your means. you probably heard this before, maybe you understand it, maybe you don’t but the core value of this is by far the most important thing we should know when it comes to managing our money.
Let’s say you are making $2,000 a month but you are spending $2,500 every month in expenses there is no way you can get ahead with your finances. You need to make sure that you are living below your means so you can save money for the future and other financial goals. So making sure that you are living below your means is probably the core value when it comes to personal finances.
2. Create a Budget.
A budget is a great way to make sure that you are spending less than you make. The best way to start a budget is to differentiate between your needs, your wants, and your savings.
- So needs are like paying rent, paying bills, and buying groceries.
- Your wants are things like buying that new bag that you have been looking at and going out to eat as often as you want to.
- Savings are all the money that you have to put aside each month to pay down your debt or just save your money for rainy days.
Figure out how much money actually takes to sustain your needs in life and from there you can figure out how much spending money you have for those wants and how much money you can maybe set aside every month to help you pay down your debt for example.
3. Make More Money.
One way to improve your financial situation is to make more money. Increasing your income can provide you with more financial stability, help you pay off debt, and allow you to save more money for your future. Here are some tips to help you make more money:
- Look for a higher-paying job: If you’re not happy with your current salary, consider looking for a higher paying job. You can search for job openings in your field, network with professionals in your industry, or consider acquiring new skills to make yourself more marketable.
- Ask for a raise: If you’re happy with your job but want to earn more, consider asking for a raise. Schedule a meeting with your boss, and be prepared to present your accomplishments and contributions to the company. Make a case for why you deserve a raise, and be willing to negotiate.
- Start a side hustle: Starting a side business oder freelancing can be an excellent way to earn extra income. Consider your skills and interests and look for opportunities to monetize them. You can start small and build your business over time.
- Sell items you no longer need: If you have items lying around that you no longer need or use, consider selling them online or at a garage sale. This can be a quick and easy way to earn extra cash.
- Participate in the gig economy: The gig economy offers many opportunities to earn extra income. You can sign up for ride-sharing services, and food delivery services, or offer your services as a pet-sitter or house cleaner.
4. Have Multiple Sources of Income.
We are living in a day and age now where it’s a lot easier and a lot better for almost every single person to be able to find ways to bring in multiple sources of income so that way they don’t have to rely on just their 9 to 5 job.
Imagine if something happens to you whether it is getting in an accident maybe, you know you might become disabled, or your job goes away. whatever the case might be you will be struggling but if you have other sources of income whether it’s from rental properties, you invest in dividend stocks, or any other potential way of bringing in the money you might save yourself a lot of headaches.
5. Start Investing Now.
Investing your money is a crucial step in securing your financial future, and the earlier you start, the better. There are many different investment options available, and it’s important to choose the one that suits your financial goals, risk tolerance, and time horizon.
One popular investment option is the stock market. Investing in the stock market can provide you with significant returns over the long term, but it’s important to do your research and understand the risks involved. You can start investing in the stock market by opening a brokerage account and investing in individual stocks or mutual funds.
Another option is real estate investing. Real estate investing can provide you with passive income through rental properties or long-term appreciation in the value of the property. However, it’s important to do your due diligence and understand the local real estate market before investing.
In sich selbst investieren is also an important investment option. This can include furthering your education or developing new skills that can lead to higher-paying job opportunities or starting your own business.
Regardless of which investment option you choose, the key is to start now. The earlier you start investing, the more time your money has to grow through the power of compounding. Even small amounts of money can make a significant difference over time.
6. Be Intentional With Your Money.
Being intentional with your money is crucial for achieving financial success. It means being mindful of how you spend your money and making deliberate choices about where to allocate your resources.
Living below your means is an excellent example of being intentional with your money. When you live below your means, you are deliberately choosing to spend less than you earn. This means that you have more money left over to save and invest for your future financial goals. By being intentional about your spending, you can avoid overspending on unnecessary items and avoid accumulating debt.
Being intentional with your money also involves understanding where your money is going. This means tracking your expenses and creating a budget that reflects your priorities and financial goals. By understanding where your money is going, you can identify areas where you can cut back on spending and redirect those resources towards your financial goals.
It’s important to note that being intentional with your money doesn’t mean that you can’t enjoy life or spend money on things that bring you joy. Instead, it means being deliberate about how you allocate your resources and ensuring that your spending aligns with your values and priorities.
7. Always Learning.
I think this is really important for everyone myself included. I learn every single day even though I talk about personal finance I still want to learn more and more because things constantly change and we have to adapt.
It is crucial for us to be learning better ways to improve ourselves, again whether it’s on the financial side or even on other sides of our lives. So YES, always be learning and I think this is a great rule of thumb to have when it comes to personal finance.
8. Do Your Own Research.
This is tried and true for almost anything in life but you always have to do your own research when it comes to learning about anything, not just personal finance. There is so much information out there in the world for us to be able to be successful with our money, so that way we could have more of it down the road.
So research can also be the fact you are researching how much you’re getting charged for your mortgage, your student loans, or how much taxes you should pay this year.
9. Payoff or Completely Avoid High-interest Debt.
High-interest debt can be a significant burden on your finances and can prevent you from achieving your financial goals. It is essential to prioritize paying off or completely avoiding high-interest debt as part of your financial plan.
High-interest debt includes credit card debt, personal loans, payday loans, and any other debt with an interest rate higher than what you can earn from investing or saving. These debts can quickly spiral out of control if not managed properly, leading to long-term financial struggles.
10. Have an Emergency Fund.
There are so many reasons to do this obviously if you are in a pinch you don’t want to be like “I am completely broke and I can’t do this”. Even if you have the support of your parents and they are in a position where they can not help you, you wanna have that Notfallfonds so that you never have to ask for your parent’s help again.
You can do that just by setting goals for yourself, maybe at the beginning save $250 then after that save $500and then $1,000 and you just keep setting those goals and figure out how much money can take out of your paycheck every time you get one and set it aside for that fund. That way if anything bad happens you are not gonna be totally screwed.
There are many money rules that can help you manage your finances and achieve your financial goals. The top 10 money rules discussed in this article include: creating a budget, saving for emergencies, paying off debt, investing for the future, living below your means, automating your finances, etc.
By following these money rules, you can take control of your finances, reduce your stress levels, and achieve financial freedom. Remember that managing your finances is an ongoing process, and it takes time and effort to develop good financial habits. However, the benefits of financial stability and security are worth the effort.
So, whether you’re just starting out on your financial journey or you’re looking for ways to improve your current financial situation, these money rules can help you build a strong foundation for your finances and help your finance fly. Start implementing them today, and you’ll be well on your way to achieving your financial goals.