Rules are made to be broken, right?
Not where your finances are concerned! If you want to build wealth and have a better financial future, there are some rules you really do need to follow.
Well, consider the following examples. By adhering to them, you should have less financial worries now, and in the months and years to come.
Rule #1: Spend less money than you earn
This is a no-brainer, of course, as if you were to spend more than you earned, you would quickly find yourself in financial jeopardy down the line, especially if you found yourself in an emergency situation. You need to adjust your lifestyle to accommodate your income, so if that means eating fewer takeaways at the weekend and buying fewer luxury items, then so be it.
Use a budgeting app so you can calculate your income and expenditure, and then live according to your means to avoid financial trouble in the future.
Rule #2: Protect your financial tomorrow
If you have the live for today mentality, then this is only going to cause you trouble in the future, especially where your finances are concerned. By living in the now, you might be tempted to spend without saving, but you will only face the consequences later. You might find yourself in an emergency situation, and that could derail your finances. Your home might be affected by water damage, for example, or you could lose your job. Without an emergency fund in place, you would struggle to cope. And what about the luxuries you might want later in life? A better home? A new car? If you didn't save your money, you would never have the means to pay for such things.
So, if you are currently living for today, change your mindset. As little red-haired orphan girl Annie used to sing, 'tomorrow is only a day away.' If you're not financially prepared, then you will regret the frivolous lifestyle you have been living.
Rule #3: Get out of debt
Many of us have debts to consider. We sometimes take out short-term online installment loans to get out ourselves out of a financial jam, or to make a one-off luxury purchase. We have long-term debts too, such as mortgages and car loans. Living with these debts can become the norm, but it's in our own best interests to break free from them as soon as we can. We will then have more money to put into our savings, and that can only be a good thing when looking into the future.
If you're living in debt, you should take the necessary steps to free yourself from it. Consider consolidating your various debts into one easier-to-pay loan to rid yourself of the majority of your creditors. Or speak to a debt relief specialist, as with professional advice, you will know what you need to do to remove yourself from the debt trap. Then tear up your credit cards so you aren't tempted to use them again, and resist the urge to take out yet another loan, especially if it's not for consolidation purposes.
- Spend less money than you earn.
- Protect your financial tomorrow.
- Get out of debt.
Stick them to your refrigerator or imprint them into your mind so you are always mindful of them!
Thanks for reading.
CANDY TAI is a wife to David and mom of 5 with a degree in Communications. She's a native Texan (Hook 'Em Horns!) who's been making her home in the Kansas City metro area for nearly 15 years. She loves being able to shuffle her kids from their various sports activities, piano lessons, and school activities. She enjoys fashion, beauty, reality TV, and moviegoing.