Spending less than you earn is the main rule of personal finance.
Of course, not everyone can follow the rules all of the time, but the more you abide by these “rules” the better your financial situation becomes.
- Never build your future on miracles. If you spend less than what you earn, you will be able to save more for the future and thrive when you become older with less of the energy you have today.
- Your “future self” should not be taking care your current situation. Have you ever thought that taking a bad decision about a purchase is fine just because you are convinced that you’ll make more money in the coming months? You will always regret the huge mistake you have made on the long run.
- Consider making an emergency fund in the first place. Consider an emergency fund at a bank in a savings account should be your number one priority if you don’t have one yet. Only money can solve all your problems that come unexpectedly. To build an emergency fund, you can set an automatic weekly or monthly transfer from your checking account to your savings, which you will use only for emergencies.
- Put big goals and don’t you ever forget them. Do you want to make your own business and have a secure retirement plan? Do you want to travel the world and buy a new car? Keep reminding yourself with your goals so that you take the best decisions, which will make your life better.
- Be a good example for your children and teach them how to save money for better financial stability.
- Invest your money in the stock market no matter how hard it may seem.
- Invest in international investments.
- Enjoy any hobby that does not need a lot of money.
- What other people think should be worthless to you.
- Every week check the updates in your finances, your career and your life.
- Build a small business that fulfills your dreams.
- Keep in mind that “materials” won’t give you satisfaction nor make you happy.
If you are looking for happiness, search within yourself for this is the only place where it lies. Nothing in the world will make you happy if you are emotionally unstable. You don’t have to work hard to bring joy into your life. Owning something materialistic will never make you happy and you are mistaken if you believe it will. Money will only help in reducing the stress caused by the financial matters and improve your security. Spend your money wisely.