The web is full of gurus ready to give a lot of tips to improve your personal finances: it is, more often than not, tricks and rules that can really contribute to increasing your financial well-being.
However, do not make the mistake of believing that these tips are all the same, in fact some are more important than others.
So what are the tips you really cannot do without? If the topic interests you, here are 4 personal finance rules that you need to make yours if you want to keep your finances healthy now and in the future.
1) Avoid debit with a credit card
The first rule of personal finance is to avoid making debts with a credit card: much better to finance the purchase of something with a personal loan, rather than pay the interest rates of credit cards that are usually much more high.
Is there an exception? Yes, if you have a credit card with a low interest rate as in the case of loan offers with deferred interest.
Even in this case, however, be careful because if you could not cover the debt before the expiry of the promotional period, you could find yourself paying the remaining part with a really uneconomical interest rate.
2) Save at least 10% of what you earn
How much should I save to protect myself from any emergency? It’s one of the questions that you hear most often.
The answer is simple: 10% of your monthly income is a good goal, regardless of the form of savings you choose (savings account in the bank, personal insurance or emergency fund).
10% may seem a lot to you today, especially if you cannot put aside more than 5% now: however, you do not need to get this result right away, at the beginning it is enough to aim for a minimum percentage by increasing one point each year. Your monthly savings up to 10%. If then you can do more well come!
The important thing, especially when you know you have to deal with extra expenses, is to set an achievable savings target and divide it by the number of times you get paid.
3) Live according to your means
It is certainly a sensible advice to not spend more than what you earn, including in this count the part to put away in the form of savings.
If you have a salary of 2,000 dollars a month and put away 200 dollars in the emergency fund, your objective will therefore be to spend a lot less than 1,800 dollars in order to always have resources available to also incur unforeseen expenses.
In other words, do not buy a more expensive car just because you can afford it if a less expensive model suits your needs and tastes.
4) Stay informed about the best money management solutions
The last suggestion to improve your finances? It’s easy: it studies money because mortgages, loans, insurance and banking products (cards and accounts) are complicated tools that often are not fully understood, with the result then of making wrong choices.
These 4 tips are not the only ones you will find on the web and will allow you to keep your finances healthy, but they are certainly those that will bring you closer to the goal if you know how to make them yours and respect them in your everyday life.