Top rules of money: Managing your finances can sometimes seem like a full-time job, with lots of decisions to make and things to learn. But, money management does not have to be complicated if you just step back and look at the big picture.
People who become rich usually build their fortune over a long period of time and live below their means.
Money is unfair, so learn its rules in order to use them to your advantage. If you respect money and play the game of money by knowing the rules, you will see a world of abundant money and will make money work for you.
Top Rules Of Money
Pay yourself first
If you pay yourself first, saving money will no longer be the last item on your to-do list that never gets done. Instead, money can be withdrawn directly from your paycheck and invested in a retirement account, as well as a savings account for essentials like an emergency fund. You’ll never get a chance to spend the cash that you should be investing.
Most experts recommend spending only around 80% of your income and saving the rest in a combination of retirement and other savings accounts. While you may not be able to start at this level, it’s important to start somewhere– even with having 1% of your income auto-invested for you.
Learn how to invest
Knowing how to invest and the type of investment to do at the right time is very crucial to your financial growth. get a financial manger to tutor on the proper way to invest your money.
Give every dollar a job – Top Rules Of Money
One of the greatest mistake we still do is working for money instead of money working for us. you should give some of the money you have saved jobs to regenerate more money.
Spend less than you earn
You need discipline and you need to save money. But at the same time you need to rethink your spending. Never spend more than you earn is a rule of thumb.
Have a plan and set goals
In every successful business there is a good plan and budgeting, you have to set up goals of what you actually wants to achieve and map out dead line for each goals.
Don’t be a slave to money – Top Rules Of Money
working for money is a typical example of being a slave to money, you should endeavor to make means where by putting your money to work rather than working for it. when will you ever stop. the time is now.
If you have it, Don’t flaunt it.
Have the conviction that being financially independent is more important than looking like you’re wealthy.
keep your finances organized and Under check
Be in control of your money. If you are not in full control of your money while dealing with it – be it in earning, saving, protecting, budgeting, investing, insuring, etc. – then it will control you and you will never be able to achieve financial independence
Its a game, learn how it works
Money is like a game of monopoly learn how to play the game and understand how it works.
Always have an emergency fund
You should always save for the rainy days. Emergencies happen. Cars break down, kids get sick, jobs get lost. Unfortunately, around half of all American households would struggle to come up with even $400 to cover unexpected expenses, according to a May 2016 report from the Federal Reserve. Common emergencies, like a job loss or a failed transmission, can cost much more than $400.
Always make money work for you
The next step is to make money work for you, and that means investing. Start treating money like a tool, because that’s what they are.
Take advantage of the power of compound interest. That means interest to interest, which further translates to the fact that the interest you’d get after one year will increase with each passing year.
Learn how to make money passively
if you want to get rich quick and retire at early stage, you should focus on building passive income business.
Know how to risk it and leverage it
Understanding the coins and tons of every business is very important in order to help you manage it risks involve in every business.
Don’t use loan to buy liabilities
One of the very big mistake you will do is to borrow to settle debt or purchase liabilities instead of investing in assets goods.
Invest in things you know – Top Rules Of Money
One of the rules of investing is to invest in business you know about in order not to loose your money.
Hard work pays, if really wants to get rich, you should stop giving excuses for failure instead discover why you do and try again. #Never Give Up.