Money Rules to Live By

Odd Cents - Money Rules to Live By

I’m not perfect when it comes to spending and saving money, but I know that I try to think about each activity. I would not spend $100 that I had allocated to my RRSP on a pedicure. Deciding which money rules to live by is not that hard. In my opinion, it’s all about using your common sense.

Sadly, this list was compiled by watching some of the crazy things that people do. I’d like to say that this list is for those who are struggling financially and looking for ways to change their financial situations.

  1. Spend less than you earn – Your expenses should not exceed your income.
  2. Don’t try to keep up with the Joneses – Live your own life and make your own decisions based on your needs.
  3. Focus on your needs and not your wants – Needs fulfil the basics.
  4. Shop around to get good deals – This works on almost everything and can save you money.
  5. Take your lunch to work – I believe in this one.
  6. Use credit cards that give you benefits – I cancelled a credit card because it did not have any benefits.
  7. Start saving for your retirement now – No matter how old you are, you should save something for your retirement.
  8. Create an emergency fund – This can come in handy when you least expect it.
  9. Keep good financial records – Keep critical documents in a safe place
  10. Say no sometimes – This works especially well when your friends think that you’re their personal ATM.
  11. Understand the ins and outs of your finances – Be aware of everything that goes on with your accounts.
  12. Save at least 10% of your income – Set that money aside and do not touch it.
  13. Buy good quality items – Buying good quality items that last is better than buying cheaper items several times
  14. Talk about money with your family – Being open about how to manage finances and your financial goals is one family discussion you should not avoid.
  15. Pay your bills on time – This saves you from having to pay extra money on late fees and reconnection charges.
  16. Create a realistic budget and stick to it – Many budgets fail because they are unrealistic.

What money rules do you live by?