I am not one for new year resolutions, I always believe that if you want to change or try something new you shouldn’t wait until January 1st.
My social media feeds over the festive period was full of easy to follow weight loss rules or how to get fit in 10 easy to steps. We all like rules that are easy to follow, as they are clear and we know instantly if we are following them and in return we receive instant satisfaction from “doing the right thing”. Simple rules outside of our own specialist subject make it easier for us to understand and can help to hit a goal.
With this in mind I have put together my own money rules.
1. Keep 3 – 6 months emergency fund.
2. Avoid high interest debt.
3. Buy all your day to day items on acash back/reward credit card. Make sure the balance is cleared each month infull!
4. If you are an employee, mostemployers will match your pension contribution.
5. Your mortgage should cost roughlyless than 25% of your net monthly income.
6. You should save at least 15% of yourincome.
7. The rule of 72! Tells you how longit will take your investment to double. For example if stock market returns are6%, 72/6= 12 years to double.
8. Have sufficient life and criticalillness cover in place.
9. Before spending on large purchaseswait 24 hours and ask…Do I still want it? If you do, go ahead and buy it.
10. Save for your retirement first, your children come second.
11. Value time over money. You can’t buy time.
These money rules are not set in stone and only to be used as a guide. Every individuals situation is different and some might not be possible. I would suggest some of these are good habits rather than rules!
I hope it might be possible for you to take on at least one good habit moving forward, no doubt some you will be doing automatically, as it is just common sense!