3 simple personal financial rules

Personal finance seems to be one of the subjects where there is a lot of nonsense written as a good suggestion. There is a thin line between giving financial direction and promoting the next rich quick scheme. You will hear about this 10-point plan or 7 of these habits but if you want to go directly to his heart, there are only 3 rules you need to follow to make sure you are finished rich. Indeed these three rules will not make you Donald Trump during the night but live by them will ensure you are in front of 80% of the population.

1. Spend less than you produce.

If your money runs out of length before your next payment is due at the end of the month then you have a problem. You must start recording what you spend and then cutback. Everyone has a little slack in their monthly expenses – we loosely in that case “Latte factor”. Find this indulgence and cut into pieces. You don’t need to enter the sickle and switch back to the lifestyle of the stone age. You only need to make sure you live in your means. If you clean up £ 1000 a month then don’t drive JAG – keep it to the old Corsa! Charles Dickens put it the best in David Copperfield, “twenty-pound annual income, nineteen six annual expenses, the results of happiness. Annual income of twenty pounds, annual expenditure, and six, the results of misery.”

2. Enter 10% of all you make to the bank

Steady drops will always fill the bucket. Many Mickles make Muckle. But you want to put it, everyone knows that small amounts immediately add from time to time. The best way to describe why you should put 10% of your salary into the savings funds written many years ago in the book “The richest man in Babylon” by George S Clason: “Now I will tell the strange truth, the reason I know is not. When I stopped paying more than my income, I managed to hang out too. I wasn’t shorter than before. Also, it’s been a long time, whether the coins came easier than before than beforehand than before.. Of course it is the law of the gods who are to him Who keeps and spends certain parts of all his income, will gold come easier. Likewise, what’s the empty wallet whether gold is the most avoid? Does it really want it? Gratification of your desires every day, a gem, a little jewelry, better , more food; things quickly lost and forgot? or whether it’s substantial items, ema s, land, livestock, merchandise, investment generate income? Takes coin from your wallet brings the first. The coins of you Leavest in it will bring Latt Er. “

3. Don’t miss payment

With lost payments, you not only allow yourself to lose payment costs but you will also damage your credit record. Only one payment missing leaves the stain on your record that can take a long time, long ago.

After skipping payments on your credit notes means you tend to get the best prices available banks. Your mortgage suddenly will be £ 600 a month instead of £ 550 a month. Your car loan will be £ 109 instead of £ 92. It might not mean much more than a month but when you multiply this additional fee for a period of 3 years or 25 years, you suddenly start seeing how much you can be punished for a very small mistake , Autored your credit report to ensure this doesn’t happen to you.

By following this simple rule you will never know the feelings of banks that charge you £ 30 to discuss your overdraft limit; You will never go to take money from the bank just to be told that you have insufficient funds; You will never take over; You will never have a night without sleeplessly worrying money; You will be able to buy the item you want with cash rather than having to take an expensive credit agreement.

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