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Home / Money

Five money rules you should know

 With money, there are certain blueprints you need to live by (Shutterstock)

Life doesn’t usually have one specific formula. Everyone has their own way of doing things and if it works for you, do not stir the pot. However, when it comes to money, there are certain blueprints to live by.

It’s not wise to handle cash carelessly because there is a very high chance you will regret it later on.

In order to have healthy finances that can sustain you for a long time, you should start embracing some of the basic money rules. Some might be hard to consistently follow but if you start training yourself early and build the habit of consistency, you will see the benefits.

Here are five cash rules you need to know about.

1.Save before you spend

Don’t wait until you spend on everything you want to before you finally save. Waiting until the last minute increases your chances of careless spending and emotional money thrills and in the end, you will have nothing left to save. This also delays your long-term goals and it’s likely to interfere with your important commitments.

You can handle your bills first to avoid missing deadlines then set some money aside for savings before you allocate the rest to other things.

2.Plan for the unexpected

Being prepared for the unexpected is something everyone needs to practice. This period of coronavirus pandemic has actually opened people’s eyes on the importance of have some form of back up because anything can change at any time.

You need to start signing up for things like life insurance and other emergency plans in place as early as possible.

3.Stay out of trouble

The only place money can thrive in is in integrity and discipline. In order to save yourself from the stress, always strive to clear your debts and loans on time and avoid trouble with the law at all costs.

Be diligent before taking up any projects and avoid getting conned into get rich quick schemes.

These steps ensure that what you worked for is preserved unlike those situations where people lose it all for not being keen early enough. Don’t just buy because you can afford it.

I get it, we all want to spend our cash from time to time as a way of rewarding ourselves. But you also need to be money wise especially because you don’t know what could come your way tomorrow.

While you might be making enough money to get all the luxuries you want, it’s much better to keep it intact as you plan for the future.

4.Prioritize goal setting

Doing things without any form of direction brings about too much confusion. It’s like participating in a race which has no finishing line. You will keep running indefinitely.

You should take time to work on short term and long-term goals so that you can easily gauge how to get there and what your progress is so far. Even, having no goals in mind makes it hard for you to make adjustments because you don’t know where to start exactly.

5.Never lend aimlessly

Once you start making money, you sort of become the backbone that holds everybody together. There’s nothing wrong with helping people out but there comes a time where you need to think twice.

You will have friends, family members and random ‘cousins’ who constantly borrow from you and if you don’t know how to say no, your bank account will be drained completely.

Don’t always make yourself too accessible to anyone that wants to borrow. Instead, try and make sure that whoever you’re lending to is being genuine and they’re not just borrowing for haphazard splurges.

International Literacy Day is coming up. When was the last time you read a book?
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