Three Step Change Your Life Rules of Investing Yourself and Money the Rules of Money in 2021
BASIC HABIT FOR LIFE
1. PAY YOUSELF FIRST
This is an old rule of thumb that helps you save rather then spending all your money. even if your budget is tight as soon as you get paid put some money into savings savings first rather then last means you are much more likely to save money instead of spending it.
2. Add your raise to your savings account
once you have achieved a salary that funds a lifestyle you are content with don’t move significantly above that. when you got a raise put it into savings rather than spending it. this can help avoid the problem of lifestyle inflation while growing your savings significantly.
PROFESSIONAL HABIT FOR LIFE BEST
1. When an appliance breaks buy a new one if the appliances is 8+ year old or the repair would cost more than half the replacement cost. this goes for things like fridge ,Tv, dishwashers ,etc get an estimate on the repair cost if that cost is 50% or more of the replacement cost you are usually wisher to just replace the broken appliance and for older appliance you might consider doing the same even if the repair costs are lower older appliance are more likely to have subsequent issues with other parts.
2. Use 1-25 of an unexpected windfall for a treat but bank the rest whether it’s gift inheritance or na unexpected bonus use just a small percentage to treat yourself right away put the rest in the bank and give yourself a few months to think about wisest way to spend that unexpected money.
ADVANCE HABIT FOR LIFE
1. 50/30/20 rule for budgeting If you’re new to budgeting, try allocating 50% of your take-home pay towards necessities (food, shelter, utilities, clothing, etc.), 30% towards lifestyle choices (vacations, gym fees, hobbies, cell-phone plans, etc.), and 20% towards financial goals and priorities (extra debt payments, savings, etc.). This isn’t a perfect budget, but it can be a good place to begin. Click here to learn more about this budgeting style.
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2. Track at least your problem spending areas Some people like a very detailed budget. Others, not so much. If you don’t want to track every line item, track at least those areas where you tend to over-spend, whether that’s dining out, buying new clothes, or spending on kids’ items. This can help you control your spending without being bogged down by an over-detailed budget.