This is the Number 1 rule!! Everyone needs to learn how to save money and put it away somewhere and not touch it. Everyone needs to have a safety net
of saved money. This is for emergency situations. Why is this the number 1 rule? Because if you don’t have this in your system then there’s no way you
can get rich. How many times do you hear about people winning the lottery and in 5 years all the money is spent or their filing for bankruptcy? Because
they don’t know how to manage their money right and save for future costs or unexpected life events. Also, if you plan on owning your own business or
buy real estate, if you start making money you’re going to have to save and manage your money efficiently.
Try to save 10% of your income. Pay yourself first. If you pay yourself first and put that money away where you can’t touch it then it’s like you don’t have
it so you won’t spend it.
Save 6 months worth of expenses for emergency money. Incase of an emergency…for example, if you get sick or hurt yourself and you can’t work for a few months, you
always want to have money saved.
Create a budget for yourself. A budget is basically for you to see what you bring home in income and what you spend. After doing this you will see exactly
where your money is going and how much you’re saving every month. And yes there should be money left over every month that you’re saving. Go into the Financial
Tools section of this site and print out the Monthly Income and Expenses and use that sheet to track where you are at with your money.
Having good credit is a MUST. I say this because for the 2 big purchases that you will ever make which is your house and a car…the better your credit is, the
better the interest rate you will get which means you’re saving money every month.
For example – buying a house that is $150,000 and you get a 30-year fixed loan if your credit is good say you would get a 6% interest rate your payment
would be roughly $900 a month now if your credit isn’t that good say you would get a 7.5% your payment would be roughly 1,050. So for having a good credit
score you would be saving $150 a month. That’s a nice amount of money to be saving and applying to other things in your life.
To have good credit – having a checking and savings bank account for a good amount of time, pay your bills on time (DON’T miss a payment) being at your job
for a long time and not having too many credit cards in your name even if they are paid off, it will still hurt your score.
Another thing about credit is that employers are now even looking at credit scores. Employers want their employees to have a good credit score because that
makes them more responsible as a person.
Tip - Get credit cards that have no annual fee on them.
Check out: http://www.annualcreditreport.com Here’s more
on: Steps for Improving Your Credit Score
As long as you have debt, you have to keep working. Everybody wants to get to retirement and not have to work anymore and the one way to do that is
having no debt. Plus---having debt causes enormous stress. And when you have debt, bills keep coming in month after month. Not having debt is a GREAT feeling. Trust
me I know!!
Managing Debt – pay it off. Stop going out for entertainment or cut back on items and start paying that debt off. In the Financial Tools section of this site you
will find forms that are very helpful that will help you track your expenses and help you pay off debt.
Cash is King - Go Cash Only
You always want to have cash in a bank account at all times.
Try keeping your credit cards at home and pay for everything in cash. You’ll see you’re going to start saving money. Never ever have all your money tied up into
investments. Always have money available in a quick reach for emergency situations.
Live Frugal…Wants vs. Needs
Stop buying dumb stuff you don’t need. Go into the Financial Tools section of this site and use the forms Weekly Spending and Daily Savings to start tracking
your buying habits and see if they are wants or needs and try to start saving money on a daily basis and get out of your old, unconscious spending habits.
If there’s a sign saying ‘free financing for a year’ or whatever, think twice before leaping. You don’t have to buy the item just because it has that deal. Might
be a good financing deal but you’re now more in debt.
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