Break These 5 Money Rules To Take Your Finances To The Next Level

For many of us, money rules help to take maintain and control our finances. However, the tried-and-true advice might not work and stressing over your personal finances still happens quite frequently ( hopefully it doesn’t happen every day ). At the time you start taking handle of your financial life, there are arbitrary money rules no longer result in higher savings or less debt. And you just want to break them so badly. Herewith Break These 5 Money Rules To Take Your Finances To The Next Level.

#1.  Focus On Pound Not A Penny

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Source: military.com

You could be living in an adorable house, having a great job but sometimes you still broke. Spending penny foolish may be a part of the reason. Every morning before work, you stop by a lovely store to pick up a donut. Grabbing a candy bar and soda while getting gas and a coffee after work. Though there is a list in your mind when shopping, you always throw a couple of extra things into your basket.

You might not notice as the amounts you’re paying are pretty small. Even if you do notice, you don’t care much about it again when it’s only a few dollars at a time. But the little things add up, and they add up faster than you think. We usually use cash instead of credit card for them, and of course, those cash transactions don’t show up when tracking spending in Mint, for example, and it’s easy to miss these small amounts.

Give yourself a cash allowance per week or month that you could track where it’s going and notice how these small amounts are adding up.

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#2. Credit Cards Is Bad

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Source: military.com

Today credit cards can actually help you save money if they are used responsibly. When you are savvy consumers, you know how to pay for goods and services with rewards credit cards. Some customers know how to take advantage of the “no interest” policy on items purchased on a store’s credit card. Plus, according to experts, building a good credit score is vital.
Choosing a card with no annual fees, and opting a rewards card only if you’re certain that you could pay off the balance each month because this kind of card typically has higher interest rates.

#3. All Debt-Free Before Saving Or Investing

Today when managing debt is becoming a fact of modern life, this is one of the money rules you totally should break. If your debt is relatively low-interest such as a mortgage or student loans, you better paying it off more slowly in order to take some benefits in favor of saving money first.
Saving money should be a top priority, along with paying down any high-interest consumer debt.

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#4. Always Save Up To 10% Of Your Income

Adding at least $1 to your savings for every $10 you earn is an old rule of thumb since 10% may not be a proper number for you to reach your savings goals. Realistically, most people need to save over 10% of their revenue to achieve what they need.
To find out how much you need to save to meet your financial goals you should focus on the amount of money you need saved in the end and work backward from there.

#5. Buying A Home Is Always Beats Renting

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Source: military.com

Purchase a home remains the centerpiece of the American dream. Many people can feel pressured to own their affordable “dream home.” And buying a home is still the best decision even if you can afford it? Maybe not for young people who find themselves moving from city to city for work. Buying is somewhat of one of the money rules to break.
There are pros and cons for both. You must look at your situation in order to make the right decision. And remember it is not always buying is better than renting.
There are many rules of money out there to manage your money. It’s easy to find guidelines that are meant to steer you toward a life of financial security. If you don’t want to end with some big financial mistakes beside getting a great job with high salary, keep your money rules wisdom.

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