5 Personal Finance Rules to Follow to Become Financially Free

Most of us would be interested to know if there are any personal finance rules to follow to attain financial freedom. And the good news is, yes there few rules that can help you manage your finances in a better and organized way. Managing your finance efficiently is a struggle for most of us. But it is very much important to manage your finances properly or else the repercussions can be gruesome. Initially, you might just worry about not having savings but it can also lead to an imbalance in your retirement phase.

Handling finance properly is not a day’s job and it comes with practice. Once you get started with managing your finance in a better way then, you can explore other ways to boost up your savings. As you become a pro, you can create your own personal finance rules to add to the list as well.

We share with you 5 Personal Finance Rules that would help you to handle your finances in a better and efficient way. These personal finance rules are like a guide to show you a path to manage money and as a result get a groove of some dollars in your account.  Savings add financial security to your life and give you the confidence to face any financial situation.

5 Personal Finance Rules to follow to get started:

  • Cut down on unnecessary things and add that money to your savings

The first personal finance rules to follow is starting saving as much as possible and start it now. Every month after you get your paycheck, you will clear off the necessary bills and make essential expenses on housing, food and utilities. Keep some money for your transportation and other important kinds of stuff. Now, analyze what you generally do with the money left. If it is spent on unnecessary things that you can cut down then, think what you can do with the money left.

The best thing to do is put at least 50% of the money left for your savings. This will be good kick start and it won’t pinch your budget as well. In few months, you’ll realize you’ve built your saving nest already and you just need to boost it up.

  • Look for investment options

One of the best ways to handle your money is to invest it wisely to get the best returns. For beginners, you might always feel the risk of losing money and unsure of which option to go for. As there are lots of different ways where you can invest and choose based on the risk level such as mutual funds, stocks, peer-to-peer lending etc. For beginners, you can opt for investing in small number and with a low risk through various options. Even a small investment will give good returns in the long run. You can do a research online or check with a reliable financial advisor for more details.

  • Never encourage credit card debts

Having a credit card debt can be alarming as most of us use the credit card for non-essential purchases, luxuries and impulse purchases. Paying interest for those things and having debt can affect your credit score.

But, wise use of credit cards can be beneficial as well. If you clear your credit card bill on time and use it to the amount that you can repay, then you can have a good credit score.

  • Get thoughtful about your regular expenses and pay full amount only where it is necessary

You need to keep a track of where all your money goes on a monthly basis and so, start by analyzing your expenses. For the regular purchases, check for coupons or discounts available. Wait for the year-end sale for any major purchase.

  • It’s your money so make every move meaningful

Set a budget for everything you buy to be it a house, a car or grocery. It is important to know your affordable limit and make every purchase meaningful. Even if you can afford a larger home, a new car etc. you don’t have to buy it when you are already comfortable with the things you have.

Summing up:

By following the 5 above mentioned personal finance rules, you will be able to set yourself in the right direction for a better financial future. It’s okay to slip occasionally from the planned schedule sometimes, but you need to know how you can set it right. You make a small unplanned purchase which refrains you from saving the set amount for the month; don’t worry you can balance it the next month. Handling personal finance efficiently is a learning process and when you start saving more than you spend, then, you will know that you’re on the right path already.

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An Updated Outlook On Bitcoin

For a few years, bitcoin was easy to ignore. Ardent supporters still argued that it was the future of currency, and some advised that it would be wise to buy some bitcoin before it truly took off. But the investment was considered risky, and for the most part, bitcoin didn’t pervade our daily lives. Even now, you can use bitcoin for a financial transaction in some cases, if you go out of your way to do so – but the cryptocurrency is far from becoming any sort of sweeping replacement for regular money.

As a financial asset, however, or a commodity, bitcoin has become something entirely different than what it was a few years ago. Only a little over a year ago headlines were made when bitcoin topped $1,000 to break its personal record. Now Bitcoin is trading around the $9,000 range (and last winter it briefly bounced up to over $19,000). It has become a serious investment asset, and one well worth taking a new look at. Here is a little bit of information about where things stand.

More Merchants Are Using Bitcoin

Bitcoin adoption among mainstream merchants has been slow. As stated above, bitcoin is not on its way to becoming a replacement for mainstream currency. However, to dismiss the idea of more everyday use entirely would be to ignore the facts. Just earlier this year news broke that 80,000 new merchants in Europe would be gaining the option to access crypto. That’s certainly not insignificant, and the more news we get like this the more potential there is for bitcoin’s value to spike due to increasing utility (though it should be noted that this particular news back in March doesn’t seem to have had a major effect).

There Are More Viable Alternatives

Gone are the days when bitcoin was alone at the top of the heap of cryptocurrencies. Granted it’s still the most valuable of the bunch by a fairly significant margin – but a number of its competitors have gained meaningful shares of the market. Litecoin has always been a sort of lesser version of bitcoin and remains so, but is a more appealing alternative to many; bitcoin cash has become one of the most valuable cryptocurrencies; and other alternatives like ethereum (or, technically, ether) and dash have also become more legitimate over the past year or so. These currencies thrive not because people are simply interested in diversifying but because most of them are designed to satisfy consumers in a way bitcoin doesn’t. That gives each one its own unique growth potential within the crypto market.

Regulation Is A Growing Concern

Some time ago a thorough look at bitcoin regulation (which is worth a full read if you’re interested) stated that regulation of bitcoin was a murky grey area. That’s proven to be a very prescient common because it remains so today. As a fully decentralized cryptocurrency, bitcoin simply isn’t subject to universal restriction or regulation. That’s generally a good thing. However, as a result, it is subject to the whims of different governments and financial institutions around the world – some of which have started to take a closer look at controlling cryptocurrency trade. It’s the main story that’s constantly worth keeping an eye on for those intrigued by crypto investment.

Bitcoin Still Leads Cryptocurrencies

Just in case it hasn’t become clear by this point, it’s important to know that bitcoin is still the leader among cryptocurrencies. As of the time of this writing, bitcoin cash is the second most valuable, at roughly 16 percent of bitcoin’s total value. Many still believe other cryptocurrencies will catch up eventually, but bitcoin is king for now.]]>

Boost up your Emergency Fund by $1000 in 3 months in 17 Simple Steps

What, $1000 in 3 months? How? Really!!! Saving $1000 in 3 months would sound like a gimmick to you if you’re among the majority of Americans who muster to even save $400. Yes, that’s the challenge to pad up your emergency fund by %1000 in just 3 months. By following the 17 simple steps, you can easily save more than what you’re doing now. You can even make your own list by simply noting down the areas where you’re over-spending and where you can cut down. That doesn’t mean you need to become stingy and cut down all the things you love. There are other areas where you might be spending more than you should and just need to identify such areas.  

17 Simple Steps to pad your emergency fund:

We have listed down 17 simple steps which you can follow to boost your emergency fund. Additionally, you can add your own steps as well and start following them gradually.
  • Hunt down all the spare change!

What can be more delightful than hunting down the treasure! Maybe it’s a small amount yet significant when you least expect it. Look for any spare change you kept in your jeans pocket, wardrobe, bags etc. You might get a good amount in total which you can put it in your savings.
  • Redeem credit card points for cash rewards!

You might be thinking of using the points for a vacation but you can plan for it later. Instead, opt for cash rewards and add it to your emergency fund.
  • Collect all the gift cards

Gather all the gift cards received and use it for any essentials or you can even sell it online.
  • Utilize all the coupons

Before heading for shopping, look for any coupons online or sale offers in the nearby shops.
  • Get the best out of customer loyalty programs

Check if you can use them in your gas station or drug store before it expires.
  • Share your equipment

You can share your equipment such as a printer or a lawnmower with friends and split the cost.
  • Trade your skills

If you have a skill which is in demand or board pets or garden, you can barter your skills. Be creative and try your luck.
  • Sell your old things

Be it electronics, books or anything, you can get a good resale value for all. Sell the kinds of stuff which are no longer of use to you. Find a nearby shop to sell it or do it through websites such as eBay, Amazon etc.
  • Share any memberships with friends or family

Form a group of people who can share your membership and its costs.
  • Skip the gym membership

Take a break from your gym and form an exercise group, yoga or walk in a park.
  • Opt for free entertainment

You don’t have to shred so much money on entertainment always, instead look for any free events such as free movie night, fair etc.
  • Grow your own plants, herbs, etc.

Instead of buying, you can grow herbs in a pot such as a thyme, basil etc.
  • Make gifts for your loved ones rather than buying

Bake cookies, hand-knit scarf or anything, you can make any creative gift for your loved ones. Your efforts would show them their importance.
  • Aim at bulk purchase for the regular stuffs you buy

The regular stuffs you use can be purchased in bulk and you can save some money as well.
  • Do-it-yourself

A simple cleaning, lawn care etc. can be done by yourself so think before you hire someone for it.
  • Analyze your transportation costs

Give a thought about how you commute on a daily basis and if you can reduce your car trips to save some fuel. You can even use public transport and sometimes walk or ride a bike to a nearby place.
  • Pack your lunch

You can sometimes cook and pack your lunch. Maybe thrice a week to save some dollars plus it’s healthy.

Summing up:

Follow the 17 steps mentioned above to boost your emergency fund for a financially secured future. You can gradually add your own list of areas where you can cut down and save more.]]>