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Seven financial rules that can never be violated


When it comes to managing money, there are a few rules that you should always keep in mind. Here are 7 basic rules:

1. Plan for retirement

Save money for retirement. Although you can claim that you will work until you die – this is not the best plan. If you become disabled, chances are high that you will no longer be able to work. Also, with age, disability decreases, so start collecting money for a happy pension right now.


2. Do not spend money like a billionaire

Live within your means. You probably heard this a hundred times, but it’s worth repeating. This rule will save you from many troubles. This rule will work in a difficult time when it comes to finances. Spending the money and living beyond your means will most likely lead to debt.

One of the rules to live within your means is to carefully monitor your income and expenses. You just need to know how much money comes to the family budget and out of it. Thus, you can accurately avoid over expenditures every month and not rely on credit cards to overcome the difference.

3. Prepare for the worst

It is necessary to prepare for emergencies. This is one of the most important rules, but many Americans do not have stocks in the event of an emergency. A recent study by Bankrate found that most consumers do not have stock in the event of an emergency, for example, $ 500 to repair a car or a medical bill of $ 1000.

4. Do not be guarantors

Although it may seem heartless, bail for someone’s loan agreement can create you a lot of trouble. Do you really want to be responsible for the fact that someone does not pay your loan?


In addition to liability, surety lowers your credit rating. You can lower it even more if the person whose guarantor you are is not paying on time.

5. Constantly manage your credit

If you, like most Americans, have one credit card, you should constantly monitor it and pay bills on time and in full every month. However, this is not enough for a credit rating. You need to actively manage the card.

An important part of credit management is to order a copy of the credit report every year. This will let you know if there is an error that needs to be fixed. Checking the report will also allow you to see other credit accounts opened in your name without your knowledge.

6. Agree

Do not be shy when it comes to your money. This is especially important when it comes to large purchases, such as a house or car, or about wages.

Surprisingly, only 38% of the millennials are negotiating their first salary, according to the NerdWallet study. This is a big mistake because employers stated that they could actually offer a big salary. Three-quarters of employers told NerdWallet that they could increase their supply by 5% -10%.

7.  Be careful when lending money to friends or relatives

At some point, a friend or family member can ask you to borrow money. Although you want to help – this is not the best idea. If you still give someone money, imagine that this is a gift and you cannot give it to him. Thus, you will maintain a good relationship with a friend or relative.

Saida Safikhanova