What are the five rules of finance?

Are you struggling to get your finances in order? You’re not alone. Many individuals have difficulty understanding the basics of finance and making smart decisions when it comes to their money. To help you out, here are five rules of finance that everyone should follow.

  • Live Within Your Means: The most important rule of finance is to live within your means. That means spending less than you make and saving the difference. Living within your means will help you avoid debt and prepare you for unexpected expenses. 
  • Make a Plan: The key to financial success is having a plan. Without a plan, it’s easy to overspend and make decisions you’ll regret later. Take the time to create a budget and set financial goals. This will help you stay on the right track.
  • Create an Emergency Fund: An emergency fund is a must for any financial plan. It will give you peace of mind knowing you have a cushion if something unexpected happens. Aim to save at least three months’ worth of expenses in an emergency fund.
  • Make Smart Investments: Investing can help you grow your wealth and prepare for the future. Before investing, it is important to do your research and make sure you understand the risks involved.
  • Save for Retirement: The earlier you start saving for retirement, the better. To ensure a comfortable retirement, you should be contributing at least 10-15% of your income to a retirement account each month. 

For more information on investment assets and financial management, you can rely on Future Value, a pool of financial experts that can guide you through this and help you in your investment journey.