“Are You Breaking the Money Rules? Discover the 19 Lies That Could Be Costing You a Fortune!”
6. Save a Fixed Amount and Leave It Until Retirement
According to Charles Schwab, it’s important to save for retirement and prepare for how you’ll spend your money once you retire. But it’s not as simple as saving a certain set amount. You should regularly review your retirement plan savings to adjust it to your desired lifestyle and goals. Research says that even small increases in savings can make a big difference, especially when placed in retirement savings vehicles.
7. You Shouldn’t Discuss Money with Friends
Money is considered a taboo topic that we hesitate to discuss even now. However, a recent study showed that money impacts our lives to a greater extent. People should have money conversations with their close relations to avoid money-related misunderstandings. Not just that, talking about money with friends and colleagues can increase your financial knowledge.
8. Stick to the 50 30 20 Rule
This rule only works for some. Covering necessities with 50% of income will be difficult for someone with a high living cost. Moreover, spending more on your wants than saving can create problems if something unexpected happens. So, you should assess your goals and needs and organize your money accordingly rather than rigidly sticking to this rule of thumb.
9. Have 6 Months of Savings in Your Emergency Fund
Research shows that half of the participants felt distracted from work because of the lack of emergency savings and would be completely overwhelmed if an unexpected financial challenge arose. Six months of savings can be enough for everyone in any financial emergency. However, the stress of this rule can be a tough pill to swallow for many.
