50 Golden Rules of Finance, Everyone Should Know About

To maintain your financial and economic system, must have to follow these 50 golden rules. It is very important to be a long-term investor for reasons
50 Golden Rules of Finance, Everyone Should Know About

To maintain your financial and economic system, must have to follow these 50 golden rules :

  1. Earn money or save money ? Being rich is not how much amount of money you earn, but how much amount of money you save.
  2. Take risk with rewards: If you are investing somewhere and taking risk means you must have to take care of it’s reward hand to hand.
  3. Be clear about your priorities: Priorities means make sure that you make a room in your budget to reach your goals by saving. means in this case your priorities should be room or budget , you must have to decide.
  4. Separate saving and investing accounts: Don’t join both of your accounts(saving and investing). These both account might be use for different different purpose for your goals, so don’t merge.
  5. Set milestone for your goal: To reach the destination, you must will have to know about that place. So simply set the ideal deadlines and create time slicing, will help you to reach out to your goal.
  6. Ignorance is the worst thing: In finance, you can’t ignore everything. In normal life people often say we must have to ignore most of the things for mentally relief but in finance this is very wrong step.
  7. Realistic Financial Goal: Be practical, keep your financial goals realistic and constantly review your progress.
  8. Be debt free: To be mentally satisfied, firstly remove all of your debts, will ruin your life everyday. You can’t do much things with mentally distractions.
  9. Retirement Savings: People often use their retirement income in share markets and kitty parties. Sometime it’s ok, but don’t be addicted to this. Never touch your retirement savings for these kind of purpose.
  10. Don’t be procrastinate: Most important, don’t procrastinate and start setting your financial goals.
  11. Golden rule:  Save first.. Spend later.
  12. Increase savings but don’t focus on decreasing basic expenses: Increase your income and increase your savings. Don’t focus more on decreasing your basic expenses.
  13. Don’t spend on things, won’t long time matter: Don’t spend on things which won’t matter to you after some days. Spend money in things, which actually needful for long term prospects.
  14. Don’t put all eggs in one basket: Simple but very important rule. If you are going to invest somewhere that doesn’t imply that you put invest all of your money in the same things. Suppose, if you’ll be fail that means you’ll loss everything.
  15. Have patience: Have patience, money will come.
  16. Have proper knowledge before investment:  Someone said and you got ready to invest there because someone else earn is a very wrong approach. Always invest your money after proper knowledge of that industry, business or work area.
  17. Start small: To be successful, no need to spend much. You should take risk but not extra than you actually need. Even you can start from small things. After some earning, you can expend it in big deccan.
  18. Calculation: In finance, you must have to calculate your outcome and expenses in regular basis. If you invest your money always calculate rate of interest and money as well.
  19. Start saving: From today, from now start saving
  20. Use money to make more money: This is the very great approach that to use money somewhere, will make more money.
  21. Don’t live on credits: Avoid this approach. Today, this generation people mostly use this approach.
  22. Don’t give too much credit: Some people says this is the good approach to make money. But people shouldn’t give much credit to anybody.
  23. First think and then invest: Invest where you have gut feeling or calculated risk that money would come back.
  24. Don’t invest on emotional basis: Eg; one of your girl friend say to invest somewhere, you invest doesn’t make any sense. Have a clear mind when investing.
  25. Learn self control: Self control in investment, self control in expenses, self control in emotion are very necessary points. 
  26. Stop being dependent on temporary sources: Some people depended on temporary source of income but normally it should be avoid. Please care, I don’t mean, permanently solution is only government job.
  27. Save tax but pay it: Save on taxes as well. But don’t cheat government and public. Always, think about it.
  28. Don’t cry for money: Approach may be wrong or sometime circumstances don’t support that doesn’t mean everything over. 
  29. Invest in different ventures: If one fails, you had a backup plan.
  30. Don’t gamble: Avoid this approach like daily trading and gambling. This may give you lot or take from you everything. So avoid.
  31. Have patience: Short term basis is not good for anything. So don’t take any investment or planning for short term basis.
  32. Your permanent expenses: Simple calculation to hold something in your in-bound means, your expenses would be not more than 50% of your income. Or work hard to achieve that level.
  33. User offers/coupon /cash back options: This is not a cheap approach but very interesting thing actually. When you need to buy something. But it doesn’t mean you don’t buy anything since offer/cash back or coupon is there.
  34. Try not to spend in the first week of salary/ pocket money: Majority of people has a temptation to spend money in the first week of pocket money or salary. So, resist the temptation.
  35. Maintain a financial calendar. It actually helps you to track the money. In next month, you can actually cut the unnecessary spending only if you know where it went. I used Monefy – Money Manager – Android Apps on Google Play in the beginning but now I use pen and paper.
  36. Pay yourself first. Pay others later. If you spend money on yourself first, you will surely find your way to pay others later. If you do it vice versa, you might not find your way to pay yourself.
  37. Don’t become the slave of money. At some point of our life, we unknowingly become slave of money. We start working for money rather than the money working for us.
  38. Always split bills. Seriously! No excuses.
  39. Buy what you need not what you want.
  40. Always go to market with an objective. If you are aimless, market will hypnotise you to buy things that you don’t need. You don’t want to lighten your pocket, right?
  41. Understand taxes in your country. Even before you get your first payment, make sure you know how much your boss/ company is paying you after deducting taxes.
  42. Invest. Your money should grow at a rate of 6 percent or more. Buy bonds or invest in mutual funds or anything. Invest.
  43. Become financially literate. Unfortunately, we are not taught in schools how to manage money. So, read from internet. I use Investopedia – Sharper Insight. Smarter Investing. and have read few books on personal finance and investment. (FYI I’m just starting).
  44. Use cashback sites: If you do online shopping a lot, then use cashback sites. Even regularly check debit card reward points because every points have expiry time. So use your wallet money on time.
  45. Maintain emergency fund: Always maintain emergency fund, preferably in FD because of high liquidity (meaning, you can close FD and withdraw money anytime).
  46. Saving calculation formula: Always remember SAVINGS is actually what you keep aside once you receive you pay slip and not the left over portion after expenses.
      • SAVINGS = INCOME – EXPENDITURE (WRONG) take it other way round which will hardly effect the mathematical relationship.
      • EXPENDITURE = INCOME – SAVINGS (RIGHT)     
  47. Don’t do day trading: If you are into trading, don’t do Day Trading. Day trading is the best way to lose all your money. Only do positional trading.
  48. Pay all taxes/government bills: without fail and if possible pay in advance.
  49. Choose people to spend time with: Spend more time with the people who spend money with your mindset. Else you may get influenced by other people to spend more.
  50. And my favourite , read Rich Dad Poor Dad book