10 Rules Piggy Lives by Financially
10 rules that I live by in financial aspect (I didn’t know I could come up with 10, yay!):
- Spend less than what you make.
- Use credit cards wisely – pay off credit card bills each month, make use of 0% APR offer for financing, use reward cards that accumulate points or have % cash back.
- Pay off “bad” debt – this includes any high interest rate debt that is not tax deductible, which is credit card debt for most people (there are pay-day loans which should be avoided at all cost anyways because of outrageous interest).
- Contribute to and fully utilize 401k – Most employers provide 401k these days, so contribute some or at least the % of employer matching (free money!) but also educate yourself of the available funds and pick wisely (hence the “fully utilize” part).
- Contribute regularly to saving.
- Develop your own investment portfolio – whether it be individual stocks or funds, but educate yourself first and invest in a style that suits you. I said “your own” because you should never just follow what others do because our needs, situations, and personalities are all different, so understanding yourself is essential here.
- Have a spending budget – this allows you to afford hobbies, gadgets, travelling, etc.
- Distinguish “want” vs. “need” – this is the most important to keep myself from spending too much because of how I LOOOOOOOOVE gadgets :)
- Invest in ourselves – classes, books, or things that contribute to our general well-being.
- Remember the ultimate goal – a reminder to be frugal and financial-smart but yet not becoming cheap :) In other words, balance is everything.
Originally posted 2007-04-12 21:40:49. Republished by Blog Post Promoter