17/07/2021
1. Be motivated and consistent
🌼Your reasons for wanting to take control of your finances should encourage and motivate you to be consistent when you’re building good money habits. Consistency is key. But, it’s also quite difficult to be consistent when it comes to mone
2. Keep track of your finances
🌼This is one of the most important rules! I’ve heard many Finance gurus on YouTube say that if you’re keeping your finances on track, you’re already better than the majority at personal finance. I think this is what makes or break your financial future because it really puts your spending in perspective.
"Control your money or it’ll control you."
3. Pay yourself first
🌼Again, this is another important rule. When people say “pay yourself first”, it basically means that whenever you receive income, make sure you put money towards the most important things straight away. This includes paying back any debt, building an emergency fund, savings, rent, bills, investments, and retirement.
4. Set up the right bank accounts for you
🌼I found that having different bank accounts is what made it easy for me to track and control my expenses. Also, having different saving accounts and wrapper allows you to save, grow, and keep your money safe.
5. Budget- spend less than you earn
🌼If you’ve followed the previous rules, you would have laid an important foundation for building a secure financial future. Now, it is the slightly more difficult task of actually practicing good spending habits.
6. Build an emergency fund and cash cushion
🌼When I started learning about personal finance, one of the main lessons I learned was the importance of building an emergency fund. One of the main reasons for getting on top of your finances is that you can live comfortably without any financial strain and gradually grow your income to live the life of your dreams
7. Pay off your debt
🌼It is imperative to gradually eliminate any sort of debt you might have before you start thinking about investing.
8. Build multiple streams of income
🌼This is one of the most valuable lessons in making money. A lot of millionaires and billionaires attribute their wealth to their multiple streams of money.
9. Invest wisely
🌼This is for only when the previous steps have been mastered. For someone like me, investing might sound like something only adults who have their life, money, and career established do. But it’s something that everyone who is out of debt and has a good emergency fund built should think about.
LASTLY,
10. Think about pensions, wills and insurance
🌼Preparing yourself for the future if you’re a young adult might seem unnecessary and boring, but all the books I have read stress the importance of contributing to your retirement as soon as you can. If you want to live a comfortable retirement, you actually need a lot more money than you think! It’s easier to start contributing when you can.
