One rule that always applies to a good investor is to spend less than you earn. If, for example, you earn 2,000 euros each month you can consider that 1,500 will be devoted to expenses, necessary and otherwise, while the remaining 500 euros will be savings.
There are many best practices for managing money better and better…here are some fairly common ones to avoid missteps when it comes to managing your money:
- Create a financial diary
- 50/30/20 rule
- Spend one minute of money a day
- Set financial goals
- Set a periodic budget
Learn about other financial best practices
Good financial advice #19 | If you have to borrow you can’t afford it
Had it ever occurred to you that if you have to borrow money then it means you cannot afford to make that purchase. Learn to manage the budget you have, without having to take out loans–because it might say you can’t afford it.
Good financial advice #17 | live within your means
If you set as a goal to live within your means you will immediately understand what expenses you can or cannot incur to avoid having to ask other people or the bank for money.
Good financial advice #16 | Balance your portfolio every year
If you set up your financial plan with the idea that savings should be used only in emergencies, you will certainly avoid finding yourself without a savings fund to draw on.
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