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 #06 Dedicate 30% of income for personal expenses
Plenty of people suggest using no more than 30 percent of monthly earnings for personal expenses, i.e., travel, dinners out, birthday gifts or subscriptions to gyms, newspapers and more.
Good financial advice #05 Devote 20% of income in savings
A good way to save is to follow the 50-30-20 rule that suggests using 50 percent of income for necessary expenses, 30 percent for personal expenses, and 20 percent for savings.
Good financial advice #04 Spend one minute of money a day
To be always sure of one’s financial and, therefore, economic situation, one only needs to devote 60 seconds each day to money management. How? Checking on investment trends, news, and important news.
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