Perhaps it is not so obvious to everyone to understand that if you have to borrow money then it means you cannot afford to make that purchase, that trip, or anything else.
A good rule of thumb is to check whether it is possible to make the purchase twice without impacting our budget.
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 finances:
- 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 #18 | Spend less than you earn
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 #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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