Do you know the PERSONAL FINANCE Rules.?

PERSONAL FINANCE RULES

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1.Pay Yourself First. 



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2.Spend Less Than You Earn. 



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3.Pay Bills On Time or Early. 



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4.Avoid Impulsive Purchases. 



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5.More Assets, Less Liabilities.



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6.Prioritize High-Interest Debts. 



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7.Automate As Much As You Can. 



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8.Understand Good vs Bad Credit. 



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9.Build Multiple Streams of Income. 



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10.Focus On Earning Before Investing. 



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11.Create and Stick to a Healthy Budget. 



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12.Live Within Your Means, If Not Below. 



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13.Understand Your Personal Tax Situation. 



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14.Net Worth Is More Important Than Salary. 



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15.Fully Understand And Track Your Cash Flow. 



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16.Find Ways to Minimize and Eliminate Expenses. 



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17.Build An Emergency Fund (3-6 month of expenses). 



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18.Cancel Any Unused Subscriptions and Memberships.



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19. Adopt the 30-Day Rule

Similar to the 10-second rule but for more expensive things.

Thinking about getting that diamond encrusted iPhone?

Wait 30 days to see if the urge is still there.

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20.Build an Emergency Fund
.Crazy things happen to normal people.





The more things that you have in your life, the greater the chance that something bad will happen that will require money.





For example, I’m married with 4 dogs, a house, a car, and a ton of computer equipment.





If anything happens to any of these people and things in my life then I need to make sure I have money to fix the situation quickly.





This is why it’s important to build an emergency fund.





One awesome side effect of an emergency fun is that it offers you a peace of mind.





Sure the unknown can be quite stressful but when you have money saved up to take of it, it makes things a little bit easier

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21. Don’t Worry About What Other People Think or How They Spend Their Money

I have a friend that buy Rolexes and another friend that will complain about a $5 beer.

I don’t worry about how they spend their money because it is their money and I don’t want to get caught in a comparison trap.

I also don’t worry about what other people think. This is obviously easier said than done but these people aren’t part of my goals.

In my partying days I would buy bottles of champagne just to show off. My “friends” would drink every weekend pretty much on me.

One day I lost all of my money and they asked if I was going out.

I said sure but I couldn’t buy bottles.

I never hung out with them again.

11. Set Time Every Month to Review Yourself
This not only includes your finances but your life as well.

Are you staying on track? If not, why not? If so did you encounter any obstacles?

It’s very easy to get caught up in the hustle and bustle of life and not take the time to review until it’s your birthday or New Year’s Eve.

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