Like snowflakes, no two budgets are exactly the same. We approach our finances from all different angles: you might have a golden nest egg or a pit of college debt; a chubby trust fund or holes in your pockets; you might be living check to check, or have a comfortable sum in a bank account.
And here we all meet in the middle. So first, let's lay some ground work for finance. Here are ten money rules that are hard to argue about.
1. Don't spend more than you earn. Cardinal rule number one. When dieting, if you want to lose weight, you have to burn more calories than you consume. Simple math. The same calculations apply to finance: if you want to be rich, you can't spend more than you earn.
2. Start a retirement account. Snoresville right here, but the sooner you start a retirement account, the more it'll pay off later. Consider it a notch in the belt of maturity: if you can see the logic of saving early for retirement, you've arrived. Well, that and being able to down hard liquor without wincing.
3. Track your day-to-day spending. This doesn't have to turn into receipt holding and excel spreadsheets unless you get giddy about that sort of thing. We'll talk about easy ways to keep track of your little spending breadcrumbs later. For now, just realize the more you know about where your money goes, the better decisions you can make.
4. Try investing. Right now, a good ol' savings account won't earn you much interest (read: free money). May as well bury your paycheck in a hole. Check out other money storage options with higher returns. It's an effortless way to grow your pot (of money, of course).
5. Drive a used car. Don't buy a new car. Just don't. It's quite silly for 97.8% of folk.
6. Be generous. Give gifts! Give to charity! Give to your church! Keep your hands open, willing, and generous rather than in a tightly balled greedy fist. It's just money after all.
7. Live simply. We're surrounded by excess we don't really need. Plus, it costs a lot of money. Live simply, live richly.
8. Set up an emergency fund. Hat tip to Dave Ramsey on this one - and he's so right. Make a pot to dip into when the times are rough. Watch your stress diminish in those adrenaline-packed moments.
9. Pay off your debt. Back to basic math here. The sooner you pay it off, the less you end up owing. Don't go around carrying debt. That's silly, you smartie!
10. Find a healthy medium. If you're a scrimper, don't be afraid to spend money and go on a trip! If you're a spender, maybe pack a lunch instead of going out.
That's the list. Did I forget anything? Any tips and tricks you'd like to share? Add yours in the comments below!