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Nowadays we have thousands of financial advices and complex solutions that are being offered to us on a daily basis and due to busy schedules it is hard to keep track of all of them. However, it is always better to know basic rules that will help us guide through our financial decisions and manage our daily money routine. As long as you stay devoted to these rules, controlling income will not be complicated:
Rule N1: always take aside some percentage from your salary every month and put money in your savings account to cover cases such as emergencies, travelling and other things.This advice might be very simple and straightforward, but many people do not care about saving much for the future and end up borrowing money from everyone because there was no ‘’emergency’’ money, therefore, it is always best to have some financial stability.
Rule N2: if you are wondering how to allocate your funds in a right way and create that balance between your needs, goals and wants, remember the 50/30/20 rule. Basically, this rule suggests that 50% of your income should be spent on necessities such as rent, bills, food and etc. We suggest you to save 20% of your money for emergencies, however the total percentage of the savings should be totally up to you and current situation. And the last 30% of your income should be spent for entertainment, dining, travelling or any other activity that will bring you many good emotions. You can even try this practise with the best 5 apps for budgeting that were mentioned in the previous blog post.
Rule N3: and the last important principle is the 6-month emergency fund rule. It means that if you are putting aside a certain amount of money to your savings account every month (refer to Rule N1), it should be equivalent to 6 months of your living expenses. This rule will be the hardest to follow, but will help you to stay focused on your goals and needs in unexpected situations. For example, if you decide to quit a job and find a new one, this fund will be your savior while looking for an interesting position and not worrying about your money situation.
Following rules can be complicated but you can always change them according to your needs and try if it suits you. However if following principles doesn’t work for you personally and you are running out of money, Creditstar can review your loan application fast and if approved you can repay the loan within a very flexible period.
Keep checking our blog for more financial tips and read weekly advice which will help you manage your financial status.