Skip to main content
  1. News
  2. Business & Finance
  3. Personal Finance

Five money principles to live by

See also

The following five money principles are the basics to everyday finances. Keep them in mind as you create short, medium and long term goals and objectives. Everyday money management decisions are simplified with a concrete money plan in place.

Income - Understand your pay. What do you make, how much goes to taxes and what are you bringing home to the bank each month. Make sure your W-4 is filled out to correlate with your tax withholding needs. Take advantage of any credits and deductions which can be set in place before taxes come out.

Save and Invest - It’s never too early to start saving even if it is a small amount each month. Don't’ put so much away that you strap yourself in the end. It is important to enjoy some of your money so don’t forget to pay yourself first. Going without will only make sticking to your plan that much more difficult. Monitor both long and short-term savings plans. If you are going to invest, a qualified professional would help you define key financial goals.

Protect your finances - It is important to take precautions in order to protect your monthly budget as well as future money needs. Build your own emergency account so you won’t have to rely on creditors or lenders to help solve money troubles. Keep all your financial records organized and watch for potential scams or fraudulent activity. Check your credit report every year to make sure your history reflects accurate information. Shop for the best and most affordable insurances to protect both your assets and health.

Spend wisely - Search for the best value. Shop around and compare prices especially with big ticket items. Track your spending habits and create a spending plan that fits into your budget. It is important to live within your means. Set spending limits and stick to them.

Borrow even wiser - Interest is the price you pay for borrowing money. It is important to shop around for the best lender. Whether you are going to a bank, applying for a new credit card or using an alternative money option like an online payday loan or car title loan, shopping for the best interest rate will save money in the end. Make on-time payments each month and pay more than the minimum amount due in order to decrease the interest charges each month.

Manage your debt efficiently in order to build your credit score. A credit score in the above prime rate will guarantee you lower interest rates for future funding needs and decrease your need for alternative money solutions. Reevaluate goals in order to maintain progress and adjust the plan as needed. Everyday finances matter in the long-term, so make your money count each day.

Advertisement

News

  • Ukraine
    Ukrainians have photo evidence that connect Russian soldiers to unrest in the country
    Video
    Watch Video
  • Drone strikes in Yemen
    An estimated 65 al-Qaeda militants were killed in drone strikes over the weekend
    World News
  • FBI investigates stowaway
    After a teen snuck into a plane's landing gear, the FBI will reevaluate airport security
    Headlines
  • American wins Boston Marathon
    Meb Keflezighi becomes the first American to win the Boston Marathon in decades
    Sports
  • Search for MH370
    As the search for MH370 in the ocean goes dim, crews may shift the search area yet again
    Headlines
  • Ferry disaster claims over 100 lives
    The death toll for the South Korean ferry disaster rises above 100
    Video
    Watch Video

User login

Log in
Sign in with your email and password. Or reset your password.
Write for us
Interested in becoming an Examiner and sharing your experience and passion? We're always looking for quality writers. Find out more about Examiner.com and apply today!