my top 10 rules will ensure you live a financially secure and independent life I spent 35 years in the banking Wealth Management and Insurance businesses and now teach personal #1a73e8; text-decoration: none;">Finance at a local University I know the tricks Banks use to convince you to choose one Financial product over another many times not in your best interest I have seen people earning $300,000 per year fall into finan fincial Despair and others earning
70,000 per year become financially secure with a well-funded retirement plan the amount you earn in a year has less to do with becoming financially secure than smart personal financial management these rules are easy to understand and follow so let’s get into it now the number one rule is to
create a budget and mainly update your spending at least once per month ideally twice per month each time you get paid use Excel a spreadsheet or pen and paper do not use an app or software that automates the population of your spending into your budget it is important for you to understand what
you were spending and where look at your bank and Credit card statements and update your budget continually if you do not know how much and where you spending your money the rest of your text-decoration: none;">Finances will fall apart follow the 5030 20 budget method I have another CashNews.co that explains the 503020 budget method if you are not familiar number two understand how your medical and dental Insurance plans work document your co-pays
deductibles and co- Insurance limits as well as your maximum annual out-of-pocket amount these numbers change each year so to be sure to update your notes annually medical Debt is the second highest reason people file for bankruptcy build your HSA balance up to
your annual out of-pocket maximum even if this will take you 3 to 5 years if you are not in a high deductible plan put 75% of your typical annual medical expenses into an FSA both of these plans an HSA and an FSA will lower your Taxes Taxes act as a cancer on your
Income number three spend 30% or less of your monthly net Income on housing the 30% is inclusive of any HOA property tax Taxes and Insurance if you are a renter I always recommend renters Insurance it’s not
very expensive and may save you from Financial ruin if you are spending more than 30% consider downsizing or getting a roommate or a border until your Income catches up for some of you 30% seems like an Out Of Reach goal even if it takes you several years to reduce the cost of rent
relative to your Income no other step will impact you more than this shop your homeowners Insurance every three years or whenever it is raised more than 4% the Insurance company or Insurance agent you think is loyal to you probably
is not they are loyal to their own bottom line number four manage your recurring utility cost through thoughtful conservation monthly electricity gas water sewer and even garbage collection combined are a large cost on your budget and can be lowered slightly with thought if your utility offers a
smart therat or or an energy conservation plan in exchange for a monthly discount take advantage of it it is better to be warmer or cold a few days of the year than to let these expenses impact your chances of financial success number five never pay a Credit card annual fee the
benefits you think your Credit card annual fee is affording you are rarely realized there are many no annual fee cashback cards paying 2% cash back or more on all your monthly spend with no categories or spend caps choose cash back over miles or points miles and points earn and
redeem formulas can change and often do number six Finance your vehicle with a 60-month or less auto Loan and never lease leasing will force you to pay monthly for your
vehicle indefinitely with an auto Loan you can make extra payments and eventually rid yourself of Interest costs and this High monthly expense put at least 10% cash down when you purchase a vehicle if you can’t afford to put at least 10% down choose a less expensive car or
wait until you have the saved the down payment amount a down payment will ensure if your car is tolded in an accident or stolen you will get enough money from the Insurance company to pay it off number seven never carry a balance on a Credit card and minimize your
Consumer Debt if you have Credit card Debt today make a plan to pay it off in the near future strive to pay off all your student Loans by the time you turn age 35 use cash to pay for cars after age 50 and stri to strive to have no
mortgage by age 65 you have three Savings goals and the order in which you fund them is important your first goal is to build a rainy day Savings balance save three to six months of your net Income one month for each month you expect it will take
you to find a new job but at least three months you may think getting laid off of your from your current company or your current company going out of business is not a possibility but it happens every day when we least expect it keep this money in a liquid bank or Brokerage account
if your bank is paying less than half of what you could earn in a Money Market mutual fund find a new bank never keep more than the value of two paychecks in your checking account if your bank is unwilling to invest in you with a competitive interest rate why invest in your bank
your second Savings plan is to create a plan to fund your retirement A good rule of thumb is to have one time your annual salary Sav by age 30 three times your annual salary Sav by age 40 six times your uh average Sal salary saved by age 50 and 10 times by your retirement date
always contribute to an employer sponsor 401k or 403b plan up to the maximum employee matching amount but never less than 5% of your gross salary increase your contribution amount by onethird of each raise you receive until the maximum allowed by the IRS is reached if you get a 3% raise increase
your contribution amount by 1% a 6% raise then 2% and so on number 10 and the final personal Finance rule fund your children’s College Savings using a
529 plan or help your retired parents financially but only after your first two Savings goals are met or on track we all love our children and parents but if they won’t pay for our retirements who will Dave the personal style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance
CashNews, your go-to portal for financial news and insights.