10 Financial Rules to Live by and Ideas on How to Save Money

by MSE Staff | Published 22 Aug 2021 (Updated 2 Nov 2021)

Saving money is not always easy. But there are many ideas that can help you save more and have a better financial future. Learn about 10 financial rules to live by, ideas on how to save money, and ideas for making your savings grow faster in this Money Smart list!

Have a Plan for Your Money

What is your life plan? Do you know what you want to be doing 1 year from now? How about 5 years and even 10 years from now? You have expectations for your life, so it makes sense to have expectations for your money. This is because your money supports the things you expect to do and have in life. Do you plan on paying off your mortgage in 3 years? Your money supports your life goals. Do you plan on continuing your education next year? Your money supports your continued education. Do you plan to eat today? Your money supports your ability to live. Your ability to plan out your finances is integral to your life plan. Make your plans detailed. What do you want and where are you going?

Planning out your finances is not easy. It takes a lot of work, but it pays off in the end! If things change, make sure to update your plan accordingly. You can't go wrong with an updated financial plan that accurately reflects what's happening in life. Make adjustments as needed!

Pay yourself first

Where does your after-tax money go? Curtis Banks teaches the Money Smart Allocation system because it forces you to stop throwing your money out on expenses and start allocating your money on assets. It's so simple that most people will fight it at first. Limit expenses to 45% of your income and focus a minimum of 55% of your income on growing your net worth! When you put your income to work growing your net worth, you pay yourself first. Your future self will thank you for it!

Participate in Financial Education Programs

What are your ideas on how to save money? There's a chance that the ideas your co-workers have might not work for you. This is why participating in financial education programs can help with finding better ideas and strategies that suit your needs as an individual. It never hurts to learn more about money so find out what kind of financial classes or workshops may be available near you! Financial literacy, knowledge, and awareness are important skills when it comes to personal finances. You should always take advantage of any opportunity needed to improve yourself and understanding of finance. With increased knowledge comes responsibility for using this information accordingly - use these concepts wisely!

Curtis Banks teaches and mentors on how to save money, how to systematically manage your money to grow your net worth, and how to retire abundantly and stay retired in Money Smart Transformation. It's a three-step program that includes learning, implementation, and mentoring so that you can take control of your finances. If you'd like to learn more about the program schedule a discovery call with Curtis Banks today. https://www.scheduleyou.in/mVrdFy

Take Advantage of Coupons, Discounts, and Sales When Possible

It's always a good idea to use coupons, discounts, and deals when you can. Do your research before purchasing anything because often times the best deal is not what it seems! Don't pay full price - there are plenty of ways to save. Coupons, discount codes or offers for free shipping from favorite stores like amazon prime have saved me time and money in my life.

Create a Habit of Saving Your Money and Keeping It

You can automate your money into a savings account, but you have to learn to not spend it for unintended purposes. Make a habit of saving your money and keeping it. Don't spend it for things you didn't plan on because many times emergencies happen out of the blue! Create an emergency fund that grows - this will be important in case something unexpected comes up like car repair, doctor's appointment, or even just needing to replace lost items.

Automate Contributions to Your Retirement

Take the necessary steps to ensure that your quality of life is abundant when you retire. Direct a portion of your income today to secure your livelihood in retirement. You can automatically contribute to your retirement by setting up an automatic withdrawal from a checking or savings account. The best thing you can do for yourself is start saving. The early you start, the easier it will be for you!

Avoid living below your means

It’s important to keep your expenses down but there is a point where you can become too frugal. For example, sleeping on a friend's couch to avoid paying higher living expenses can be an extreme way to save money. However, it's not a long-term solution for saving money. Living below your means can create discomfort and friction in different areas of your life. It can even make relationships with others difficult. Make sure that you're living within your means and not below your means.

Avoid living above your means

Living comfortably is important but it should never cause cash flow problems. You should maintain a healthy cash flow each month. If you're cash flow is running in the negative, it means that you have more money going out than you have coming in. That's a sign that you are living above your means. Pay attention to your cash flow and make sure that you're living within your means.

Create an Emergency Fund That Grows

Make sure your emergency fund is keeping up with inflation. An emergency fund is a safety net for you, your family and your home. Create an emergency fund that grows so that it'll be there to help in case of emergencies like car repair or doctor's appointments. It's also important to make sure that your emergency fund matches with inflation. Living expenses were far less in the 1960s than they are today. The costs of goods have increased dramatically. Keeping up with inflation will ensure that the money stays valuable just in case you have to use this account when you need it.

Grow your net worth

Understanding how much wealth we're building each month and year is important when it comes to our financial well-being! You should take stock on what you are doing financially monthly, quarterly, and annually by reviewing the numbers and viewing where exactly your money goes - if it isn't going towards assets then adjustments need to happen. Increase understanding by tracking monthly expenses, income, savings goals, debt payoff progress, assets, liabilities, investments, and net worth.

The 10 financial rules to live by and the ideas on how to save money are not always easy, but they will help you have a better future. What do you need? I’m here for you with free resources like Curtis' Top 10 Money Smart Strategies that can make your savings grow faster. Let's work together towards a smarter financial future! Request a free copy of this list during a free wealth discovery session.