Essential Money Rules to Live by

In order to save money, you must create money rules that you must adhere to daily.  Only by following the rules will you begin to save money in the long run.  One of the main rules  is that you must purchase what you ‘need’ rather than what you want. Those who purchase what they want will soon find their money melting before their eyes. These are the ones that will find it particularly difficult to save money in the long-run. Why?  Because money to them becomes an enemy that they will simply fail to control.

No sooner they have money; it is gone, because their philosophy will always be to spend on what they want, rather then, on what they need.  By simply turning the words around will you begin to approach and think about your money in a completely different way. By spending on what you need, you will begin to see significant savings in the long run. 

Every cent/dollar you spend you should know where it has been spent. By keeping a tighter rein on your money you will begin to gain back control of your spending.  The word here is savings.  Look for savings at every opportunity, and if one looks close enough, there are savings to be had everywhere.  Even within your own home, you can save money. By getting rid of faulty electrical appliances this can see more money in your pocket.

This is because electrical appliances which are faulty can waste energy – and wasted energy adds up to money down the drain. Money that would be better off in your own pocket. The same can be said for dripping taps, which can see your water bills shoot up.  Make sure all dripping taps are repaired, because dripping waters is again, money wasted.

Make sure that all electrical appliances are switched off in rooms that are not being used. Use one television instead of two, the same goes for radios – why use two or more radios in rooms that are not being used? It just adds up to wasted electrical energy – which is wasted money.  Also savings can be had if you have good double glazing – which can retain heat and energy within your home – rather than energy [money] escaping.

It is all about changing your view on how you look at money and how you will now use it in the future.  By growing your own food you will save money in the long run. There is plenty of information on how to grow your own food in order to save on your grocery bills on the Internet, and within magazines. 

By purchasing a smaller car you will significantly cut down your car insurance and fuel bills, simply because it is a smaller car. Better still, by getting rid of your car altogether and purchasing a pushbike your savings will shoot up. With no car fuel to purchase, no car tax, road tax and motor insurance, then one can clearly see how you will end up with more more money in your pocket, then you would do if you had a car.

When it comes to purchasing brand names, then look for the products that do the same job, for half the price. In the vast majority of cases, people purchase products simply because of the ‘name’.  In other words, you are not only purchasing the product but the name of the product too.

Unless the company has a history of reliability, trustworthiness, and gives you value for money, then steer clear of such brand names which will see you waste money in the long run. Overall, it is basically common sense. There is no secret formula to saving money. It is simply a matter of knowing how to do it and training your brain into thinking about money – and approaching money –  in a completely different way. 

When it comes to credit and debit cards then there is a difference between the two. Using only a debit card, instead of a credit card, you will have complete control over your money.  This is because with debit cards, you control just how much credit limit you place on it. Therefore, you will always be in control of your own finances, without going into debt.

Credit cards are a danger because many people see them as ‘free money’. They simply do not realise that they will have a big bill to pay back at the end of the month. Not only that, but credit cards are also controlled  by the APR [Annual Percentage Rate] that is placed on the card by banks and loan companies

This rate can either go up or down, or it can be ‘fixed’ – which means it stays at the same percentage rate. The APR normally kicks in if you are late in paying your credit card bill. This means that you will not only have to pay your original bill but the APR on top of that too – even if you are a day late in paying. By paying your credit card early or on the day it is due, you will beat the APR – which means you will not have to pay the APR that is added onto your card for any late payments.

Late payment of your credit card can see your name blacklisted, which means it will it harder for you to apply for credit in the future. So, you will save money if you decide to apply for a debit card instead. If you cannot trust your spending with a credit card, but you cannot do without some form of card, then applying for a debit card is the best way to go.

With a debit card, you do not pay any APR, as there is none added. Furthermore, it is you who are in complete control of your debit card. This is because it is you who will decide the cash limit that you place upon your debit card. This is not like a credit card in which the cash limit is decided by your bank or loan company. With a debit card, you are in complete control over your finances – which means you cannot then fall into debt.

By taking control of your finances you will make your money work for you. You will gain a better understanding about how money works. It will also give you a better understanding about yourself, and how you think about your savings in the long run. By changing the way you think about your finances, you will change your whole attitude to how you view, save and spend your money in the long run.