[PF] Most Basic Rule to Personal Finance

Posted Under: Personal Finance

Spend less than what you make.

A very very simple way to explain this… If we compare two persons, one making $50,000 and spending $45,000 and the other making $100,000 and spending $105,000, who’s going to be better off and has more money?

Now to be able to do that, it means following one or many of the behaviors below:
- don’t spend more than your monthly salary
- tracking your finance (money in-flow an out-flow)
- have a monthly budget
- distinguish wants” and “needs”
- try not to “borrow” from credit cards
- pay off any “bad” debt at high interest rate

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