Thank you for stopping by, today I will be highlighting the 10 fundamental Rules of Money Management Couples should adapt in 2020 in case they want to increase their Net worth. If you haven’t checked my previous article, remember to click the link at the bottom of this article to catch up and know how you can make your relationship better or attain financial freedom with your partner.
Back to the topic, spending is fun but at the end of the month when done unnecessarily it brings bills and headaches to couples. Higher earnings won’t solve your problems unless you learn how to manage what you earn at the moment.
Unfortunately, schools focus on teaching subjects and forget the fundamentals of money management, a skill that everyone needs in their life after education in order to unlock financial freedom. But how do I learn about money management? To find out how you can unlock your financial independence continue reading this post and remember to start practicing these rules the moment you finish reading
11 Rules of Money Management Couples should adapt in 2020
What are your basic needs and what are your luxuries? You might want a new tech gadget and at the same time need food. Your income might be enough to buy both but this doesn’t mean you should…Learn to evaluate the intensity of your needs and settle the priorities and save or invest so that your investment can buy you the goodies later on rather than spending your entire salary on purchases.
Live on less
Live below your income is the greatest strategy you can use to increase your net worth since it increases your savings or extra cash you can use on investments.
Literally this means having a place you can lay your head when the need arises since it is a guarantee of a backup plan. Keeping a cushion refers to building up an emergency plan that can be used to handle unexpected bills.
Therefore, every time you get extra cash think of putting some in your emergency fund account.
Make a budget= Money Management
Making a budget entails planning on how you will use your income. List all your expenses and allocate a certain percentage to cover the costs.
Save and Invest= Money Management
Make saving a monthly routine, start saving for your future investment since a 9-4 job is not enough to make you financially independent
In cases where the expenses are more than the income, cut some to accommodate your goals. Always try to find an alternative to what you need which might go at a cheaper price yet serve the same function.
Avoid Debt Troubles= Money Management
Almost everyone has a particular debt or his/her business runs on credit. In this case, don’t make it a nightmare but learn how to use it to your advantage. Use the money for investment and while applying for such loans look at their interest rates to make sure it won’t be a burden to you during the repayment period.
Set and Achieve Goal
Relationships are meant for companionship, it is therefore appropriate to set goals both short term and long term with your partner then put a plan to execute them. For example, saving together for the purpose of buying your own house, etc.
Give and Enjoy
When too much is given then too much is expected, when you finally make a fortune, it is your responsibility to give back to the community. There is no rule about this but that is how money works generally, you give to get more and this can be through investing in your community or giving out to charity organizations.
Don’t commit to any new recurring bills
Financial freedom comes with a lot of sacrifices based on the fact that we have unlimited wants that needs to be satisfied. However, this does not mean you should commit to any if you are not stable. Before getting yourself to a new bill try evaluating your financial power.
Give yourself a limit for unbudgeted expenditure
A critical part of your budget is the money left after you have subtracted all your expenses costs. If you a have a good amount left you can use for recreational purposes but only up to a certain amount.
Conclusion about Money Management
Money management should be a habit. It is not something you do once and expect lifetime results. Create your plan to execute all the rules on your own since this is something I cannot do for you but I can guide you through it. For more guidance subscribe to my Youtube channel for an update of my tutorials coming soon. VIP treatment to all my subscribers.
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