2. Invest 10% of your paycheck before anything else. Use a company 401(k) or automatic investment in an IRA to automatically invest 10% of what you make for your future. Retirement will be the biggest purchase you will ever make, make sure to prepare accordingly.
3. prepare for the worst. Don't skip insurance and make sure you have an emergency fund. You must have disability, life, car, health and home insurance. You need to keep at least 3 months of expenses in cash in a savings account as your emergency fund.
4. track your money. Use one of the millions of free money tracking apps to find out what you're spending money on. You'll find out really fast whether you're spending money on crap or on things you really value.
5. Be patient. Money grows on trees, but trees take a long time to grow. Just keep watering that little hole in the ground and you'll be fine one day.
6. Don't borrow money to buy anything that doesn't make you money. Don't buy a car by borrowing it, because the price of the car goes down. Do not buy clothes with a credit card, as the cost of clothing goes down. Unless you are buying real estate or a business, you probably shouldn't be borrowing money.
7. spend money Life is meant to be lived. Spend money on what you care about. Travel the world, buy a nice pair of shoes, and have a fancy dinner. Just be sure to pay cash.
8.Save like crazy—at least 15% of your gross salary. Save over 15% as your income grows.
9. Avoid debt like the plague. Aside from a fixed rate, 15-year mortgage costing no more than 25% of your take-home pay, adopt the following philosophy: If I can't pay cash for something, I can't afford it. . Accordingly, pay off your credit card in full each month—no amount of recurring-flight points, or cash back, is worth paying 18–20+% interest. If you cannot discipline yourself to do so, cancel your card, deduct it and use only debit card/cash.
10. Invest wisely in low cost, well diversified equity index mutual funds. You can learn all about doing this on Vanguard's website.
Understand the difference between needs and wants. Buy what you need, and only buy what you can afford.
Sincerely Gyani baba
