“Basic Direction for Personal Finance” Covers Most of the Financial Advice at Once.
The specifics of managing your finances can be challenging, but the fundamentals of good financial health are simple. Above all, channel your future money towards saving, not spending.
The Personal Finance website Wallet Hacks calls this “The Ultimate Personal Finance Guideline” because you can learn a lot from Star Trek . In more detail on the site, the main directive is explained as follows:
Avoid setting aside future funds for spending commitments; oblige them to savings obligations.
This simple principle drives many financial tips in one standard guide. Credit cards, for example, force you to channel future paychecks towards expenses you’ve already made. Contributing to your 401 (k) puts your future salaries into savings. The more you stick to this rule, the better your financial life will be.
Of course, as in Star Trek, the main directive can be changed. For example, buying a home spends most of your future money on buying something rather than saving money in a savings account, but you also get something worthwhile for it. If you keep the exceptions in the main directive for the really important things, you will still come ahead.
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