6 Financial Rules That Can Save You Money

Save You Money - Complete Controller

There are so many rules in life we have to follow, but there should especially be rules for personal finances. When it comes to financial health, every fiscally accountable individual should follow dos and don’ts. Here are six excellent financial rules that, if followed, can save you money.


No Credit Cards

Saying no to credit cards is a financial rule that every individual should follow. I know some would say that they are great for difficulties, but a safer idea would be to use the money you save on credit card high-interest costs to start an emergency savings account, one that increases your interest. Credit card debts are a billion-dollar business and primarily from the interest people pay, not the principle. Even if you have a great credit score, say no to a credit card and keep it that way.


Buy an Inexpensive Car

While many cars are a status indicator, paying a lot for prestige is not a good financial rule. A good financial rule when it comes to buying a car is the final cost should be less than half of your annual salary. If you can’t pay for a vehicle in cash, buy from a car dealership where you get a reasonable interest rate and inexpensive car payment not to exceed a quarter of your monthly income. When negotiating, make the sales individual gives you the final cost of the car in total with and without interest, don’t allow them only to give you the monthly payment total. This way of offering the cost of the vehicle hides high-interest rates or vehicle prices. Always buy used if you can. You can generally get a great car for a fraction of the cost when buying a used one.


Shop Around for Insurance

The financial rule on insurance is only to buy what you require. Insurance is something you pay into in case you need it, so you need to buy intelligently. Some insurance is required by law in certain states. Therefore, get the greatest coverage but look around for the least expensive prices. It could make hundreds of dollars of difference in your overall costs. Health insurance, homeowners, renters, and life insurance are other expenses.


The 10/10/80 Rule

Savings must be the priority of every financially sensible individual. There is a rule that says you should save 10%, give 10%, and spend 80% as a straightforward means of allotting your income. While this is an excellent financial rule, this should be a beginning point towards savings and donating. The most crucial thing is that you save, give, and carefully spend. You can alter the allotment calculations to fit your goals and lifestyle. But one financial rule that occurs from the 10/10/80 process is that savings are first, not last. Warren Buffet clarified that you should save first before you spend, not the other way around.


The 50/30/20 Rule

50/30/20 is another money allocation financial rule. This financial rule also has savings built-in but happens after the debt is paid off. This rule is 50% of your income for necessities and bills, 30% towards financial objectives such as paying debt and savings, and 20% to wants, which is anything you desire to buy that isn’t in the other two categories. This financial rule can be adjusted according to your lifestyle, but it does not prioritize savings like the 10/10/80 financial rule.


Make a 20% Down Payment

The 20% down payment rule applies to anything you will buy on credit. It is the idea that you should have 20% of the total cost saved before the purchase. This rule is generally for those purchasing a home, getting a loan for various reasons, or buying a vehicle. The idea is that paying 20% of the total upfront will lower interest and payments, adding considerable savings when the final payment is made. This rule can be applied to anything you buy on credit, even if the place of purchase doesn’t accept a down payment. If you can pay down 20% of your first payment’s total cost, this will bring you to your payoff date sooner and save you money on interest.



Financial health and freedom should be every financially responsible individual’s goal. While there are many things you can do to contribute to your financial health and freedom, using one or more of these rules of thumb will ensure you reach this goal.