Most financial advice is actually quite simple. 

You wouldn’t know it given the sheer amount of information available. Articles about how to avoid estate taxes, which stocks to buy,  or how to set up your 18 sinking funds clog our news and social media feeds. And that doesn’t even include the stock picks from your co-workers or Uncle John telling you to put everything in crypto. 

It’s enough to make you want to pretend it’s not happening. So you go along with your life, saving some money here and there, constantly wondering if you’ll have enough for retirement or college or whatever it is you want out of life. 

It can be difficult to sort through the noise and figure out what you should pay attention to and what you should ignore. 

The truth is that most people just want to know if they’re basically doing the right thing.

That’s why I’ve put together this list of basic financial rules that can serve as a guide to your financial decision-making. 

When you’re struggling with what to do, focus on these basic money rules. Use them as a roadmap for building a solid financial foundation so that you can stop feeling paralyzed and have the confidence to take action toward achieving your financial goals. 

Simple Rules for Managing Your Money

Live with intention

1. Know what’s important to you and why. 

Spend Wisely

2. Spend less than you earn. 

3. Cut expenses as much as possible on things that aren’t important to you. Spend within your means on anything else. 

4. Buy a home as a home, not as an investment. Don’t buy a home you can’t afford. 

Reduce and Stay Out of Debt

5. Always pay your credit card in full each month. 

6. Pay down high-interest rate debt as fast as you can. 

Invest for the Future

7. Invest in low-cost index funds. Don’t try to time the market, invest in individual stocks, or let your emotions drive your decisions. 

8. Aim to save at least 15% of your income for retirement in tax-advantaged savings accounts. (If that’s too hard, start small and gradually increase each year). 

Protect Yourself and Your Resources

9. Keep an emergency fund of 6-12 months worth of basic living expenses. 

10. Get insurance (term life, auto, home/renters, health, and disability). 

11. Hire a fee-only financial planner to ensure they have your best interests at heart.

12. Make sure you have a will, power of attorney, health care proxy, living will, and updated beneficiary designations on all accounts. 

Communicate

13. Talk to your significant other about money regularly, including before you get married. 

Help Others 

14. Be aware that there are many factors that affect wealth that are beyond an individual’s control. Stop judging people and do what you can to support policies and programs that give everyone a fair shot at a good life.

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