It’s always important to be smart with your finances. There are things you can do that ensure that your money is safe and going where it should. Here are five good financial rules of thumb to follow.
Always save at least 10 percent of your income toward your retirement. This is a fairly easy goal to attain over the long term. It can also provide you with a nest egg for the future, once you are ready to retire. Start doing this when you’re young and still have a lot more years of work ahead of you.
Invest in bonds, which can really produce the bucks later down the line. Your portfolio will change as you age and you might want to take more risk in your investing.
It’s wise to always have an emergency fund on hand for hardships. You never know when misfortune can come, which means having extra money on hand is so important. Whether you lose your job, suffer an unexpected injury or illness or fall victim to identity theft, an emergency fund can be a lifesaver.
Pay off all your credit card debt. It will ensure that you can gradually improve your creditworthiness and avoid amassing a great deal of debt, something that can adversely affect you later on.
Buying life insurance for unexpected events is also wise. It helps to protect your spouse and children if something happens to you. You can also borrow on your life insurance to pay off important things like a child’s college tuition, if necessary.
These financial rules of thumb are essential for the long term of your money.