Sticking with the plan wins the day

Man writing in book-916Controlling spending, investing wisely and thinking about your financial future are not difficult if you develop a plan and follow it. These Ten Commandments of Personal Finance provide simple, common-sense guidelines about how to handle income, save and lead a happier, healthier, less stressful financial life.

Plan and then act - Planning involves setting financial goals and then creating a budget that will let you reach those goals over time. Acting involves nothing more complicated than following that budget.

Save and invest wisely “Pay yourself first” to make sure money is set aside for emergencies and unexpected expenses, and learn the value of compound interest.

Don’t overspend - This sounds simple enough – don’t spend more than you earn. The problem is most people have to borrow from time to time – buying a house is one good example – so know when to spend.

Pay bills on time - If you buy something or purchase a service that requires payments, make those payments on time – always. Not doing so is the quickest way to ruin your credit rating.

Limit debt - The best way to limit debt is not have any. Use a debit card rather than a credit card, pay off credit card balances and only take out loans when you are unable to save the money up front.

Teach your children about money - Take time to teach your children about the value of money and how to save, invest and spend wisely.

Buy insurance - Insurance is a hedge against financial catastrophe. You cannot afford to gamble on a major financial loss that could bankrupt you and cause economic ruin.

Plan for retirement - Learn about retirement saving and investment options, and take time to determine just how much money you will need in retirement.

Have a Will - To protect the assets in your estate and ensure that your wishes are followed when you die, making a will is important.

Donate – this is about the goodwill you create and the charitable works you support in your community not all donations are financial. You can also donate your time, energy and skill.