2 May 2017

Managing Your Money is Easy!

I was looking back at the history of our family finances recently. At one stage in the 1980's when interest rates were 15% or more our mortgage payments took up 40% of our income.

And on another occasion the technology company I was working for told us not to come in the next day since they had run out of money and couldn't pay us!

But we coped by following four rules which are still valid for keeping anyone's finances on an even keel:

1. Spend less than your income
2. Keep a rainy day fund
3. Make regular savings for your future (especially a pension)
4. Insure against the things you can't afford to have happen

- if only that were taught in schools!

Once you have those habits you can start to improve your situation further by improving your savings, starting an investment, arranging things so that less tax is due, and so on.

The basics of managing money is easy!

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