Introduction

Money can be one of the most stressful things in your life. It’s uncertain, volatile, and can make you anxious if you’re not careful with it. But by following these rules—which are based on some basic principles of personal finance—you’ll be able to reach financial freedom sooner than later. Here’s how:

1. Don’t wait for a windfall

Don’t wait for a windfall. Start saving as soon as you can, even if it’s just $5 per week. Even when money is tight, there are ways to save money and build up your savings account:

• Cut back on expenses by eating at home more often or packing lunch instead of buying it.
• Use coupons when shopping in stores, buying things online, or through mail-order catalogs (like [this one](https://www.amazon.com/gp/product/B076SJZP7V)) that offer discounts for using them (be sure not to order anything else).
• Cut out unnecessary subscriptions like magazines and cable TV channels that aren’t worth the cost–or cancel them altogether if they’re not essential enough!

2. Start saving as early as possible

As you can see, saving early is important because it’s the only way to ensure that you have enough money for retirement. However, saving for retirement doesn’t mean that you should stop saving altogether once your career is over.

If we’re honest with ourselves, we all know that there are times in life when we need some extra cash and don’t have any saved up or even anywhere near enough of it on hand. Whether that means paying off bills or covering unexpected expenses like car repairs or emergency trips to the hospital (which happen more often than most people realize), having some savings set aside means being able to weather these storms without worrying about how they will affect other aspects of our lives such as our credit score or ability to pay rent next month.

3. Get out of debt

• Get out of debt by paying off your credit card debt.

Paying off your credit card debt is one of the best things you can do for your finances, and it’s easier than ever before, thanks to low-interest rates and balance transfer offers. If you have any outstanding balances on your cards, pay them down as quickly as possible by focusing on paying off the highest-interest rate card first (the one with the highest APR). Once that’s paid off, move on to other cards until they’re all gone!

You might also consider using a tool like Lending Tree’s Credit Card Payoff Estimator or Bankrate’s Debt Calculator; these tools will show how much interest you’re paying each month so that you can see exactly how much money is being sunk into these debts–and help motivate yourself even more!

4. Make money work harder for you

• Invest in your future. The most important thing you can do for your financial health is to start saving and investing as early as possible. The value of a dollar today is greater than the value of a dollar tomorrow; therefore, if you invest $1,000 today and earn 10% interest per year on that investment, it will be worth $1,100 at the end of one year–a 10% return on investment! If you wait until retirement age (or later), then invest $1,000, then earn 10%, that same initial investment would only grow into about $900–a 9% return on investment.*
• Make sure there’s money left over after expenses are paid off so that investments can grow over time.*

5. Live below your means

The fifth rule is to live below your means. In other words, don’t spend more than you earn. It may sound like common sense, but if you’re not careful and discipline yourself well enough, this can be one of the hardest rules to follow because it requires sacrifice today for future benefits tomorrow (aka financial freedom).

That said, there are many ways we can cut back on unnecessary spending and save money:

• Track all of your expenses for a month or so using an app like Mint, or You Need A Budget (YNAB). Seeing where all of your money goes will help identify areas where savings can be made without too much pain or effort required on your part. For example, if coffee at Starbucks every morning adds up to $15 per week ($60 per month), consider making coffee at home instead–it’ll cost less than half as much! Or maybe buying lunch at work every day adds up to $20 per week ($80 per month)? If so then make sure that at least half of those lunches are homemade ones instead; then eat out only once every two weeks instead…and so forth until all unnecessary spending has been eliminated from your budget.* Cut back on other unnecessary purchases such as cable TV subscriptions (or cancel them altogether), monthly magazine subscriptions (or cancel them altogether), etc.* Set aside some cash each month specifically designated for paying down debt

6. Invest for growth and income in retirement accounts and beyond

As you approach retirement and beyond, you should consider investing for growth and income. This can be done through a variety of accounts, including:

• A Roth IRA (individual retirement account). These allow you to contribute funds with after-tax dollars, but withdrawals are tax-free when used for qualified expenses such as education or medical bills. You can also withdraw prior to age 59 1/2 without any penalty if you need the money because of an unexpected emergency situation like illness or job loss.
• A traditional IRA offers tax deductions on contributions–but they’re subject to taxation upon withdrawal at ordinary income rates (unless it’s rolled over into another qualified plan).
• A 401(k) allows workers in certain occupations with employers who sponsor these plans (e.g., teachers) to put aside up to $18,500 per year ($24K if age 50+) into their accounts; there may also be employer matching contributions available! Additionally: All employee contributions made before April 15th are deductible from federal taxes due that year (up until October 15th); employee contributions made between April 16th – December 31st will count toward next year’s maximum contribution amount; employers must make all participant loans within 60 days after receiving notice from employees requesting them.

7. Keep learning about financial planning, investing, and wealth management

• Keep learning about financial planning, investing, and wealth management.

Learning is the key to transforming your finances. Learning will help you make better decisions, avoid mistakes and take advantage of opportunities that are available to you. There’s no need to be an expert on all things money; just learn what you can so that when it comes time to make investments or buying insurance policies, etc., you’ll know how best to proceed.

Keep up with new developments in financial planning and investing by subscribing to newsletters or blogs from trusted sources like MoneySense Magazine (Canada) or Forbes Magazine (United States).

8. Give financially to causes that matter to you, but don’t count on it as an investment or source of return on your dollars

When you’re giving money to causes that matter to you, don’t count on it as an investment or source of return on your dollars.

Giving financially to causes that matter to you can be a great way to make a difference in the world and feel good about yourself while doing so–but do not expect this act of generosity will help achieve financial freedom or independence. If your goal is creating real wealth through investing, then consider donating only after all other expenses have been paid and any debt has been eliminated (see Rule 2).

9. Live by the 80-20 rule when it comes to spending, saving, and investing (which means keep the 20 percent of what you earn to yourself)

• Live by the 80-20 rule when it comes to spending, saving, and investing (which means keep the 20 percent of what you earn to yourself)
• The 80-20 rule is a very simple concept: 80% of your results come from 20% of your efforts. In other words, if you want to achieve financial freedom, then focus on your core priorities and let go of everything else that doesn’t move forward with those priorities.
• You should aim for this same principle when managing your finances as well — namely by keeping the 20% of what you earn with which to live comfortably (or even just above comfortably) while putting away 10% into savings each month in case something unexpected happens down the line (like losing your job). If possible, try increasing this percentage even further so that one day soon, enough money will be saved up for retirement or another goal like buying a house or car outright rather than financing them over time through monthly payments!

10. Assess your personal risk tolerance before making investments that promise high returns (but also higher risk)

It’s important to assess your personal risk tolerance before making investments that promise high returns but also carry a greater degree of risk. If you’re young and have time to recover from losses, then it’s worth considering a higher-risk investment strategy. However, if you’re older or have less time until retirement, then investing more conservatively may be the better option for you.

These ten tips can help you make smart money decisions that will change your life

• Don’t wait for a windfall.
• Start saving as early as possible.
• Get out of debt and stay out of debt!
• Make money work harder for you by investing in retirement accounts and beyond (like an IRA).

Conclusion

If you follow these 15 rules, you will become financially free and have the freedom to do what you want with your time. You’ll be able to travel, work less and spend more time with family or friends. And if that sounds like something worth striving for, then start following these tips today.