Ditch These 4 Old Money Rules And Solve Your Money Problems

Date:

spot_img
What’s your Reaction?
+1
0
+1
0
+1
0
+1
0
+1
0

There are many money rules and tips that financial experts recommended in the past that many have lived by. Although some of these rules have worked well in the past, many aren’t as effective as they used to be. So, it’s time to ditch them and adopt new strategies that fit today’s money problems. 

Here are some old-school money rules that, in this time and age can be bad for your financial well-being. 

Join our Spotcovery Global Black Community Facebook Group for early access to exclusive content and to share in a lively discussion.

Save 3 to 6 Months of Living Expenses in an Emergency Fund 

How Much Emergency Funds I Should Have? Video Credit: @TommyBryson

Saving enough to cover three to six months of living expenses in case of unforeseen circumstances is an important goal. However, it may not be enough. 

You have probably heard the scary stories of massive layoffs by companies these days, making it difficult to secure a new job. The process of securing a new job can take over six months. 

Frankly speaking, the crappy job market and the uncertain economy mean for most folks, three to six months of expense savings is an excellent place to start but not a smart place to stop. 

So, how many months of living expenses should you save? Eight to twelve months might be the smart place to stop. Check these books on Amazon to learn how to build an emergency fund. 

People Also Read: 5 Rules in Personal Finance African Americans Should Know

Don’t Use Credit Cards 

Why You Should Buy Everything With Credit Cards. Video Credit: @CNBC

Not using credit cards may help you track your spending easily or get out of debt. But it can also affect how lenders view your creditworthiness. 

A report from CNBC has it that lenders are slashing or closing lines of credit for borrowers with high FICO scores because of inactivity. Plus, credit scores have also changed. According to Time, credit scores of 750 that lenders used to consider high are now sometimes at the bottom of very good because of more strict lending practices these days.

The smart thing is to practice using your credit card more often and pay off the bill in full. Also, remember that using credit cards has many other benefits. You just need to learn how to use it properly without abusing it. Here are books on Amazon on how to profit from credit cards

Automate Expenses 

When did you last cancel subscriptions you don’t use, shop for cheaper home insurance or auto? Or review your monthly expenses to identify charges or fees that you can remove. 

The point is that you could be needlessly spending hundreds or thousands of dollars yearly when you put expenses on autopilot without knowing it. So, the new rule to adopt is to review your expenses quarterly to see where you are spending your money. 

During the review, put an E next to all your essential spending and a D to the discretionary ones. Then, examine those with a D to see if there are things you could remove. 

People Also Read: Read These 5 Best Personal Finance Books by Black Authors

Constantly Monitor Your Portfolio Value 

During a time of economic uncertainties, it’s normal to want to check to see how your investments are holding up. However the more frequently you check, the more you give room to counterproductive emotions. 

For example, excitement can make you get overconfident and take unwise risks. On the other hand, fear of losses can make you pull funds out of investment and miss out on future returns. 

The new approach is to keep in mind that short-term ups and downs are part of investment. With this in mind, you won’t be bothered about the short-term fall of your portfolio and you’ll also not be monitoring it daily.

Given all that has changed with the economy, many old money rules aren’t as effective as they used to be. The best way to stay on top of your finances is to improve your financial knowledge constantly. On Amazon, you’ll find many personal finance books that’ll help you learn new money rules. 

People Also Read: 5 Reasons You Should Think Twice Before Using Your Credit Card

Nearly 80% of consumers visit directories with reviews to find a local business. List your business for free in our exclusive Spotcovery Black-Owned Business Directory.

Spotcovery offers unique and fresh daily content on Black culture, lifestyle, and experiences. We talk about everything black, black people, black-owned and black-owned businesses. We also deliver authentic and relevant content that will inform, inspire and empower you! The future of black media is critical to today’s black experience! Our primary audience includes African Americans, Africans, Afro-Caribbean, and people of African heritage. Black culture is for the culture!

What’s your Reaction?
+1
0
+1
0
+1
0
+1
0
+1
0

As an Amazon Associate, Spotcovery earns from qualifying purchases. Spotcovery gets commissions for purchases made through links in this post.

spot_img
Uchenna Agwu
Uchenna Agwu
Hi there! I’m Uchenna Agwu, and I love to write. When I’m not writing, you can usually find me reading books or watching documentaries (I’m a bit of a nerd). But I also like to get out and explore – whether that means going on hikes or checking out new restaurants.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive Articles

Popular

More like this
Related

6 Best College Basketball Teams Your Child Could Need to Achieve Their Dream

The best college basketball teams have won multiple championships,...

7 Best Small Forwards of All Time

The best small forwards of all time are quick...

Recipe: The Authentic Aruba Funchi Dish You Should Taste

Funchi is a local cornmeal side dish for soup or sauce in Aruba, a small island in the Caribbean. All you need is maize flour, water, butter, and salt to taste. Funchi is served with fried fish and a sauce or local soup.

World Therapy Day: Join the Celebration Through 8 Activities

World Music Therapy Day is marked on the 1st...