Money Rules of Thumb

**krantcents** · 07-31-2011, 07:39 PM

Make savings a priority and live on what is left.

**maat55** · 07-31-2011, 08:09 PM

Never carry a balance on credit cards.
Never consider a credit card an emergency fund.
Never borrow for consumption or for things that go down in value.

**SmartMoneyGuy** · 08-01-2011, 05:56 AM

5% of the paycheck go straight into the savings account...

**creditcardfree** · 08-01-2011, 06:00 AM

Save 15% of gross income for retirement.

**disneysteve** · 08-01-2011, 06:54 AM

Save 20% of gross income - 15% to retirement; 5% to other needs. Live on what's left.

Pay cash for cars or at the very least, take a loan for no more than 3 years with a payment of no more than 10% of your monthly take home pay.

Pay no more than 3 times your annual income for your home. Your monthly payment (PITI) should not exceed 28% of your monthly income.

Never buy anything but term life insurance. Own your own policy. Getting one through work is okay but you lose it if you change jobs so always carry your own policy.

Never use a credit card to make a purchase unless you already have the money in your account to cover that purchase. Never carry a balance - always pay the bill in full each and every month.

**bjl584** · 08-01-2011, 09:13 AM

Save at least 20% of my income for retirement.

Keep cash on hand for major purchases like automobiles.

Never carry a credit card balance.

**MonkeyMama** · 08-01-2011, 09:40 AM

**Don't borrow for anything (but mortgage).

**10% gross income to retirement, at minimum. ALWAYS. (There is no maximum).

**If married/both working - only live on one income.

**Avoid contracts, loans and commitments - particularly for luxuries.

**Frugal** · 08-01-2011, 09:44 AM

1. Buy what you need BEFORE what you merely wish to have.
2. Save at least 20% of what you make.
3. Use coupons and savings strategies to save money.

**GREENBACK** · 08-01-2011, 02:26 PM

Saving is just like earning but easier.

**snafu** · 08-01-2011, 05:56 PM

My favorites have been mentioned, I often ask how many hours do I need to work to pay for a desired item...is it worth it? Is it a *need* or a *want*? Have I done research to verify value for money?

**nick__45** · 08-03-2011, 04:36 PM

1) Save at least 10% of take home and aim for 25%

2) Don't lend money to relatives. Give it to them if you can but don't expect it back.

3) Help friends financially if it means to make them richer via a business start-up/expansion or be in better positions such as getting a nice house at a good value. These people will always pay back.

4) Never bail out a friend financially because they can't pay their bills. These people usually don't like paying back.

5) Never let a friend move in unless you're renting them a space. If they are in a desperate situation, you can always get them nice motel somewhere cheap and they should be able to figure their next move in a week or so. This is why choosing friends is important and I don't have any friend that would be in this mess unless something very severe happened and they usually can get themselves out of a mess before needing my help.

6) Always keep a car as long as possible if buy new.

7) Never buy a boat unless docking is cheap or free and there are more than 5 people in the household that enjoy boats.

**rob62521** · 08-04-2011, 04:50 PM

Live below my means.

Appreciate what I have.

**scotland** · 08-05-2011, 02:57 AM

Dont tell the taxman everything.
Be inventive.
Be smarter than the opposition.

**photo** · 08-07-2011, 09:16 PM

I pretend I'm poor and have no money. It's a great feeling knowing I could buy almost anything I want -- but don't.

I'm human and do have my minor splurges. However, I've been 100% debt-free (mortgage all paid off) for about 12 years and actually enjoy the challenge of figuring out how to get the best prices and making my money stretch a little farther.

Money Rules of Thumb