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Financing 101: Handling your money| IT GIRL DIARIES
A few financial tips my father shared with me that has kept me secure and taught me valuable lessons on saving and future planning..
When it comes to managing your money, always apply the 30:30:30:10 rule. This means allocating 30% towards your day-to-day or monthly expenses, 30% towards investments, 30% for future retirement savings, and 10% for your wants and luxuries.
I consider myself fortunate to live with my parents, which means I don’t have to cover utilities or household expenses. However, instead of spending all of my income on luxuries and my wants, I divide it thoughtfully. I allocate 15% more towards investments, ensuring that my money works for me and provides a return. The remaining 15% is set aside and added to my personal wants and luxuries.
Don't use the full amount for luxuries because you want to make sure that you are using the extra funds wisely. This way, you can contribute towards your future plans, even if while living with parents. It’s important to enjoy the present, but always be prepared for the future.
Never keep all your money in one bank account. There are several reasons for this. If you don’t see your money, you’re less likely to spend it, by keeping your investments and savings in a separate account that you rarely check, you’re less tempted to dip into them so keep them separate from your regular income in a different bank account.
Always put your savings and investments into a high yield savings account so that your money doesn't lose value due to inflation overtime and you profit through interest return.
If you notice your income increasing significantly, it might be wise to consult a financial advisor or get an accountant. A professional can provide valuable advice on how to save, invest, and manage your growing assets effectively.
ALWAYS use a separate bank account for online shopping. Opt for digital payment platforms like PayPal or Venmo. Even with reputable brands, it’s safer not to provide your primary bank details. I personally use a completely separate account for online shopping, only transferring money when needed, and it has kept me secure for a long time.
mwah! xoxo, colebabey8.88
www.thedigitaldollar/gumroad.com
ps: i might delete this some time because im really a gatekeeper when it comes to my parents advice since it's always so good ..