Pearls Of Prudence

 BY KAMYA JAIN

This Is one among the best personal finance rules to follow; however, it Is often one among the most challenging. It’s incredibly easy in an exceedingly consumer-driven society To spend beyond your means; an honest rule of thumb is to save a minimum of 15% of your income. If you Think it is easy to overspend, try paying for things like clothes and groceries with cash rather than a credit card. Withdrawing a set amount monthly helps you be more aware and make better spending choices. If you can't commit to saving 15% of your income to start, decide how much you can save. You can Do an automatic transfer for those savings to maneuver money out of your bank account , thus eliminating the temptation to spend it.

Have your savings contributions automatically deducted from your paycheck via the 401k plan and/or direct deposit into an account . If you set money aside before you even see it, you'll tend to not miss it. If you get a raise at work annually , consider increasing your 401k contributions automatically also . Some plans allow you to incrementally raise your contribution rate annually so you'll accelerate the quantity you're socking away for retirement on a tax-advantaged basis.