8 Money Rules To Live By

Outlook Money

Pranjal Kamra, in a recent LinkedIn post, lists 8 easy money rules that everyone should know to prevent avoid significant financial errors. Here are 8 money rules to live by

1. SIPs are Good, Start early

Starting SIPs early allows your money to grow for a longer period. It provides time for compounding to act in your favour, accumulating wealth over the years.

2. Avoid Unnecessary Debt

Steer clear of personal loans and credit card bills unless extremely necessary. Student loans are fine, only if they assist you in creating a better profession.

3. Buy Basic Insurance

Take one term life insurance and one health policy. These will help your family and your wallet stay safe from emergencies.

4. Stay Away from Unregulated Entities

Stay clear from schemes, apps, or platforms that are not regulated. Even when returns look good, the risks lie hidden.

5. Don't Spend to Impress

Wasting money on appearances depletes your savings. Prioritise living within your means, not impressing others.

6. Avoid Trading and Speculation

Speculative trading for short-term profits is dangerous. Most people end up losing money that way. Long-term investment is safer and more stable.

7. Diversify Your Investments

Don't invest all your money in one instrument. Invest in gold ETFs, government programs, and mutual funds to diversify portfolio and mitigate risk.

8. Plan and Save for Retirement

Start creating a retirement fund during your 20s or 30s. The sooner you start, the better.

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