Three Golden Rules of Personal Finance

A 2017 research shows that only 33% of adults worldwide are financially literate.
People like having a lot of money, but many don’t like learning finance management.
Subjects in finance, such as investment, budgeting, and others, can be pretty boring.
However, understanding the basics of personal finance is one of the most important things you can do to live a secure, happy, and healthy life.
Financial planning helps determine your short and long-term financial goals.
Information on how you can manage your finances efficiently is easily accessible and widely available online nowadays.
But, it all narrows down to the three golden rules of personal finance that includes:

  • Don’t spend more than you earn.
  • Start Saving, little by little.
  • Grow your Money

Let’s have a look at them.

# Rule no. 1 – Don’t spend more than you earn

In other words, live within or below your means.
Know how much you earn and track your expenses. Learn to isolate your needs from your wants.
Having a budget and sticking to it saves you from overspending, debt, and other unexpected financial troubles.

# Rule no. 2 – Start Saving, little by little

Saving is one of the most important principles to teach yourself and your kids.
The sooner you start, the better your future will be.
While experts suggest starting savings from your early 20s, it’s even better to start in your teenage years.
It’s more of building a habit than it is about the amount.
A penny saved is a penny earned!

# Rule no. 3 – Grow your Money

When your savings start to build up, you should think of ways to grow your money.
The simplest way to grow your money is to invest it.
Think of long-term investments and consider the various risk levels and returns.
Talk to your financial adviser and decide on a plan that meets your financial needs and aligns with your goals.


These golden rules of personal finance are a few of the best things you can do for yourself.
It all depends on you and how you implement it.
Start preparing for the future today so that you can live a better tomorrow.



Jun Sing Tan

I help young adults and working professionals achieve their financial goals with a full suite of risk management and wealth accumulation solutions. I firmly believe that financial education should be easy and achievable for all. I am committed to service and hope to be your one stop financial solution.


Jun Sing Tan

November 23, 2020