The term “personal finance” refers to how you manage your money and plan for your future. All of your financial decisions and activities have an effect on your financial health. We are often guided by specific rules of thumb, such as “don’t buy a house that costs more than two-and-a-half years’ worth of income” or “you should always save at least 10% of your income toward retirement.”
While many of these adages are time tested and helpful, it’s important to consider what we should be doing—in general—to help improve our financial health and habits. Here we discuss four broad personal finance rules that can help get you on track to achieving specific financial goals.