Save More, Spend Less: 5 Simple Rules in Managing Your Personal Finance

Managing your personal finances is not a simple task. In fact, all your financial decisions and how you spend your money have a significant effect on your financial health today and in the future. 

Aside from that, personal finance is also highly emotional. You will feel overwhelmed and confused by how you will use your money and what you need to do with your finances to become successful — but it doesn’t have to be so complicated. 

Thus, following simple rules in managing your personal finances will help you feel more in control of your money. That said, here are some of these rules. 

Organize Your Finances

Keeping your finances organized is the number one rule in managing your personal finances. You need to know how much money is coming into your account and how much is going out. With this, you’ll have a clear idea of how much you are spending and where your money is going. 

That said, here are some tips on how to organize your personal finances.  

  • Create an organized filing system. 
  • Clean up your credit and bank accounts. Don’t let inactive accounts stay open.
  • Keep only the bank accounts that you actively use. 
  • Establish a budget and take control of your spending. 
  • Mark your payment dues — particularly your bills — in your daily planner. 
  • Set up automated payments for your scheduled bills to avoid late payments. 
  • When using technology to organize your finances, make sure to keep the list of your usernames and passwords in a safe place. 

Create an Emergency Fund

When it comes to priorities, you should save money for your emergency fund before spending. Thus, instead of hoping you’ll have remaining cash to stash when done buying your needs and wants, you should prioritize your emergency fund when creating your budget.

In today’s time, you should at least save money for emergency funds until it may cover at least six months’ worth of your living expenses or more. Since this fund is intended for unexpected costs such as car repairs, hospital bills, medications, or injuries that may prevent you from working, you need a significant amount of money to take care of these emergency expenses. 

 To make it easier for you, you can set up an automatic bank transfer after every paycheck so that the allocated money for your emergency fund will go directly to the intended savings account. 

Pay Off Your Bills Every Month

If you don’t want to face another debt, you should pay off your bills each month. Failure to pay for your utility bills and other monthly payments — even for a month — will create chaos on your monthly budget. However, if you practice good spendings, saving habits, and most importantly, paying off your bills on time will make you feel less stressed when it comes to your finances.

Moreover, to help you get reminded of your monthly bills, you can set up a digital reminder for the date when you need to pay for your electricity, credit cards, and other utility bills. Through this, you will never forget to pay your monthly dues despite your busy schedule.  

Spend Less Than What You Actually Earn

Spending less than what you can actually make is the most common rule of thumb that anyone should follow to maintain stable financial health. Thus, if you don’t want to struggle and to get more debts in the future, you should avoid spending more than you earn and start saving as early as possible. 

To make sure that you won’t spend more than your salary, you should know how much money will come into your account every month and control how much goes out. In most cases, following this rule is a great step towards a better financial condition, and maybe your first move to building wealth. 

Save and Invest For Your Future

If you want to achieve financial success in the future, you should start saving as soon as you can and engage your money in an investment. While there are different ways on how you should invest your money, it is a wise idea to start saving and investing for your retirement. You should keep in mind that the earlier you start saving for your future, the less money you need to save each month. 

Also, as much as possible, don’t use your savings account for unplanned expenses. Instead, you can apply for personal loans in online lenders such as Credit Ninja to cover your unexpected costs. By doing so, you won’t mess up your budget and financial plan. 


Following the simple rules in managing your personal finance is an excellent tool for reaching financial success. That said, you should always include emergency funds and savings to your priorities aside from monthly expenses, utility bills, and debts payment. Hence, it is essential to consider the future and build practices that may help you make better financial decisions that may lead to better financial health. 

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