9 Money Rules to Follow If You Want Financial Independence

1. Pay Yourself First

Before you start pulling money out of your most recent paycheck, make sure you're just taking out what you need to cover yourself.

2. Keep A 6-Month Emergency Fund

Having a 6-month emergency fund ensures that you are constantly covered, even if you lose your work for a short period of time. 

3. Budget Using The 50/30/20 Rule

The 50/30/20 guideline states that you should spend 50% of your income on necessities, 30% on wants, and 20% on savings and investing.

4. Divide Your Bonus Into Thirds

Bonuses are fantastic, but because this is money you weren't aware of, you have a real chance to put it to good use.

5. Put A Large Percentage of Your Raises Into Saving & Investing

Getting a promotion can be similar to receiving a bonus. This is money you didn't expect to find.

6. Avoid High-Interest Debt

Debt is crippling. All of the good things that are happening to you financially can be wiped out by high-interest debt. 

7. Always Take Advantage Of An Employer 401K Match

Allow your company to assist you in saving for retirement. Matching 401k plans should be taken advantage of whenever possible.

8. When Buying A Car, Use The 20/4/10 Rule If You Have To

Automobiles are becoming more expensive, and having these principles in place can assist you in making sound financial decisions. 

9. The Stock Market Has A Long-Term Average Return of 10%

Although the stock market fluctuates, long-term return rates are relatively high. Be cautious about where you put your money.