Money Rules I Swear By

Money Rules I Swear By Save and Share the Knowledge! 6 things I wish I knew at 21 instead of 31 Emergency Fund I work in tech and have survived 3 layoffs in my 8 year career.....having an emergency fund isn't optional for me, it's a necessity. I currently have 6 months of bare bone expenses saved, and we're building it to 9 months as we prepare to grow our family. Peace of mind is part of the plan too! Pro tip: Keep your emergency fund in a High Yield Savings Account (HYSA) so it's earning interest while it sits there. Your money should always be working for you! Never Use a Debit Card I made the conscious decision to stop using my debit card for everyday purchases after learning about the risks. Now I put all my living expenses (except mortgage) on a credit card to get rewards points and fraud protection. If something goes wrong, it's the bank's money on the line not mine. I just pay it off every month! Pro tip: Find a no annual fee card that rewards your biggest spending category (groceries, gas, dining or travel) Check the link in my bio for my favorites! Housing Under 25% From the very beginning I made a rule that housing costs stay under 25% of my net monthly income. I set this boundary intentionally before I ever signed a lease, and it's one of the reasons I've been able to save aggressively in other areas of my life. Protecting this number gives you breathing room to actually build wealth. Snowball Method I had $15k in cc debt right out of college and was getting nowhere using the avalanche method. The moment I switched to the snowball method, everything changed and I paid it all off in 6 months! Seeing those balances hit zero one by one gave me the momentum to keep going. Sometimes the math isn't the most important thing...your motivation is! Automatic Savings For 2 years I had $750 automatically routed to a HYSA straight from my direct deposit before it ever touched my checking account. I never saw it, so I never spent it. That's how I saved my entire house down payment. Set it, forget it, and watch it grow. Sinking Funds I currently have 15 sinking funds! Everything from car insurance and home maintenance to travel, backpacking, and even camping trips. When an expected expense shows up, the money is already there. No panic, no debt, no dipping into savings. This is one of the biggest reasons my budget actually works! Pro tip: Start with just 3-4 funds for your most predictable expenses - car maintenance, medical and gifts are great starting points. You can always add more as you get comfortable!