An often quoted saying about change is:
The more things change; the more they stay the same
That adage also especially applies to your personal finance. The foundational principles of personal finance has (and will always) work for anyone. You do not want to be creative with your personal finance when it comes to certain principles. Instead, you want to duplicate those success principles so that you will gain the same success others have attained before you.
Why would you want to innovate or change success? Consistency and persistency are admirable traits common to those who have attained a higher level of success.
Here are some success principles on personal finance that does not require complicated calculations or sophisticated degrees or knowledge. It requires common sense. By the way, common sense is an oxymoron these days since it is neither common nor does it make sense (or cents).
* You want to avoid credit cards or any other debt as much as possible. The borrower is always (and will always be) enslaved to the lender.
* You should never borrow from anyone especially relatives because it will change your relation to them from being a son or a brother (or a daughter or a sister) into a debtor and they will be your lender.
* You want to simplify your life by eliminating all debts.
* It is better to not owe any money than to have a zero percent loan or credit card.
* Get rid of the “stuff” fever. Stuff will accumulate and will go down in value as soon as you get that stuff.
* Never (ever) have any car payments. This includes leasing or fleecing. It is better to own a car and pay for the insurance and gas and maintenance.
* Practice the lost art of delayed gratification. Buy from a written list (e.g. grocery list, etc.) rather than your emotional impulse.
* Learn and practice to save at least 15% to 20% of your gross income by paying yourself first (before the mortgage, bills, etc.)
* The best things in life are free. Parks, walks, playgrounds, etc. are free and even more healthy than computers, video games, or movies.
* Cash is king. Credit will make you a pauper.
* Your best wealth building tool is your job or business income.
* You have to allocate your money very specifically or it will go away very generally.
* You should have at least a 24 or 48 hour moratorium on any purchase over $100. You want to let the emotions cool off before you buy.
* You should learn to give to charities. This will make you think of others rather than yourself. Giving is becoming a lost art.
* Spend all your money on paper (using a budget or expenditure plan) before you spend it.
* Never ever use credit cards again.
* Carry cash in your wallet. What is in your wallet? Cash.