Free Sample Article

______________________________________________________
There’s no end to sound financial advice: “Mind the pennies, the pounds will take care of themselves,” or “a penny saved is a penny earned.” Words of wisdom, no argument. But, the reality is that sometimes you may have unforeseen needs or fall victim to material wants. You’re only human, after all.

Yet, money experts can make you feel like a failure or financial nitwit if you ignore their prudent advice. But, quiet as it’s kept, there are times when it’s OK to break a few money rules — and you won’t go belly-up in the process. Here are three money rules you can break without going broke.

1. Have your latte.
Financial author, David Bach’s “latte factor” is ingrained in the minds of millions of people around the globe. Basically, it refers to spending money on small purchases that can add up to big expenses over the long run. Bach explains that the latte is a metaphor for any particular indulgence you have — whether that’s coffee or video games. And, he recommends cutting out those “lattes.”

Few of us are fans of the all or nothing approach. Instead of depriving yourself completely of your preferred pleasures, look for other areas where you can save. For instance, don’t rent videos; get free ones from the library. Walk as much as possible instead of driving. Install those energy efficient light bulbs, use coupons when shopping, and so on.

Focus on saving money on products or services that aren’t as important to you so you can still indulge in your little pleasures.

2. Don’t max out your retirement contributions.
If you have a family and you are under 35, or if you are continuing your education so that you can get a higher-paying job, it’s OK to contribute only what you can. The reality is that having a young family requires liquidity — cash you can access quickly for expenses such as groceries, clothing, school fees, gas, college funds, and medications.

You can still begin to max out your retirement contributions in your 30s. It’s likely you will be making more money then anyway so you will have more to contribute. Similarly, improving your education in your 20s — instead of worrying about maximum retirement contributions — can increase your earnings in your 30s. This will allow you to contribute more.

Furthermore, experts predict that in the future people will be working beyond age 65, which means there will be more time to save and for compound interest to work its magic.

3. Blow your tax refund.
Using a tax refund to pay down debt or contribute to a retirement plan is the common wisdom. However, if you’re not currently carrying unmanageable debt, and are making regular retirement contributions, your finances won’t fall apart if you blow your refund under a few circumstances.

For instance, you could use your refund to buy items that will increase in value, such as jewelry or a collector’s item such as a baseball card. Or, you could purchase an item that’s available for a limited time, for instance at an auction or estate sale.

The bottom line is breaking sound financial rules should never be a habit. But, if you’re going to be a financial rebel, it pays to know how and when to break the rules without doing too much damage to your finances or your future.

Source: Core Content Media
Type: Original article
Word count: 567

Like this article? Get Similar Articles for Your Publishing Needs

Core Content Media can create similar articles for your website, blog, newsletter, or article marketing purposes. Simply fill out our Contact form describing your project needs, and we’ll get back to you within 24 hours.