1. Do not buy a new car. Once you drive a new car off your home, it begins to depreciate. That means, you begin to lose a lot. Smart people let others shoulder the depreciation. So instead of buying a new car, they prefer to purchase gently used cars.
2. When you can afford a new house, do not rent. Real estate is a growing industry. With inflation, the value of real estate appreciates proportionately. While you save on some living costs by renting a house, you are actually throwing your money away. The money you pay for the rent can be paid in mortgage instead and when your house appreciates in time, you can sell it and find another one.
3. Savings should be at 10% of your income. This is a rule that is always violated because many people find it difficult to do. However, it is the only way available for anyone to have financial flexibility in the future. People who save this much, have something for future investment, which almost guarantees financial independence.
4. Avoid using credit cards. Generally speaking, credit cards damage financial health. Even the ones who regularly pay their monthly bills have the tendency to overspend, especially when the urge to do so becomes uncontrollable.