I’m overwhelmed. Where can I start?

Everywhere you look people have loads of financial advice that can quickly become overwhelming. We think it’s best to keep it simple and focus on getting the basics down first. An article published on Yahoo Finance lays out four pretty good rules of thumb as a starting point.

(1) It’s almost always best to avoid credit card debt. Using credit cards responsibly (paying them off in full every month) is a good way to build credit, but carrying a balance is just making your purchases more expensive over time.

(2) Put 10% of what you earn towards retirement. This one is a little harder and depends on your circumstances, but it’s a good idea to put something towards retirement and try to work towards 10% over time.

(3) Establish an emergency fund. Start small (like with our $500 goal!) and work towards 6 months of necessary expenses for a real sense of confidence that you can handle an emergency.

(4) Live below your means. Another rule we’ve turned into a goal for you (see “Spend Less Than You Earn” on your Goals page). Build the habit of spending less than you bring home. Just because you can afford it doesn’t mean you should.

Do you have any financial rules you live by? Let us know at ask@brightdime.com!

source: https://finance.yahoo.com/news/4-personal-finance-rules-know-115300602.html