5 financial rules many people don't know

Spend more save more

Andrea Woroch, a budget and consumer finance expert in the US, says that buying cheap is a bad financial strategy because you will have to spend more to replace cheap, fragile items. Focus on quality and spend more money if the item is practical and long-lasting.

Woroch tries to save money by buying used from well-known brands. For big-ticket items, she recommends taking advantage of retail sales and buying at the end of the season to save money.

Don't be too tight on your budget and want to revolutionize your spending right away.

This expert recommends first making small changes to your spending and saving habits, then developing additional habits. Don't get too detailed in your journal, either.

It’s important to make room in your budget for expenses that are important to you. For example, if dinner with friends or business associates is a top priority, keep that in your budget. Look for other ways to cut back on spending, such as canceling unused subscriptions and unplugging appliances to reduce your energy bill.

Beware of auto-renewal payments

Anne Lester, author of Your Best Financial Life, says it's incredibly easy in our society to spend money without thinking about it. "Many services offer auto-renewal subscriptions, which may seem convenient at first, but the ease with which you can actually buy things can lead to mindless spending," she says.

Instead, Lester recommends slowing down to make spending a more conscious decision. Her trick is to always make a shopping list before you go to the store or shop online. And when you shop online, take a week to consider whether you really need the item.

It's a good idea to delete recurring subscriptions and cancel services you rarely or no longer use.

Automatic saving

While Lester says to cancel automatic subscriptions, he recommends automating your savings.

"You should automate your online savings, such as daily, weekly or monthly deposits, so you don't have to make a decision about it. Sometimes saving can make you waver on an item you want to own," she said.

Professor Michael Finke, American College of Financial Services, suggests setting up automatic transfers to your savings account. For example, if you receive your paycheck at the end of the month, you can set it up for the first of the following month.

Pay attention to even small purchases

Sara Rathner, personal finance expert at NerdWallet When you use a credit card, there are very small transactions that you do not pay attention to. If you ignore them, you may have to pay larger fees later.

Rathner recommends checking your credit card statement every month and if you see any strange charges, even if they're only a few dollars, report them to your credit card company immediately.

There is no one right formula for all.

Kara Stevens, founder of The Frugal Feminista and author of the book Heal your relationship with money says that personal finance should be based on your values ​​and life circumstances. When you understand that other people's priorities are different from your own, you'll be able to better define your personal financial goals.

Before creating a financial plan, Patrick Yono, founder and CEO of Sure Life Financial, recommends mapping out what's important to you: What kind of home do you want to live in? What kind of work-life balance do you like? What hobbies do you want to pursue? Once you have your end goal in mind, you can figure out how to save the money you need.

Stevens adds that we also need to be flexible and responsive to what's happening on a daily basis and in the wider world, and not feel constrained by our financial rules.

“There are a lot of general rules when it comes to money, but don’t feel pressured to follow all of them. The best thing you can build into your personal financial plan is the flexibility to make changes as needed,” says Stevens.