Here are 10 personal finance rules that you likely didn’t learn in school.

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Rule No. 1: Create an emergency fund

This will help you in covering unexpected/unplanned expenses, such as medical emergencies or job loss, without going into debt. 

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Rule No. 2: Track spending

You can make a monthly budget and track the same to check where your money is going. This will help you in identifying avoidable expenses. 

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Rule No. 3: Start investing early

To give more time to your investments to grow, you should start investing earlier. 

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Rule No. 4: Understand power of compounding

If you’re saving, it will work for you and can help your money grow over time. 

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Rule No. 5: No credit card debt

Never opt for the minimum payment option in credit cards, you end up paying more in interest and fees.

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Rule No. 6: Avoid lifestyle inflation

You can automate your savings and investment contributions using standing instructions facility.  

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Rule No. 7: Build good credit score

Make sure you’re paying your EMI’s on time and keep your credit utilisation low.

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Rule No. 8: Plan for retirement

It’s recommended to start planning for retirement early, preferably when you start working in your 20’s.

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Rule No. 9: Adequate insurance cover

Adequate insurance cover is an essential part of personal finance. It is recommended to have the right coverage as per your needs.

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Rule No. 10: Learn negotiation skill

Negotiation skills are helpful while you are negotiating a salary with an employer, the price of a high-value item or interest rates on loans.

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