We all need to set our own goals that guides our overall decisions in Personal Finances. Below are 10 Golden Rules for Personal Finances to live by which you can adopt and/or modify to make it your own. Your happiness & financial freedom is indeed in your own hands! :)


1. Set Your own personalised PF Goals

For example, your goal may be “To be able to retire maintaining a comfortable lifestyle while ensuring sufficient funds for my lifetime & the next generation.”

2. Review PF Monthly
Every month total income, spending, assets & liabilities to gauge my net worth.
If married, to review monthly together.
Review with PF advisor every 6 months (or at the very minimum annually).

3. Say No to Debt
Pay off all debt especially high interest debt.
If you are struggling with multiple debts, tackling the smallest may work best or rolling into a single debt.
Generally avoid easi-payment schemes, personal loans & debt.

4. Pay Yourself First
After paying off necessities, to save before spending money on things you don’t really need.

5. Fund Your Emergency Savings
The first thing to do after you pay yourself is to setup your 3-6months emergency savings fund.
If you do not have emergency savings, you are very likely to fall into debt when the unexpected expectedly occurs.

6. Invest Intelligently
Start setting up your own investments with your funds which you have know regularly set aside.
Select a balanced approach between putting all your eggs in one basket & over diversifying (Buffetology).
Don’t bet the farm. Keep your investments simple. Balance low-risk & high-risk investments.

7. Insure against Risk
Protect against loss especially on life, home & vehicles.
Know what you need & that you are sufficiently protected (not under-insured or over-insured).

8. Stay in a Right Size Home
Live in a place that meets your needs & is within your means.
Do not keep up with the Joneses & kill yourself with crippling mortgage payments (target <30% of your income).

9. Live Life with Love Not Loss
Spend sufficient time deliberating (or best discuss with your significant other) before making an investment decision or a large purchase.
Avoid rushed decisions or being pressured into making a decision.

10. Reward Yourself
When you reach each of your goals, reward yourself & celebrate the achievement! :D