• About
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives
  • Disclaimer

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

bullion star banner

8 Finance Rules To Live By In the New Year

By Sabado Domingo

We’re about to ring in a new year; that means it’s time to clean the slate, get rid of old baggage, amp up the exercise, and create new goals!

So why not also make goals for your personal finances?

For many, the new year is the right time to kill debt, create a savings account, or start investing. Wherever you are on your personal finance journey, always remember these eight simple finance rules to live by:

Thou Shalt Use a Budget

If you haven’t been using a budget, start the new year by creating one. Or if you’ve fallen off the wagon, it’s time to reevaluate your needs and create a new budget for this next season. Budgeting will give you a general idea of how much you are allowing yourself to spend on an item. The practice will help you keep track of where your money is going.

Thou Shalt Pay Off Your Credit Card On Time

A new year means getting rid of the old and bringing in the new. Kick your bad financial habits to the curb and create new habits that will bring positive results. For example, don’t allow your credit card balance to hang around like a nasty ex. Pay off your credit card on time, every single time.

Thou Shalt Not Buy Unnecessary Things

Let’s stick to the general rule that you should spend below your means. If you find yourself in a dilemma at the store because you want to make a purchase but don’t know if you should, ask yourself, “Is this a want or is this a need?” It’s time to cut the habit of buying unnecessary items. If you’re questioning if you should even buy something, perhaps it’s a sign that you don’t actually don’t need it.

Thou Shalt Stick To The Plan

If you stuck to the first rule and created a budget for yourself, the next rule that you should follow is to stick to the budget. Easier said than done, but stick to the plan with a laser-like focus that doesn’t allow you to make room for exceptions. Stick. To. The. Plan.

Thou Shalt Have a Savings Goal

Do you have savings set aside for yourself? Did you know that nearly 20% of Americans don’t have any savings set aside? If you fall within the 20%, start saving for yourself in 2020. Create a savings goal, whether that be $1000 or $30,000. The point is to start the habit of setting aside savings for yourself in case of a rainy day.

Thou Shalt Plan For Every Dollar

Have you ever heard the saying, “Either you direct your money or your money directs you?” The point of the saying is that you need to control your finances instead of letting your finances get out of control. The best way to “direct” your money is to decide what each dollar will do for you. Every dollar is going somewhere, whether it be into your savings account or wasted on an unnecessary expense. You get to choose where the dollar goes. If you plan ahead by deciding where each dollar goes then you’ll feel more comfortable with your finances knowing that every dollar is accounted for.

Thou Shalt Eat At Home More

One of the larger expenses for many Americans is eating out. Instead of letting your restaurant budget eat away your cash, create a larger grocery budget in place of your restaurant budget. Limit eating out and learn to cook simple, fast, and healthy meals for yourself. This will pay off in multiple ways in the long-run.

Thou Shalt Check Thy Credit Report

Did you know that every 12 months you are entitled to a free credit report from each of the three credit bureaus? Credit reports can sometimes have inaccuracies or mistakes that can impact your credit score negatively, so it’s important to keep track as often as you can. In the case where you find an inaccuracy on your report, you will need to dispute the mark with the bureaus.

With the New Year just right around the corner, get a fresh start on your personal finance journey by following these rules for the new year!

Photo Credit: Steve Johnson

December 27, 2019

Question of the Week

What's your retirement magic number?
VoteResults

Comments

  1. 1

    Duke says

    Budget: 50 30 20
    If credit card cannot be paid off each month cut it in half,
    Want or a need? A need is something in the now; a want is I can wait 3 days and forget about it. Manage impulse.
    Plans should have some level of forcing functions and rewards. Clear destination….give it a number.
    Trick your mind. I have found if I use cash and every time I get a 5 dollar bill I place it in a jar. The end of the year I have saved 20%. 5% goes to me 15% goes to Christmas gifts.
    Credit report Should not trump savings rate!
    Eat at home is Not take out.
    Try to plan a great vacation 75 miles from home without shopping.
    The toughest one. Every minute watching The tube/phone or playing a video game has to be earned with minutes of community service. Be creative.
    Its not easy living in Penzonia but the trade off is peace of mind. These ideas are for entertainment purposes only.

    • 2

      Len Penzo says

      Great tips, Duke. I have written about the $5-bill saving trick before: https://lenpenzo.com/blog/id32828-how-i-saved-36000-dollars-in-12-years-by-doing-this-simple-trick-2.html

      Curious to know what you mean when you say your credit report should not trump your savings rate. Are you tying the credit score to a specific numeric rate?

  2. 3

    Joe DeGiorgio says

    Excellent post, Len – I’ve let some of these slip recently (especially the going out to eat part – oy!!), but the new year is always a great time to reflect, and get important goals and tasks back on track.

    Happy Holidays to you, and your family!

    • 4

      Len Penzo says

      Thanks, Joe! Happy holidays to you and your family too.

  3. 5

    drplasticpicker says

    Love those tips. So many of these personal finance mantras go hand-in-hand with waste reduction. Eat at home and don’t buy unnecessary things.

    • 6

      Len Penzo says

      Thanks, Dr. P!

  4. 7

    Harold Palmer says

    Len, You write some really good stuff and I would like to forward it on to certain people but, I do not seem to know how to do that. Is it just my ignorance or something else?

    • 8

      Len Penzo says

      Thank you, Harold! I depend on word of mouth to gain readership.

      The best way to forward articles is by copying the article’s link (for example, “http://lenpenzo.com/blog/id58647-8-finance-rules-to-live-by-in-2020.html”) at the top of your browser and then paste it in an email, or paste the link on Facebook, or on Twitter.

Trackbacks

  1. Black Coffee: A Financial System In Jeopardy – Len Penzo dot Com says:
    January 25, 2020 at 6:51 am

    […] 8 Finance Rules to Live by in 2020 […]

Copyright © 2025 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2025

Get Len Penzo dot Com delivered weekly!

Join our family of more than 40,000 happy subscribers!

Invalid email address
We promise we'll never spam you. You can unsubscribe at any time. 
Thanks for subscribing!