Money Rules: Rule Your Money, or Your Money Will Rule You
"Money Rules: Rule Your Money, or Your Money Will Rule You" by Gail Vaz-Oxlade offers practical advice to help individuals take control of their finances. Here are some key insights from the book, explained in depth with examples: 1. Prioritize Needs Over Wants (Rule #17) Vaz-Oxlade emphasizes the importance of distinguishing between needs and wants. Needs are essentials required for survival and basic well-being, such as food, shelter, clothing, and healthcare. Wants are non-essential items or services that enhance comfort or pleasure, like dining out, vacations, or luxury gadgets. Example: Consider a person who earns ₹50,000 per month. Their monthly expenses include ₹20,000 for rent, ₹10,000 for groceries and utilities, ₹5,000 for transportation, and ₹15,000 for dining out and entertainment. In this scenario, the ₹15,000 spent on dining out and entertainment represents wants. By reducing this expenditure, they can allocate more funds toward savings or paying off debt. 2. ...