Moneyvests.com - How To Make Money Tips, Save Money and Invest Money
Monday, August 8, 2022
  • Home
  • How to Make Money
  • Investment Tips
    • Real Estate
    • Law
  • Crypto
  • More..
    • Save Money
    • Money Advisor
    • Affirmations
    • Banking
    • Finance
    • Education
  • Contact
    • About Us
    • Privacy Policy
    • DMCA Notice
    • Disclaimer
    • Terms & Conditions
No Result
View All Result
  • Home
  • How to Make Money
  • Investment Tips
    • Real Estate
    • Law
  • Crypto
  • More..
    • Save Money
    • Money Advisor
    • Affirmations
    • Banking
    • Finance
    • Education
  • Contact
    • About Us
    • Privacy Policy
    • DMCA Notice
    • Disclaimer
    • Terms & Conditions
No Result
View All Result
Moneyvests.com - How To Make Money Tips, Save Money and Invest Money
No Result
View All Result
Home Finance

3 Financial Rules That Help You Borrow Better

moneyvests by moneyvests
July 24, 2022
in Finance
0
3 Financial Rules That Help You Borrow Better
0
SHARES
10
VIEWS
Share on FacebookShare on Twitter

Table of Contents

  • 3 Financial Rules That Help You Borrow Better 
    • RELATED POSTS
    • Everything You Need To Know On How To Sell And Promote Gold
    • 6 Ways to Prepare for Your Finance and Accounting Degree
  • 1. The 20/10 Rule
  • 2. The 20/4/10 Rule
  • 3. The 28/36 Rule
  • The Takeaway:
    • Conclusion

3 Financial Rules That Help You Borrow Better 

 

Be honest — when you’re making decisions about your finances, you’re winging it half the time.

RELATED POSTS

Everything You Need To Know On How To Sell And Promote Gold

6 Ways to Prepare for Your Finance and Accounting Degree

After all, it’s not like your budget comes with an instruction manual that tells you how to manage or borrow money. You’re picking things up as you go, learning to shop for cash advances and pay them off through trial and error.

Wouldn’t it be easier if you had a set of rules to refer to for guidance? While step-by-step instructions on how to run your financial household don’t exist, here’s the next best thing. Check out these financial rules of thumb to help you handle cash advance loans online like a pro.

1. The 20/10 Rule

If you rely on cash advances like installment loans and lines of credit often, this rule can help you gain some perspective on your borrowing habits.

The 20/10 Rule sets sharp spending caps on debt payments according to your yearly and monthly net income (that’s your take-home pay after taxes).

Your debt payments should take up no more than 20% of your annual net income and 10% of your monthly net income.

These numbers represent the maximum amount you should be spending, so aim to go under. If you’re over, look to your budget to see how you can pay off debt and build an emergency fund to offset your reliance on cash advances.

2. The 20/4/10 Rule

For those looking to finance their car with auto loans, this rule sets out some boundaries about your financing:

  • Put down a down payment of 20% or more of the car’s purchase price
  • Your loan term shouldn’t exceed four years
  • You shouldn’t spend more than 10% of your monthly income on all vehicle expenses, including maintenance, gas, insurance, and loan payments
See also
The Caddie Network and Caddie Now Join Forces

Don’t worry if you can’t hit all of these guidelines perfectly. A lot has changed since this rule was established. Gas prices are at an all-time high, and it’s not a great time to buy used or new cars. This rule is here to help prevent you from overborrowing on a car, so try to stick to these numbers as close as you can.

3. The 28/36 Rule

Next on the list is a rule governing your debt-to-income ratio (DTI), a number that lets you know how much of your income goes towards debt payments. Your DTI includes any debt you pay, from cash advances, lines of credit, credit cards, mortgages, student loans, installment loans, auto loans, and more.

The 28/36 Rule says you should spend:

  • No more than 28% of your income on household costs
  • No more than 36% of your income on debt payments

Going over these limits puts pressure on your budget, as most of your cash will go towards the roof over your head and debt, leaving very little for other essentials and savings.

If you struggle with the 28/36 Rule, talk to a free credit counseling organization about your options. A reputable organization can give you actionable advice on budgeting and paying off debt.

The Takeaway:

Some people perform better when they have rules. If you appreciate setting financial boundaries, lean into these guidelines. They’ll help you take stock of your finances — whether you’re in the process of looking for an advance or paying one back.

 

 

 

Conclusion

We hope you enjoyed this article… What are your thoughts?

Please feel free to share this article!

 

 

Fact Check

We strive to provide the latest valuable information for our readers with accuracy and fairness. If you would like to add to this post or advertise with us, don’t hesitate to contact us.  If you see something that doesn’t look right, contact us!

Post Views: 63
Continue Reading
ShareTweetPin
moneyvests

moneyvests

Related Posts

promote god

Everything You Need To Know On How To Sell And Promote Gold

by moneylife
July 23, 2022
0

Where To Sell Your Gold in An Emergency? The past few months have been especially difficult for those living in...

6 Ways to Prepare for Your Finance and Accounting Degree

6 Ways to Prepare for Your Finance and Accounting Degree

by moneyvests
July 21, 2022
0

6 Ways to Prepare for Your Finance and Accounting Degree   Accounting and finance degree programs are said to be...

global health estimates

What Do You Know About Worldwide Health Estimates

by moneylife
July 12, 2022
0

Introduction Notwithstanding fast advances in innovation and medication in the present globalizing world, some low-and center pays nations to keep...

A Silver Lining In Your Financial Legacy 

Invest in Silver : A Silver Lining In Your Financial Legacy

by moneyvests
July 14, 2022
0

A Silver Lining In Your Financial Legacy      As we become older and hopefully wiser, we start thinking about...

cut-off in finance

What is a Cut-off in Finance?

by moneylife
June 30, 2022
0

What is a Cut-off in Finance? Cut-off, called easy reduce is a reinsurance settlement provision that stops the reinsurer from...

Next Post
What is different Insurance Coverage for Your Home?

What is different Insurance Coverage for Your Home?

Title Loan Without Registration

Title Loan Without Registration

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

three × five =

Recent Posts

  • Tax Advantages of Owning a Cargo Ship – Business Insider August 8, 2022
  • How Do Ship Owners Make Money? Business Insider August 8, 2022
  • Title Loan Without Registration August 4, 2022
  • What is different Insurance Coverage for Your Home? August 1, 2022
  • 3 Financial Rules That Help You Borrow Better July 24, 2022

RECOMMENDED

Tax Advantages of Owning a Cargo Ship - Business Insider

Tax Advantages of Owning a Cargo Ship – Business Insider

August 8, 2022
How Do Ship Owners Make Money? Business Insider

How Do Ship Owners Make Money? Business Insider

August 8, 2022
  • 86.2k Followers
  • 651 Followers
  • 23.6k Followers

MOST VIEWED

  • Top 15 Bob Proctor Money Affirmations for Attracting Money and Wealth

    Top 15 Bob Proctor Money Affirmations for Attracting Money and Wealth

    0 shares
    Share 0 Tweet 0
  • Top 5 Charities That Help Single Mothers 2022

    0 shares
    Share 0 Tweet 0
  • Who pays more money, Facebook or YouTube? 5 Things to Know

    0 shares
    Share 0 Tweet 0
  • How to make money on TikTok by watching videos – 6 Tips to Know

    0 shares
    Share 0 Tweet 0
  • Credit Card Interest Calculator: 10 Ways it can help you save money

    0 shares
    Share 0 Tweet 0
Moneyvests.com – How To Make Money Tips, Save Money and Invest Money

How to make money today with MoneyVests.com - We provide the latest tips for making money, save money, finance, investing, insurance, crypto, and more...

  • Trending
  • Comments
  • Latest
Top 15 Bob Proctor Money Affirmations for Attracting Money and Wealth

Top 15 Bob Proctor Money Affirmations for Attracting Money and Wealth

May 16, 2021
Top 5 Charities That Help Single Mothers

Top 5 Charities That Help Single Mothers 2022

May 3, 2022
10 Tips on how to become a mystery shopper: Make extra $200 monthly

10 Tips on how to become a mystery shopper: Make extra $200 monthly

June 25, 2021
Tax Advantages of Owning a Cargo Ship - Business Insider

Tax Advantages of Owning a Cargo Ship – Business Insider

August 8, 2022
How Do Ship Owners Make Money? Business Insider

How Do Ship Owners Make Money? Business Insider

August 8, 2022
Title Loan Without Registration

Title Loan Without Registration

August 4, 2022
ADVERTISEMENT
  • About Us
  • Terms
  • Privacy Policy
  • DMCA Notice
  • Disclaimer
  • Contact

© 2022 - www.moneyvests.com - All rights Reserved.

No Result
View All Result
  • Homepages
    • Homepage Layout 1
    • Homepage Layout 2
  • Business
  • Entertainment
  • Tech

© 2022 - www.moneyvests.com - All rights Reserved.

en English
af Afrikaanssq Albanianam Amharicar Arabichy Armenianaz Azerbaijanieu Basquebe Belarusianbn Bengalibs Bosnianbg Bulgarianca Catalanceb Cebuanony Chichewazh-CN Chinese (Simplified)zh-TW Chinese (Traditional)co Corsicanhr Croatiancs Czechda Danishnl Dutchen Englisheo Esperantoet Estoniantl Filipinofi Finnishfr Frenchfy Frisiangl Galicianka Georgiande Germanel Greekgu Gujaratiht Haitian Creoleha Hausahaw Hawaiianiw Hebrewhi Hindihmn Hmonghu Hungarianis Icelandicig Igboid Indonesianga Irishit Italianja Japanesejw Javanesekn Kannadakk Kazakhkm Khmerko Koreanku Kurdish (Kurmanji)ky Kyrgyzlo Laola Latinlv Latvianlt Lithuanianlb Luxembourgishmk Macedonianmg Malagasyms Malayml Malayalammt Maltesemi Maorimr Marathimn Mongolianmy Myanmar (Burmese)ne Nepalino Norwegianps Pashtofa Persianpl Polishpt Portuguesepa Punjabiro Romanianru Russiansm Samoangd Scottish Gaelicsr Serbianst Sesothosn Shonasd Sindhisi Sinhalask Slovaksl Slovenianso Somalies Spanishsu Sudanesesw Swahilisv Swedishtg Tajikta Tamilte Teluguth Thaitr Turkishuk Ukrainianur Urduuz Uzbekvi Vietnamesecy Welshxh Xhosayi Yiddishyo Yorubazu Zulu