Rules are made to be broken — or are they? When it comes to money management, there are some financial rules you’re better off keeping. While some money rules have loopholes that can work out, other types of financial-rule bending could wreck your finances. Here are seven money rules you should never break.
1. Plan for the end
Save for your retirement. Although you might reason that you can just work until you die, this isn’t such a great plan. If you happen to become disabled, chances are high you won’t be able to work. And if you are able to work, you might not be able to work at your previous level. So start putting away money for your retirement now. There are better plans than breathing your last breath at your office desk.
If you’re off to a late start, make an effort to maximize contributions to your retirement plan. For 2017, you can contribute a maximum of $18,000 to a 401(k). Those who are age 50 or older can make an additional catch-up contribution of $6,000.