It may sound really old-fashioned but I follow the 10% buying rule in my life. I don't like being in debt. I had been paying off half a million for 10 years. It made me so pissed off about every other thing. I promised myself I will rather cut my need a little bit but will never loan again.

After that, I'm following this 10% rule and I'm proud to say that I have saved some in my account.

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The rule is simple. What you are buying should not exceed 10% of what you earn in a month. And if you have to pay your debt then this amount should be less than 10% from my experience. If you can follow this in every luxury product you buy, you will never be in debt and have to cut off your need.

I understand why people go for buying the newest car. I have some of my friends who also bought luxurious cars and now paying a huge amount of debt. They are not following the 10% rule but they are good to go as long as they have their secure service. But one of my friends lost his job, had to sell his car and apartment because he had not saved anything.

So 10% rule may not sound will save you but it works when you are in a bad situation. Remember, no one will save your a*s when you are in a financial crisis. You have to fight alone. So it's better to make a saving plan and buy as per your earning.

Also, not everyone will face a crisis because they didn't follow the 10% rule. But it can be you in 100. I want to be that person no more.

If you make $5000 a month, expend/pay $500 on your car or any other things you are eager to buy, not more than that. I have seen people live penny by a penny after buying something luxurious or cut off what needs more than the luxurious thing. It's better to save a little than expending all you have.

What do you think?

Thanks for reading my post.

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