The Only 2 Financial Rules You Need Live By

There's a lot of great advice out there to saving money. But if it overwhelms you, start with just these two simple rules and you'll be on your way to financial independence.

1. Pay Yourself First: The Best Kind of Cliché

"Pay yourself first" is a very common piece of financial advice. It's simple enough to follow, but that doesn't make it easy.

If you can save $200 per month at a 6-percent interest rate, you'll have more than $200,000 in 30 years. At the very least, you'll have a great savings fund at the ready for whatever life may bring. But how can you come up with that cash when you barely have any money left between paychecks?

The answer is to take that money off the top. And yes, it'll sting a bit at first.

2. Practice Mindful Spending

Having some leeway in your paycheck isn't a given, but I think many people have more wiggle room than they realize.

This is what I mean when I say that I think $10 is a lot of money. When I decide to buy something, it's a decision, not an impulse buy. I want to spend my money on things that really have value for me, not just things that are convenient or appealing at the moment. So while I can buy something nice once in a while — without guilt — I have a hard time going out for lunch or buying (you guessed it) a latte.

Less expensive purchases are an easy mental hurdle to get over because they're so small it seems that they could hardly amount to anything. The truth is, these seemingly insignificant purchases can easily amount to, or exceed, that $200 you may be aiming to save.