How to invest your money wisely anywhere in the world Use rules of thumb to start First things first, your knowledge on personal finance is going to take a while to become top notch so don’t aim for perfection to start with, aim for progress. Start with thumb-rules on what to do with your income. Many financial planners might rubbish this but remember progress is your aim, not perfection at the moment. Use these personal finance rules of thumb to distributing your income wisely between spending and saving. Remember it is easier said than done, but saving early on in life is very very tough when you have just got out of college and you want to spend on those beautiful things in life that you planned while you burned the midnight oil. But saving money early in your life matters. If you understand and adsorb this in your mind, half the battle is already won. Start with the thumbrules. Don’t get carried away and run into bad debt. So if you love credit cards and personal loans, it would be better if you love anything else except these. Both have been the single most reason for early savers to go down the drain. A huge debt will leave little money for you to save. And if you are paying the minimum on your credit card, God bless you. You need to avoid credit card debts and say no to personal loans. But the cause of bad debt is really the failure of investors, new or old, to differentiate between needs and wants. And discretionary and non discretionary expenses. Of all the clients that I have had, controlling expenses has been the biggest challenge always. Including mine ! You can become an expert on how to invest your money wisely but if you rake up bad loans, you will be anything but wise.