Managing ones personal money and making a sound financial decision is obviously not a rocket science but for some people, it is a difficult task.

But trust me, managing your money properly shouldn't be so difficult if you follow some guidelines. These guidelines will not only guide your spending, they also cover everything that has to do with how you relate with your money.

Here are 10 commandments you need to follow to have a sound personal finance experience.

1. Thou shall spend less money than you make

You can avoid some unexpected expenses.
You can avoid some unexpected expenses.

To keep your finances in order, you’ve really got to live on less money than you make. That means you'll need to have a side hustle to increase your income or spend on items and services that are not above the line of your income. Whichever you choose, make sure you are not spending above your means.

2. Thou shall know the difference between wants and needs

Wants are the things you desire which you can do without. Needs on the other hands are those things you must have, they are necessities. You should be able to keep your personal finance in order if you can distinguish between these two before you spend your money.

3. Thou shall set financial goals

Your financial goals are those goals that help you to actualize some sort of financial independence, nobody can determine these goals for you, it is your decision to make and you need to take time to figure out what your goals are. The earlier you do this the better.

4. Thou shall save and invest

Investment moves you need to start making
Investment moves you need to start making

In order to attain your financial goals, you need to make your money work for you. However, your money won't work for you except you save and invest it in a profitable business. While saving helps you to take care of emergencies, investment helps to grow your money.

5. Thou shall pay your debt

According to the Bible, ‘’the borrower is the slave to the lender’'. No matter how much you borrow, it is important you pay off your debt. If not, you’ll only end up working for the lender all your life.

6. Thou shall avoid scam

Scammers are everywhere, as you are working to realize your financial goals, they are also working to dupe you of your money. So when you see a business that guarantees a high return with no legal documents or any investment you feel sceptical about, don’t put your money into it. It is better your money remains in the bank than lose it to scammers.

7. Thou shall plan for old age

Old couple pensioner
Old couple pensioner

Nobody is in the best position to take care of your old age except the younger self. As soon as you start working and making money, it is important you plan for retirement. No matter how long you spend working, the retirement day will surely come and planning for it now is the best way to address it.

8. Thou shall pay yourself first

Before paying any bill, pay yourself first. Financial experts say one should pay oneself a minimum of 10% that will not be used for any monthly expense immediately after receiving your paycheck. It is very easy if this process is automated. Your bank can help you with this.

9. Thou shall have a monthly budget

How to manage your money effectively
How to manage your money effectively

Whenever personal finance is the topic of discussion, budgeting is always at the centre of it. That means your efforts to manage your money properly won't be successful if your expenses are not guided by a monthly budget.

10. Thou shall avoid keeping up with the Joneses

Apart from impulse buying another way you can quickly run out of money is to spend your money copying the lifestyle of others who are obviously making more money. Don’t ever try to keep up with anyone, make your money legitimately, spend wisely and invest reasonably.