Experts swear by these 8 guidelines to live by when saving, borrowing and spending money

The best personal finance advice is tailored to your individual situation. That said, a few rules of thumb can cut through the confusion that often surrounds money decisions and help you build a solid financial foundation.

The following guidelines for saving, borrowing, spending and protecting your money are culled from nearly three decades of writing about personal finance.

In an ideal world, you'd start saving with your first salary and keep going until you're ready to retire. You also wouldn't touch that money until retirement.

Even if you can't save 15 per cent of your income for retirement, as recommended by US-based Fidelity and other financial services firms, anything you put aside can help give you a more comfortable future. Aim to take full advantage of any company contribution you may or may not get for a retirement fund - that's free money - and borrow against or cash out retirement funds only as a last resort.

You may have read that you need an emergency fund equal to three to six months of expenses, but it can take years to save that much. That's too long to put off other priorities, like saving for retirement. A starter emergency fund of $500 (about Dh2,000) can be your first goal, and then you can build it up.

While you're saving, try to create other sources of emergency cash, such as space on your credit cards or an unused home equity line of credit (a loan in which the lender agrees to lend a maximum amount within an agreed period, where the collateral is the borrower's equity in their house).

Got kids? Open a college savings plan and contribute at least a minimum amount, which is typically $15 (Dh55) to $25 (approx.. Dh100) a month. Retirement savings comes first, but anything you can save will reduce how much your child may need to borrow.

Also, research shows the simple act of saving for college increases the chances that a child from a low- to moderate-income family will go to college.

A college degree can pay off in higher earnings, but lenders may allow you to borrow far more than you can comfortably repay. If you're borrowing for your own education, consider limiting your total debt to what you expect to make your first year out of school.

If you're a parent borrowing for a child's education, aim for payments that are no more than 10 per cent of your income and that still allow you to save for retirement. If your payments are higher than 10 per cent of your income, investigate income-driven repayment plans that could bring down your costs.

Credit cards offer convenience and can protect you from fraud and disputes with merchants. But credit card interest tends to be high, so don't carry credit card balances if you can avoid it. If you routinely pay your balances in full, look for a rewards card with a sign-up bonus that returns at least 1.5 per cent of what you spend.

If you want to be a homeowner, the best time to buy your first home is when you're financially ready and in a position to stay put for a few years.

Opt for a mortgage rate that's fixed for as long as you plan to remain in the home, and don't make extra payments against the principal amount (borrowed amount) until you've paid off all other debt and are on track for retirement.

Buying a car right now isn't a great idea supply-chain kinks and other pandemic-related issues have inflated the cost of both new and used cars. In general, though, buying a used car can save you a ton of money over your driving lifetime, as can driving your car for many years before replacing it.

These days, a well-maintained car can last 200,000 miles without major issues, according to US-based data analytics firm J.D. Power. This means you can get roughly 13 years of service out of your car if you drive it 15,000 miles a year. Ideally, you would pay cash for cars. If you need to borrow, try to limit the term of your loan to a maximum of five years.

Use insurance to protect yourself against catastrophic expenses rather than smaller costs that you can easily pay out of pocket. If you have sufficient savings, consider raising the deductibles on your policies to save money on premiums.

Be careful about high-deductible health insurance policies, though. Having a high deductible could cause you to put off medical care, and it's better to err on the side of safety when it comes to health.