Money is not the be all and end all of everything but it definitely is something. It’s like fuel for a car – you can’t go far on empty. Handle your finances well, you get more freedom. Manage it poorly, you know what happens. If you’re struggling with increasing your savings and reducing your debt to income ratio, follow my top personal financial tips to turn your life around.
1. Know what you’re worth.
A lot of people are getting paid less than what they deserve. If you want to earn more and save more, don’t allow yourself to be underpaid. Research the ideal rate of your job role and compare it with how much others in your company are making. Negotiate with your employer if you must.
2. Spend less than you earn.
It doesn’t matter how many personal financial tips you follow. If you fail to follow the simple rule of spending less than your monthly income, you can’t pay off your credit card debt. And yes – by spending less, you actually need to eliminate over the top expenses.
3. Maintain your health and well-being.
Business owners are obsessed with getting rich to the point of neglecting their health. Remember: You can’t do much and enjoy the wealth you have when you’re lying in a hospital bed. When was the last time you breathed deeply? Get adequate rest. Invest in natural foods. Have regular exercise routine.
4. Invest in real estate.
Own a rental property as early as possible. This is one of the most reliable personal financial tips you’ll hear of. Real estate will give you continuous cash flow and pave way for generation wealth. It’s also easy to get finance if you think you lack funds. Start finding homes for sale on top websites or near you.
5. Read or listen to business news.
Business information from top sources, whether online and offline, helps you stay updated on the latest personal financial tips. You can even tune listen to popular world finance podcasts on iTunes such as The Rich Dad Radio Show or Radical Personal Finance.
6. Don’t always buy based on price.
Saving doesn’t mean you should always go for cheap options. Being frugal really means making smart purchasing decisions. Cheap items break down easily, costing you more money down the line. It’s safe to go cheap on common supplies like soap but when it comes to really important ones, prioritize quality.
7. Plan your meals.
A close friend of mine who happens to be a finance expert told me that if I wanted to save money, I need to start preparing my own meals. Meal planning helps you shop cheaper and natural alternatives at the grocery store and avoid throwing away food.
8. Create a monthly finance budget.
A monthly budget is like a roadmap. It guides you, prevents you from overspending, and helps you track all your expenses. Moreover, it gives you an overall picture of your financial situation. You can easily set a budget using a simple notebook or an app.
9. Start a side hustle.
If you want to grow your income, there are plenty of side hustles or extra jobs to choose from. You can offer to babysit or be an online coach and start your own blog that offers personal financial tips. Rich people always rely on multiple streams of income.
10. Avoid co-signing a loan.
It doesn’t matter if it’s a close friend or family member. Agreeing to be a co-signer may seem like a kind gesture but this can lead to terrible consequences in the event that the person cannot pay the debt. Your credit score and relationship will be negatively affected.
11. Press your mental pause button.
As I was searching for personal financial tips to help me stop my impulse buying habit, I came across this concept of the mental pause. When you catch yourself being tempted to buy something unplanned, give yourself a few minutes to really think about whether you need it or not.
12. Invest in a good roof.
Have your energy bills increased lately despite a well-functioning heating or cooling system? Try to get a free roof inspection. Your roof might be suffering from old age or damage. If possible, get a roof retrofit or have it replaced with a new system to preserve your energy.
13. Rent out extra space in your home.
You can still earn money from your home without being a landlord. Do you have an unused room? List it on Airbnb. You’ll be able to make extra cash plus help travelers who cannot afford a hotel to save. You might want to check your state or local laws for possible restrictions or requirements.
14. Get rid of your magazine subscriptions.
Magazine subscriptions are really a waste of money – even those magazines that provide personal financial tips! Do you really read them? Are these magazines the only best source of information to rely on when it comes to finance? There are thousands of free blogs on the web that offer the same advice.
15. Stop your credit card spending.
To stop creating new debt or prevent it from accumulating, leave your credit cards at home. Better yet, cut them up or freeze them. A study from the Massachusetts Institute of Technology reveals that people are more likely to spend beyond their means when they rely on credit cards instead of cash.
16. Buy or sell old, unused items on eBay.
Do you have items at home that haven’t been used for a year? Don’t throw them away just yet! Bring in extra cash by selling on eBay. You can put your things on auction or sell them for a fixed price. eBay offers lower fees plus shipping assistance. For buyers, eBay is a place where you can find cheap and amazing deals.
17. Set savings goals.
No matter where you are in your life right now, it’s important for you to set savings goals. Whether big or small, these goals need to be realistic and time-bounded. Some people set a financial goal to afford their dream wedding while some want to pay off their credit cards. When doing so, make sure to use the right savings tool.
18. Be in a happy place.
One of Warren Buffet‘s best personal financial tips is to put yourself in a happy position. Buffet believes that if you love where you are in your life, you wouldn’t be spending money on things that would help you forget your “misery.” So, if you’re dreading your job or any situation you’re in, do something about it.
19. Don’t always spend on toys.
Children are easy to please. Instead of spending on toys that won’t be enjoyed for a long time anyway, take your kids to the park. Let them move around and enjoy the great outdoors. If you’re going to buy a few toys, choose those that encourage socialization, movement, and the use of creativity.
20. Be a minimalist.
Minimalism changes your mindset on spending on and acquiring goods. A minimalist mindset resists the temptations of the high street. It embraces the fact that consumerism doesn’t put more money in your savings account. Adopt this way of life and you’ll be debt-free, worry-free, and more confident.
21. Live near your workplace and grocery stores.
Would you believe that the neighborhood you live in can affect your financial life? Transportation costs are more expensive than your energy and telecommunication bills. By living in an area where important establishments are within walking distance, you take fewer trips and save more.
What Personal Financial Tips Are You Using Now?
These 21 simple yet powerful personal financial tips will get you out of your troubles. You can also create and follow your own strategies that work best for you.
Don’t allow your current situation to drag you down. Start changing your habits and making better decisions so you can have a better financial future!