Since we began covering personal finance in earnest, we’ve learned a great deal—from the dozens of “I got out of debt” success stories we’ve highlighted to the dozens of psychological studies we’ve covered that relate better financial decision-making to a shift in behaviours.
Our 50 most useful money ideas have been gathered into one handy guide just in time for Financial Literacy Month, so we thought what better time to share them than now?
Whether you’re looking for methods to save money or increase your earning potential, these financial tips are still relevant today.
Here are some financial basics to get you started:
1. Create a budget calendar
As with an annual doctor’s appointment or auto tune-up, scheduling appointment reminders for these crucial money tasks might help you remember to pay your quarterly taxes or pull your credit report regularly. Do you know where to begin? The most comprehensive financial calendar on the market.
2. Verify Your Loan APR
When it comes to repaying your debt, which one should you prioritize first? One that has the highest interest rate is A Choosing a savings account might be confusing. One with the best interest rate. What’s the problem with credit card debt? Compound interest is to blame. It all boils down to this: Debt or savings commitments should be prioritized based on current interest rates.
3. Find Out How Much Money You Have
With your net worth, you can get a clearer idea of where you stand in terms of your finances. Keeping an eye on it might assist and keep you updated on your financial success or alert you if you’re going backward.
Mastering the art of budgeting
- Set a budget and stick to it.
- For every other object in your life, start here. Here’s a checklist to help you construct slick personal finances.
- Think about going on an “All-Cash Diet.”
- Getting out of a spending slump is easier said than done, but this will help. Let us know if you have any doubts. The cash diet forever altered these three people’s lives. And this woman discovered that going cash-only wasn’t as frightening as she had anticipated.
- Set aside a few minutes each day to review your finances.
- Alexa von Tobel, the founder and CEO of LearnVest, swears by the one-minute-a-day habit of checking her finances. When it comes to keeping track of your goals and identifying problems, this 60-second act is a lifesaver.
- Put aside at least 20% of Your Income Toward Financial Priorities.
- Setting priorities is building an emergency fund, working down debt, and saving for retirement. Do you think that’s a significant portion? There are many reasons why this number has become one of our favorites.
- Budget About 30% of Your Income for Lifestyle Spending
- Anything that isn’t a necessity, like going to the movies or going out to eat, falls under this category. You can save money while treating yourself to a little luxury if you follow the 30 percent guideline.
Ways to Get Money Motivated
1. Create a financial vision board
A vision board is a great way to keep yourself on track with your financial goals, as it serves as a visual reminder.
2. Identify and Achieve Your Financial Goals
When describing what you wish to achieve with your Money, use numbers and dates instead of words. Exactly when and how much debt do you hope to pay off? How much money do you want to put away, and when?
3. Adopt a Spending Phrase of the Day
When it comes to your spending, find an inspirational word that serves as a guideline. “Is this [fill in buy here] better than Bali next year?” If an item costs more than $30, I only charge it.
4. Love Yourself
It’s a little cheesy, but it gets the job done. Take it from this author, who paid off $20,000 in debt after recognizing that taking charge of her finances was a way to appreciate her worth. She paid off her debt.
5. Make Short-Term Goals for Your Money
Studies reveal that the more distant a goal appears and the less certain we are about its timing, the more inclined to give up on it. Instead of focusing on long-term goals (like buying a house), try to develop short-term goals that may be achieved more quickly, such as accumulating Money each week for a vacation in six months.
6. Get Rid of Negative Thoughts About Money
Say hello to the law of karma! Getting discouraged before you even begin is a surefire way to fail at your goal of paying off your debts. So don’t be a pessimist and switch to optimistic mantras instead.
7. Organize Your Money and Your Body
A study showed that greater exercise leads to a better salary since people tend to be more productive after working out. On the other hand, Running may assist you to improve your financial situation. Running a marathon has many of the same habits and discipline requirements as managing your Money well.
8. Learn the art of savoring
To savor something is to appreciate what you have right now rather than focusing on what you need to be happy.
9. Invest in a Financial Friend
One study found that friends with similar personality qualities can learn good money practices from each other. As one woman did, she gathered a group of pals for regular money lunches and paid off $35,000 in debt.
The Best Ways to Increase Your Income
1. Get the Company to Name Numbers First When Negotiating a Salary
You can’t tell if you’re lowballing or overbidding if you start with your current salary. To increase your chances of landing a job, get a prospective employer to identify a starting salary.
2. You Can Negotiate More Than Just Your Salary
A future employer may be willing to bargain with you about anything from your work schedule to your title to your maternity and paternity leave and vacation time.
3. Don’t Make the Assumption That You Can’t Get Unemployed
Only half of those eligible for unemployment benefits applied at the worst of the recent crisis. Take time to become familiar with the employment rules.
4. Educate Your Current Employer on Your Desired Salary Range
It doesn’t matter if you want a bigger house or more Money from your employment; what matters is that you remain a valuable member of the team. It’s important to underline the value you provide to the organization when negotiating compensation or asking for a raise.
How to Manage Your Debt
1. Start With Small Debts to Help You Conquer the Big Ones
According to research, paying off the smaller bills can give you the courage to move on to higher debts. Put another way. It’s like paying off a small sum on a department store credit card before moving on to a larger one. As a general rule, it’s best to focus your efforts on paying down the credit card with the highest APR.
2. Don’t ever sign a loan as a cosigner
Defaulting on a loan can harm your credit score, and the lender can take legal action against you to recover the money owed. This will likely lead to a breakdown in your relationship with the borrower.
A cosigner indicates that the bank doesn’t believe the person will be able to keep up with their end of the bargain. Ensure your student has exhausted all of their federal, state, and government-sponsored funding sources before agreeing to co-sign on any private loans.
3. Every Student Should Fill Out the FAFSA
Even if you don’t think you’ll qualify for assistance, you should still apply. To put it another way, more than 1.3 million students were denied a Pell Grant last year because they didn’t fill out the form.
4. Always prefer Federal student loans to private student loans
If your post-college career goals don’t pan out, you can extend the repayment terms of your federal student loans. Federal loans, on the other hand, often have lower interest rates. So, when taking out student loans, be prudent and steer clear of these other common blunders.
Investigate Your Repayment Options If You’re Struggling to Meet Your Federal Student Loan Payments
Call your lender and determine whether they have graduated, extended, or income-based repayment options available.
Opt for Mortgage Payments Below 28% of Your Monthly Income
If you’re attempting to determine how much house you can afford, this is a good general rule of thumb to follow. Find out more information about this particular numeric value by visiting this page. Look at what other couples can afford, and then have some fun with voyeurism!
How to Shop Wisely
1. Consider the Cost Per Use of a Product while making a purchase
Purchasing a trendy $5 shirt over a standard $30 shirt may appear more cost-effective, but only if you overlook the importance of the shirt’s quality. Consider how many times you’ll use or wear a new tech toy, culinary gadget, or clothing item before making a purchase decision. You should think about how much it costs per hour to have an experience!
2. Don’t Spend Money on things, but on experiences
Investing in experiences like a concert or a picnic in the park rather than material possessions is better to use your money. According to the findings of the study, this is the case.
3. Shop Solo
Have a buddy tell you, “That looks so adorable on you!” for every item you try on? Take a walk in the park instead of a trip to the mall to socialize and focus on your buying.
4. Invest in Your True Self, Not Your Ideal Self
As a chef, stylist, or triathlete, you may find yourself tempted to purchase items geared toward your own goals and aspirations.
5. Do away with Overdraft Protection
It may sound appealing, but banks use it to get you to go over your credit limit and then charge you for it. Explore overdraft protection and other banking pitfalls.
How to Plan for Your Future Retirement in the Best Way Possible
1. Begin saving as soon as possible
The following week. Not after you’ve received a pay increase, that is. Not this year. Today. Because of the strength of compound growth, the Money you put in your retirement fund today will have more time to increase.
2. Do Your Best to Avoid Early Withdrawals from Your Retirement Account
Taking early withdrawals from your retirement account will cost you dearly. You’re squandering all the effort you’ve put into saving and preventing the Money you’ve saved from being invested. Early withdrawals are frequently punished with severe fines to add insult to injury.
Finally, the money you withdraw will be subject to taxation. Cashing out early is the last choice due to all of these factors.
Giving money in exchange for receiving Money
Employer contributions to your retirement account are known as 401(k) matches. But if you contribute first, you’ll get that contribution. To be clear, a match is what it is.
After a raise, increase your retirement savings as well
Think back to all the times you vowed to put more money aside when your circumstances improved. We’re pointing the finger at you for that. You should immediately boost your automatic savings transfer and your IRA contributions every time you earn a raise. It’s only the first item on our retirement savings to-do list.
Ways to Be Prepared in Case of Financial Difficulties
1. Make Savings a Regular Part of Your Budget
A lack of savings is sure if you wait until the end of the month to begin saving. Instead, put aside a set amount of money each month. Learn how to avoid this and other costly blunders when saving money.
2. Keep your savings separate from your checking account
The universal reality is that if you see Money in your bank account, you will spend it. Period. Opening a separate savings account makes it less likely to spend your vacation money on yet another late-night online shopping binge, which puts you on the fast track to saving money.
3. Attend to Charges
Expense ratios, often known as fund fees, can reduce your returns. Even a fee of 1%, on the surface, does not seem like much. According to us, low-cost index funds are the best bet for most investors. myeduscholars.com.ng
4. Rebalance your investment portfolio.
There is no need to risk your money in the stock market. However, you should check your brokerage account at least once a year to ensure your investment allocations reflect your long-term financial plans. Rebalancing is simple.