Learn how to be frugal, not cheap.
Prioritise your spending instead of spending less on everything.
Spend on the real you — not the imaginary you.
Don’t fall into this trap, if it doesn’t fit you now – don’t buy it.
Don’t ever cosign a loan.
If the borrower—your friend, family member, significant other, whoever—misses payments, your credit score will take a plunge, the lender can come after you for the money, and it will likely destroy your relationship.
Don’t make impulse purchases.
If you want to make an impulse purchase, try to wait a week, you might change your mind.
Spend on experiences, not things.
By spending money on experience, you will get emotions and memories that will last.
Plan for the unexpected.
This is the money to give you peace of mind that if something unexpected crops up – the car break-down or you chip your front tooth – then you’re able to deal with it.
Get paid what you’re worth and spend less than you earn.
Make sure you know what your job is worth in the marketplace. No matter how much or how little you’re paid, you’ll never get ahead if you spend more than you earn.
Pay off credit card debt.
It is easy to forget that you are spending your money when you use a credit card. It is easier to keep track of how much you spend when you actually see the amount of money you are spending on something.
When you get a raise, raise your retirement savings, too.
Every time you get a bump in pay, the first thing you should do is up your automatic transfer to savings, and increase your retirement contributions.
Stick to a budget.
It is important to keep a track of your money and set up spending goals.
Create a financial calendar.
It is a good way not to forget to pay your quarterly taxes or track your expanses and income.
Keep your savings out of your checking account.
If you see you have money in your checking account, you will spend it.
Set specific financial goals.
Use dates and numbers in order to complete your goal, be specific.
Learn how to savor.
Appreciate what you have instead of getting more things that might make you happy.
Evaluate purchases by cost per use.
Try to understand whether you need it or not, and how often you will use it, before buying something.
Open a savings account at a different bank than where you have your checking account.
If you keep both your accounts at the same bank, it’s easy to transfer money from your savings to your checking.
Start a side hustle.
It is a great way to boost your income if you need money.
Focus on your situation.
Don’t compare yourself with others. Beware of your financial situation, you’re only competing against yourself.
Make bite-size money goals.
Create small short-term goals to see quicker results.
Find ways to increase your income.
Perhaps you could take a free online course to improve your skills.
Draft a financial vision board.
A vision board is a good way to motivate yourself to keep track of your finances.
Make salary discussions at your current job about your company’s needs.
When negotiating pay or asking for a raise, emphasize the incredible value you bring to the company.
Start with small debts to help you conquer the big ones.
Paying off the little debts can give you the confidence to tackle the larger ones.
Discuss finances with your significant other.
It’s a good idea to discuss your finances with your partner to know if you are on the same page about finances.
Contribute to a retirement plan.
You should consider contributing to a retirement plan if you can afford to.
Have a savings plan.
Resolve to set aside a minimum of 5{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} of your salary for savings.
Invest.
If you’re contributing to a retirement plan and a savings account and you can still manage to put some money into other investments, all the better.
Take a daily money minute.
Take a few minutes a day to check your money transactions. It will help you to detect your weak spots and spend less during the day.
Allocate at least 20{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} of your income toward financial priorities.
It is good to have emergency savings or save money to buy property.
Review your credit report regularly—and keep an eye on your credit score.
A less-than-stellar credit score has the potential to cost you thousands.
Understand, it’s in your power to have a positive relationship with money.
Your relationship with money is not fixed, it’s one that can evolve over your lifetime. Change the way you think about money to improve your financial wellbeing.
Take your values into account when making a purchase.
Carefully consider every purchase you make and ensure it fits with your values.
Maximize your employment benefits.
Make sure you are taking advantage of the ones that can save you money by reducing taxes or out-of-pocket expenses.
Check your interest rate.
Paying attention to interest rates will help inform which debt or savings commitments you should focus on.
Banish toxic money thoughts.
Don’t be a fatalist and so harsh on yourself switch to more positive mantras and take action.
Keep your credit use below 30{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} of your total available credit.
Otherwise known as your credit utilization rate, you calculate it by dividing the total amount on all of your credit cards by your total available credit. And if you’re using more than 30{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} of your available credit, it can ding your credit score.
Use budgeting apps.
The apps can help you bring all of your finances into one simple dashboard and make your life easier.
Use the 50/30/20 rule.
Senator Elizabeth Warren’s 50/30/20 rule. The idea is to spend your income in the following way:
– 50{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} on needs, such as groceries, housing, utilities, and health insurance.
– 30{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} on wants, such as dining out, shopping, and hobbies.
– 20{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} on savings, such as emergency savings, a college fund, or a retirement plan.
If you have bad credit, get a secured credit card.
It won’t let you overspend.
You can have too much savings.
If you have more than six months’ savings in your emergency account (nine months if you’re self-employed), and you have enough socked away for your short-term financial goals, then start thinking about investing.
Pay attention to fees.
Stick with low-cost index funds, because they might cost you in the long run.
Consider adopting the three-category approach to budgeting.
First, look at your income. Then check your expenses (commitments, everyday expenses, occasional expenses).
Review your insurance coverages.
You should have enough insurance to protect your dependents and your income in the case of death or disability. But be careful not to get into paying too much for life and disability insurance.
Update your will.
Even if you don’t have much, it is still better to take care of your loved ones and write a will.
Keep good records.
If you aren’t careful about keeping thorough records, you’re probably not claiming all your allowable income tax deductions and credits. Set up a system now and use it all year.
Budget about 30{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} of your income for lifestyle spending.
This includes anything that doesn’t cover basic necessities, such as movies, restaurants, happy hours etc.
Get a money buddy.
You can pick up good habits from each other, so try to surround yourself with people that developed financial habits.
When negotiating a salary, get the company to name figures first.
Getting a potential employer to name the figure first means you can then push them higher. You never know when you’re lowballing or highballing.
Learn about investing options.
Make sure you understand the options available and their pros and cons before you give your money away.
Invest in assets, and avoid purchasing liabilities.
In essence, an asset puts money into your pocket, and a liability takes money out of your pocket.
Track your net worth.
Keep an eye on it, and it can help keep you apprised of the progress you’re making toward your financial goals—or warn you if you’re backsliding.
Adopt a spending mantra.
Pick out a positive phrase and ask yourself every time you make expanses.
Get your finances and body in shape.
Sport will help you to become more disciplined and productive.
Always choose federal student loans over private loans.
Federal loans have flexible terms of payment.
Opt for mortgage payments below 28{797b2db22838fb4c5c6528cb4bf0d5060811ff68c73c9b00453f5f3f4ad9306b} of your monthly income.
That’s a general rule of thumb when you’re trying to figure out how much house you can afford.
Rebalance your portfolio once a year.
You need to take a look at your brokerage account every once in a while to make sure that your investment allocations still match your greater investing goals.
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