Everyone is feeling the pinch nowadays. Global shipping complications, COVID-19, and rising fuel costs have led to many tightening their belts and looking for ways to save money.
The trouble is that these circumstances make it very difficult to know how to manage your money, especially if it seems to fly out on the essentials as soon as it hits your account.
If you need a bit of direction when it comes to personal finance then don’t fear. Our personal finance tips will help you get your house in order and help you become crisis-proof!
1. Build an Emergency Fund
Once the money you make is in your hands it is so easy to find ways to spend it. The reality is however that most of them do not help you in the long term. That is why getting into the habit of building an emergency fund no matter how much make is one of the most essential personal finance tips.
Why so important?
There is nothing more certain in life than unexpected expenses, be it your car breaking down or medical bills. Having something on the side protects you from these not destroying you financially as well as giving you a basis to get on the way to financial freedom.
Aim to have an emergency fund that covers your expenses for up to 3 to 6 months.
2. Learn How to Budget
How much money do you need?
A lot is what most people would answer.
However, knowing exactly how much needs to come out of your account each month is powerful information. It allows you to know exactly how much you can save, rather than coming up with an imaginary number that you will need to dip into each month. It also helps you to see where you could be wasting money.
There is not one money management wizard who doesn’t take budgeting seriously so this is one of the personal finance tips to take to heart. If you are a little lost about where to start triggator.com and other online budgeting tools can help you on your way.
3. Cash is King
In this time of instant gratification that we live in it has become normal to get things now that our bank account suggests are out of our price range. While those “buy now, pay later” credit deals may be appealing, they can set you on a path to financial ruin should you make it a habit.
Instead, try and make cash king in your household.
If you haven’t got the money for a non-essential item being patient and saving for it not only will give you a higher sense of gratification but also saves you money as you won’t have to pay off any additional interest that is lining the pockets of others.
4. Plans Not Wishes
The idea of having personal funds that will help you no matter what is appealing, but as the famous french writer Antoine de Saint Exupéry says “A goal without a plan is just a wish”.
At every stage in your life, it pays off to have a personal finance goal. Firstly you learn slowly how to use your money as a tool, and secondly, it helps if your life a continual sense of purpose. A good start is having a target number to have always in your account, but then you can include things like saving for a holiday or having a downpayment ready for your first property.
Some personal finance tips fall squarely into general good life advice, and this is certainly one of them!
Personal Finance Tips That Work
Which one of our personal finance tips will you put into practice today?
Whichever one it is you can be sure that you will reap the benefits not only now, but long into the future.
We hope you enjoyed this money management post. If you are looking for more great financial advice then have a look at the other expert posts on our blog.