If you’re looking to improve your financial literacy and start looking at money in a healthier way, check out these amazing personal financial tips, that, if you put them into action, could change your financial life forever…
Set Up a Financial Calendar
Chances are you run calendars for your work and private life. But what about your financial life? If you don’t have a calendar that reminds you when you need to pay your taxes, make credit card payments, check your credit report and pay off those Quickle loans, then you’re missing out. You can use Google Calendars if you’re looking for a free option, but Dollarbird is a great app if you want to be able to do more with your financial calendar. Of course, it doesn’t matter how you do it as long as you do it!
Ladder Your Loans
If you have multiple loans and credit cards, then the one thing that you need to do if you want to pay them off with as little interest as possible is laddering them. What does this mean? It means ordering your loans and credit cards so that the one that accrues the most interest is at the top and the one with the lowest interest at the bottom. Then, you can start paying off the one with the most interest first, to accrue fewer costs overall.
Keep an Eye on Your Net Worth
It is your net worth that tells you exactly how well (or not) off you are. So, every few months, calculate the difference between your assets and debts, so that you get the full picture and you can work towards meeting your financial goals in the future.
Set a Budget
It’s a standard on this kind of list, but that’s because it works. If you have a personal budget, you’re much more likely to spend within your means, so get to it! There are many online budget calculators to help you do this.
Quit overspending by Using Cash
If you’re a chronic overspender and you’re looking to rein things in a bit, try going all cash. When you stop using your credit and debit cards, drawing out only a set amount of money each week, the money becomes more real to you, and you’re much less likely to spend with wild abandon. I understand if you’re sceptical, but it really does work.
Check Your Transactions Daily
This might sound like a bit of a chore, but really it need not take you more than a minute or two to review your bank and credit card transactions and doing so will help to ensure that you don’t forget how much you’ve spent and therefore end up spending even more. Ideally, try to review your transactions at the start of the day so that you can adjust your spending for the rest of the day accordingly.
Save 20 Percent
Obviously, if you can afford to save more, do so, but by saving 20 percent towards your biggest financial goals, whether that be an emergency fund, retirement fund, paying off debt or saving to buy a new home, will not feel like too much of a chore, but it will help you to make great gains towards the financial future of your dreams.
Create a Financial Vision Board
If you’re a very visual person, creating a vision board of what you would like your financial future to be – how much money you have in the bank, how few debts you have, the way you use money to your advantage, your dream house – things like that, will help to keep you on the right track, especially if you spend a couple of seconds each morning glancing at it.
Make Your Goals Numbers
When it comes to financial goals, not only should you be setting them regularly, but you should be using hard numbers in the setting of them. Instead of setting a goal to be debt free by 2020 – set a goal of paying $100 off your credit card each month instead, for example. This will make your goals more solid and give you a plan of action that will enable you to see them through with greater ease.
Implement a 20-Day Shopping List
Instead of buying those non-essential purchases whenever you have the impulse to do so, write them down on a list and keep it for 30 days. If, after 30 days you still want to buy that iPad or that Givenchy bag, then go ahead and do so, if not, don’t. This works by giving you more thinking time so that you don’t buy impulsively, and you know what? More often than not, once the 30 days are up, you find yourself not quite as enthusiastic about that purchase anyway.
Think Positively About Your Financial Situation
No matter how dire you think your financial situation is, it does you no favours to think negatively about the situation. When you do that, you are much more likely to send yourself into a negative spiral where you think things can’t get much worse, so you do little to solve your problems. So, think positive, take action and know that you can change your money life for the better if only you try.
Develop an Attitude of Gratitude
If you can find a way to be grateful for the things that you do have, you’ll be much less likely to spend, spend, spend on things you don’t really need, which will certainly help you to meet your financial goals over the years.
Never Cosign Loans
Cosigning loans is never a good idea. It doesn’t matter how close you are to the person who asks or how trustworthy you think they are, there is always a chance they will default and not only will you be left liable for their debts, but you could well end up losing their friendship too.
Start an Emergency Fund
Everyone should have an emergency fund – an ever-growing pot of money that is there should they need to pay an unexpected bill. If you don’t have one, make it a priority to start one now, even if you only throw a few dollars in there each week because it could prevent you from getting into serious debts somewhere down the line.
