The way you need to be physically and mentally fit, similarly your personal finance and its fitness is also very vital and important to you. And once you do it, there’s a big payoff. You will spend your months and years happily without hitches.
Maybe saving for your retirement, paying down debt, sticking to a personal budget, might not be in your priorities but they can be very important for you for the upcoming and more complex projects down the line.
Below are 17 simple personal finance tips you can use in your routine to help you in meeting your personal finance goals.
1.Create a financial Calendar
To not forget and to stick to your important financial tasks, create a financial calendar with all the important financial dates and deadlines. These may include your date for paying utility bills, premiums, EMI’s of your loans, etc. Download a reminder app on your mobile phone.
2.Create a budget plan
A practical personal budget will help you in reaching your financial goals. There are a lot of templates available online to help you get started. If you don’t have time for all this or you are tech-savvy, use a good personal finance app that can do the trick.
3.Know your interest rates
Stay aware of your interest rates on loans and credit cards. This will help you in deciding which one you should pay off first. If you find that your interest rates are on a higher side, you may consider refinancing or balance transfer plans for your loans.
4.Measure your Financial progress
Calculate your net worth by adding up everything you own (e.g., the value of your home and your cash) and then subtract the sum of all of your debts (e.g., mortgage, student or car loans, and credit cards). Knowing and monitoring your net worth would help you in measuring the financial progress you are making.
5.Always check for coupon codes
Whether you are shopping online or in a store, always check to see if the store is offering a coupon code.
6.Use a cash-only or debit card diet
Actually, people are willing to spend much more when they use a credit card. If you think this is you, start using cash or your debit card only.
7.Take out a minute daily to check your finances
It will hardly take 2 minutes to do a quick check of your financial transactions. This daily habit will help you figure out any issues immediately. Will keep you on track with your budget goals as well as your spending for the rest of the day.
8.Know and Implement the 50/30/20 rule
Know the 50/30/20 rule. 50% towards needs (groceries, utilities, etc.), 30% towards wants, and 20% towards savings and repayment of debts.
9.Be more social
Instead of going out to an expensive restaurant for dinner, extend an invite to your friends to come over and have dinner.
10.Set short-term goals
The key to avoiding the situation which comes with bigger goals, like saving for a home, it’s better to work on some short-term savings goals.
11.Increase your skill set
You are in charge of the amount of money you make. If you want to go ahead, build on your skill set and knowledge base to achieve higher pay. Try online courses.
12.Create a “wait and see” list
If you come across something you really want to buy, note it down or take a picture of it. Wait for a few days or try even for a few weeks and check if the same want is still there. There are chances that your desire for that item has faded away, and so the money can be used on something else more significant.
13.Ignore sales promotion
Whenever you confront with tempting sales promotion methods like “buy one, get one 50% off.”, think about whether you need the item and what value it will bring to you. Chances are you will end up putting it back.
14.Do not keep credit cards in your wallet
Credit cards easily lead to overspending. Storing your credit cards at home will help you keep at bay from overspending.
15.Invest in experiences and not things
Experiences like education can have a clear ROI in the long run. Consider putting your money towards these and not towards material things that bring you immediate but not lasting gratification.
16.Research well for your Insurance options
Life insurance and medical insurance are fundamentals to a long-term financial plan. Accidents may happen with anyone, and you want to make sure your loved ones are protected.
17.Increment should lead to a rise in savings
Any increase in your salary or income should lead to an increase in your contribution towards your savings and your retirement accounts.