Over the years we have accumulated a wealth of knowledge about Money Punch. From the “getting out of debt” success stories we’ve covered, to the dozens of psychological studies we’ve covered to connect better financial health.
Decision Making – Facilitate behavioral change. In light of Financial Literacy, we’ve decided there’s never been a better time to consolidate our top 40 money tips for personal finance into consolidated and readable form.
Table of Contents
- 40 money tips for personal finance
- Make a Financial Calendar
- Check Your Interest Rate Regularly
- Keep Tracking Your Net Worth
- Daily Money Minute
- Allocate at Least 20% of Your Income For Financial Priorities
- Allocate About 20%-30% of Your Income for Lifestyle Spending
- Make a Financial Vision Board
- Set Your Financial Goals
- Adopt a Spending Mantra in Daily Routine
- Make Short-Term Money Goals
- Avoid Toxic Money Thoughts
- Get Your Finances–and Body—in Shape
- Learn How to Enjoy
- Have a Money Buddy
- Make Salary Discussions at Your Current Job About Your Company’s Needs
- Start With Small and Conquer the Big Ones
- Never Cosign a Loan
- Every Student Should Fill Out the FAFSA
- Always Prefer Federal Student Loans Over Private Loans
- Evaluate Purchases by Cost Per Use
- Spend on Experiences, Not Things
- Spend on the Real You—Not the Imaginary You
- Ditch the Overdraft Protection
- Start Saving ASAP
- Not to Cash Out Your Retirement Account Early
- Give & Get Money
- When You Get a Raise, Raise Your Retirement Savings Too
- Get a Secured Credit Card If You Have Bad Credit
- Get Renters Insurance
- Savings As Part of Your Monthly Budget
- Keep Your Savings Away From Your Checking Account
- Open a Savings Account at a Different Bank Than Checking Account
- Direct Deposit is Magic
- Consider Switching to a Credit Union
- 5 Types of Financial Emergencies
- You Can Have Too Many Savings
- Pay Attention to Fees
- Rebalance Your Portfolio Once a Year
- FAQs: Frequently Asked Questions
40 money tips for personal finance
Make a Financial Calendar
If you want to remember to pay your quarterly taxes or submit your credit report regularly, schedule these important financial tasks just like your annual doctor visit or car tune-up. Consider setting a reminder.
Check Your Interest Rate Regularly
In short, paying attention to interest rates will tell you which debt or savings commitments to focus on.
Keep Tracking Your Net Worth
Your net worth — the difference between your assets and liabilities — is a total number that tells you where you are financial. Monitoring can help you track your progress toward your financial goals and alert you when you’re falling behind.
Daily Money Minute
This is a direct post from Alexa von Tobel, Founder and CEO of LearnVest. This 60-second act of hers helps you spot problems right away, track your goal progress, and schedule spending for the rest of the day!
Allocate at Least 20% of Your Income For Financial Priorities
Priorities mean building emergency savings, paying off debt, and building a nest egg for retirement. Does it look like a good percentage? That’s why we love this number.
Allocate About 20%-30% of Your Income for Lifestyle Spending
This includes movies, restaurants, and happy hours. Basically, anything that doesn’t cover the essentials. By sticking to the 30% rule, you can save and splurge at the same time.
Make a Financial Vision Board
You need the motivation to develop better money habits. Creating a vision board can serve as a reminder to stay on track with your financial goals.
Set Your Financial Goals
Use numbers and dates, not just words, to describe what you want your money to accomplish. How much debt do you want to pay off? When do you want to pay it off? How much do you want to save by when?
Adopt a Spending Mantra in Daily Routine
Choose positive phrases like spending rules of thumb. For example, ask yourself, “Is this [insert purchase here] better than next year’s Bali?” or “I only charge items over $30.”
Make Short-Term Money Goals
Studies show that the more distant a goal seems and the more uncertain it is when it will be reached, the more likely you are to give up. Set smaller short-term goals to get results in a shorter period of time. Save some money each week to go on a trip in 6 months.
Avoid Toxic Money Thoughts
Hello, self-fulfilling prophecies! If you upset yourself before you start (“I’ll never pay you back!”), be prepared to fail. So don’t be a fatalist and switch to a more positive mantra.
Get Your Finances–and Body—in Shape
Studies have shown that more exercise leads to higher wages, as you tend to be more productive after working up a sweat. Furthermore, all the habits and discipline that come from running a marathon can help in your financial game.
Learn How to Enjoy
Enjoying is about being grateful for what you have instead of trying to make yourself happy by getting more.
Have a Money Buddy
Studies show that friends with similar qualities can learn good habits from each other – and that goes for your money too! Gather some friends to help you and try to pay off your $35,000 debt in the process.
Negotiate More Than Just Your Salary
Your hours, job title, maternity leave, paternity leave, vacations, and the projects you’re working on are all likely to be negotiated by a prospective employer.
Make Salary Discussions at Your Current Job About Your Company’s Needs
Your employer doesn’t care if you want more money for a bigger home – they care about retaining good employees. When doing so, emphasize the great value you bring to the company.
Start With Small and Conquer the Big Ones
If you’re in debt, research shows that paying off small debts can give you the confidence to tackle big debts. They know how to pay a small balance on a department store card and move to a card with a larger balance. Of course, it’s generally a good idea to get the card with the highest interest rate, but sometimes you pay to get excited.
Never Cosign a Loan
When a borrower – your friend, family member, significant other, or anyone else – defaults on payments, your credit score takes a hit, lenders can track you down for money, and destroy your relationship. Also, if a bank requires a co-signer, the bank won’t trust that person to make the payment.
Every Student Should Fill Out the FAFSA
It’s okay to fill out forms even if you don’t think you’ll get help. This is because 1.3 million students missed Pell scholarships last year. This scholarship does not have to be repaid. – because you didn’t fill out the form.
Always Prefer Federal Student Loans Over Private Loans
Federal loans offer flexible payment terms if your post-graduation job dreams don’t go as planned. Also, federal loans usually have better interest rates. So, think wisely about the loan you take out and try to avoid these other big student loan mistakes.
Evaluate Purchases by Cost Per Use
It may seem more financially responsible to buy a trendy $5 shirt than a plain $30 shirt, but only if you ignore the quality factor! When deciding if buying, kitchen gadgets, or clothing is worth it, consider how often you use or wear them. You can also factor in the cost per hour of the experience.
Spend on Experiences, Not Things
Instead of spending money on expensive tangible items, spending money on shopping such as concerts and picnics in the park is more worth the money, research says.
Spend on the Real You—Not the Imaginary You
It’s easy to fall into the trap of buying for whom you want to be, whether you’re a chef, a professional stylist, or a triathlete.
Ditch the Overdraft Protection
It sounds nice, but it’s actually a way for banks to trick you into spending money and claiming privileges.
Start Saving ASAP
Not next week. Not if you get a raise. Not next year. today. This is because the money you invest in your retirement fund has more time to grow through the power of compound growth.
Not to Cash Out Your Retirement Account Early
Preparing for retirement early can cost you many times over. First of all, you deny all the effort you have ever put into saving and keep that money from investing. Second, there are penalties for withdrawing early, and the penalties are usually pretty severe. Ultimately you will face a tax bill for the money you withdraw. All these factors make an early withdrawal the last resort.
Give & Get Money
A famous 401(k) match is when your employer puts money into your retirement account. However, you can only get this contribution if you contributed first. That’s why they call it a match, right?
When You Get a Raise, Raise Your Retirement Savings Too
Did you know that you used to tell yourself that if you had the money, you would save more? Every time you get a raise, the first thing you should do is increase automatic transfers to your savings and increase your pension contributions. It’s just one step on the checklist to start planning for retirement.
Get a Secured Credit Card If You Have Bad Credit
A secure card helps you build credit like a regular card, but without overspending. And you don’t need good credit to get it!
Get Renters Insurance
Of course, it covers robbery, vandalism, and natural disasters, but it also covers medical expenses for people injured in your home, damage you do to someone else’s home, rent if you need to stay somewhere else for other reasons, etc. can also be covered. From damage to your home and even things stolen from your storeroom. Not bad for about $30 a month!
Savings As Part of Your Monthly Budget
If you wait to put your money away at the end of the month when you always have enough cash on hand, you’ll never run out of money to put away. Instead, build monthly savings into your budget now.
Keep Your Savings Away From Your Checking Account
Here’s the universal truth: When I find money in my checking account, I spend it periodically. An easy way to save money starts with opening a separate savings account. This makes it less likely that you’ll accidentally spend your vacation cash on another late-night online brawl.
Open a Savings Account at a Different Bank Than Checking Account
If you have both accounts at the same bank, you can easily transfer money from your savings account to your checking account easily. So, avoid the problem – and these other money traps.
Direct Deposit is Magic
why do you ask? Because it feels like the money you’re putting into your savings account every month just appears out of nowhere. If the money you set aside to save doesn’t fit in your checking account, you probably won’t miss it.
Consider Switching to a Credit Union
Credit unions aren’t for everyone, but they can be your go-to place for better customer service, discounted credit, and higher interest rates on savings accounts.
5 Types of Financial Emergencies
Access your emergency savings account only if you lose your job, have a medical emergency, your car breaks down, you have an emergency household expense (such as a leaking roof), or you need to go to a funeral. please.
You Can Have Too Many Savings
Rarely, but possible. If you have at least 6 months of savings in your emergency account (9 months if you’re self-employed) and you have enough savings to meet your short-term financial goals, consider investing.
Pay Attention to Fees
Fees you pay for funds, also known as expense ratios, can hurt your bottom line. Even seemingly low things like 1% will cost you in the long run. Our general recommendation is to stick to low-cost index funds.
Rebalance Your Portfolio Once a Year
We are not proponents of market gambling, but we do need to check our brokerage accounts from time to time to make sure our investment allocations are in line with our overall investment goals. are as follows:
FAQs: Frequently Asked Questions
Which loan should be paid off first?
The one with the highest interest rate.
Which savings account should I open?
The one with the best interest rate.
Why does credit card debt give us headaches?
Because of compound interest.