8 Personal Finance Tips Everyone Needs To Know

personal finance tips

Money is one of the most stressful aspects of our lives. Either we don't make enough of it, or somehow it seems to disappear so quickly. 

Most Americans live paycheck to paycheck, with little to no savings at all. It's a scary place to be, especially considering how volatile our society an economy have been over the past few years. 

Are you hoping to get ahead of the curve and take control of your financial situation? We've put together this list of personal finance tips to help make it easy to save more, spend less, and enjoy greater peace of mind as a result. 

1. Automate Your Savings 

One of the biggest problems that people face today is the inability to save money. Most people intend on saving a portion of their paycheck but never get around to it. 

The best way to actually build up your savings account is to do so automatically. There are a number of apps and third-party banks available today that link with your current bank account. 

One of the most popular methods of automatic savings is by rounding up each transaction. Every time you make a purchase using your debit card, the app will automatically round-up your transaction, depositing the excess into an external account. 

Over the course of a year, you will likely save hundreds of dollars with this personal finance tip. 

2. Automate Investing 

Saving money isn't the only good intention people have. Most people would like to invest but have no idea how to get started. 

On top of that, if they can't save money, then they definitely don't have extra money to invest, either. But just like you can automate your savings goals, you can automate investing into some of the most reliable funds available in the stock market. 

Just link your bank account or debit card to one of the popular, reliable investing apps, and before you know it, you'll be investing and earning interest without even trying. Feel free to check out MNYMSTRS.com if you want to learn more about investing and personal finance.

3. No Impulse Buying 

Struggle with impulse buying? It's one of the main reasons people are stuck living paycheck to paycheck. 

Companies spend millions of dollars on effective advertising, displays, and marketing to master the art of impulse buying. But don't give in 

Instead, make a commitment to yourself. Every time you are tempted to buy something, stop. Write it down on a notecard, in a journal, or on an app on your phone. 

Wait at least a few days, if not, a week or two. If you still want the item, you can make a plan to buy it at the end of the month if you have extra money (after saving and investing). Most of the time, you will find that you do not actually need the item. 

4. Have an Easy Side Hustle 

Starting a side hustle is one of the best ways to make extra money. And there are many easy-to-start opportunities that do not require you to master new skills or spend years building them up. 

You can drive for rideshare companies on your way home from work. You can scavenge local thrift stores and garage sales for items you can flip for a profit. 

Or if you have a particular skill, you can start freelancing on the side. The extra money, even if only $100 or $200 a month, can go a long way to increase your saving and investing goals, ending the paycheck-to-paycheck lifestyle. 

5. Boost Your Credit Score 

Don't have a credit score yet? No problem, here are some easy credit score tips to get started on the right foot. 

Open a credit card with your current bank and begin using it to make your regular purchases. Pay the balance off in full each month and never carry a balance. The interest you have to pay will ruin your finances. 

Wondering how to improve a bad credit score? There are many things you can do to get your score out of the dumps. 

First off, make it a goal to pay off credit card debt, or other high-interest debt. Try reducing your debt to less than 30% of your total credit limit. Make sure, no matter what else happens, that you never miss another payment on any loans. 

If you need additional help, or want to speed up your way to a higher score so you can apply for a mortgage, auto loan, or other loans, you can find a credit repair company to guide you through the process much quicker. 

6. Use Cashback Credit Cards 

Credit cards are one of the easiest ways to start building your credit score. But if you get the right card, you can also earn money back on each one of your purchases. 

All large banks, and many small, local banks offer some type of cashback credit card. Each time you make a purchase, you can earn anywhere from 0.5% to 5% back, every time you use your card. 

7. Audit Your Finances 

Figuring out where your finances are currently at, as well as plugging up some holes that are leaking money every month, is the first step towards a brighter future. Financial planning starts with a clear understanding of your starting point. 

Go through the last few months of bank and credit card statements. Tally up how much you spend each month on common items. Also, look for recurring charges for things you no longer use, like that old gym membership or too many video streaming services. 

8. Rent Out A Spare Room 

Looking for an easy way to earn extra money, and maybe make a new friend? Rent out that extra room in your home or apartment. 

Sure, it's nice to have that extra space. But are you really making the most of that space? You can easily rent it out for some passive income. This is one of the best strategies for younger individuals to utilize, especially if you don't have any kids. 

Personal Finance Tips to Take Charge of Your Future 

These personal finance tips aren't meant to make your life difficult or burdensome. Instead, they are intended to set you free, so you can truly live the life you want. 

If you want to travel, take extended vacations, buy a home, or retire in the future, it all depends on the choices you make every single day. Every day you can go without now, can mean more opportunity in the future. 

Looking for even more tips regarding finances and wealth? Be sure to scope out the Finance section of our blog today for more personal finance tips.

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