The Best Financial Advice
The best financial advice I have received is actually a simple list, of 8 pieces that I have gathered from many different people. These people include; my family members, researchers, and other bloggers/authors. While some I have found from trial and error in my own financial endeavors.
- Pay yourself first
Save 10% of your pay check and pay yourself. It is always important to save money for an emergency. When I first started, I took 10% of my pay and putting it into a savings account. While doing this, I was able to save enough to cover my necessary bills for 3 months. I started to take that 10% and put it towards my smallest bill with the highest interest rate. for me this is my car payment.
*Side Note* If an emergency happens to pop up, I take from my emergency account first (that’s what it is there for!) with next pay the 10% goes right back towards my savings until I reach the same amount. I would go back to paying extra on my car once the savings fund is back to my goal.
- Make the goal winnable
Set realistic goals and make them achievable, it helps to add a reward at the end. These rewards can be a reasonable dinner out at your favorite restaurant. Or even a favorite home-cooked meal. The month after I saved my goal for my emergency fund, I took the 10% and bought an outfit at a local thrift store (about $15).Then, with the money left over, I put it towards my car payment.
- Sweat the big stuff
Most people try to scrape pennies from the smaller budget items. I find it It is easier and more efficient to focus on the larger items like the grocery bill. I tend to cut my grocery bill by shopping the sales and cooking with what I have rather than going to the store to buy one item. We all know you will leave with more than one item!!! At least I would 🙂
- Budget not working, try a spending plan
Starting a budget can be a struggle. Some people find that starting a spending plan before a budget puts them in the right state of mind and helps break things down.
- Never too poor to give
Giving doesn’t have to be about money. Most budgets start with cutting things like entertainment. This leaves extra time where being bored might cause you to want to spend money. Instead go volunteer at a shelter or even a church event. Personally, I volunteer at a local retirement home. I play games and read books to the elderly and have made great relationships.
- Never choose a job for its money
Having a job you hate, can cause a big problem for you financially. You will be less inclined to work hard which leads to less raises, and no promotions. I use my yearly pay raises to increase the money I can put towards paying off debt. I pretend like the raise never happened and put that money towards my debt.
Let’s say you make $50,000 and get a 2% increase at your annual review. This gives you $1,000 a year to put towards your debt. Those extra payments can cause a drastic decrease to you interest rates, making you pay less in the long run.
*Side Note*I always start by paying loans with the lowest amount and highest interest rate.
7. The more you own the more things own you
Owning a lot of extra gadgets can surely cost you. The more you own the more you pay for upkeep. if you are truly serious about being financially stable and struggling to find where to save money look at your bills and cut out the unnecessary ones. Do you need cable or can you live with a simple streaming device? Do you really need 5 TV’s in the house, or can you survive with one? This would save big time on electricity. Do you need two cars, or is it possible to only have one? Can you carpool or take public transportation? This financial advice actually ties into my last piece, #8!
8. Spend more ONCE on quality for needs and skip the cheap junk “wants.”
There will be things you cannot live without and that can actually save you money! Only buy quality products. Don’t think because it’s cheap it’s a good deal. You could be buying multiple items in the long run where as if you bought one quality item it could last a long time. When things go on sale is usually when I buy my quality items. I never pay full price.
My example here, is DIY laundry cleaner. People report that while their clothes are clean they tend to show “wear” faster. This is because the homemade products do not have the quality store bought items do. Laundry softener is designed to wrap around your clothing threads and strengthen them, leaving them strong and new looking. Instead of making it yourself, look for sales and coupons on quality items.
I hope you have learned a lot from this financial advice and that you are able to take from this list as I have. Please comment below with your best financial advice.
& if you have enjoyed this post, head on over to see My Favorite Financial Quotes.