Personal finance is a part of life that can cause immense pressure and stress, and many people have found the pandemic to wreak havoc with already tight budgets. For those with chronic illness who’ve perhaps had to go part time or have lost their jobs altogether, finances may have been difficult for quite some time already.
Whether you’re employed, unemployed, self-employed or retired, it’s never too late to see what changes you might be able to make. This sponsored guest post outlines 7 particularly useful tips and tricks that you might want to consider for giving your finances a spring clean and getting on top of your money.
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Getting A Grip On Personal Finance
Is it time to give your finances a makeover?
Whether it is a new year or a new season, the public generally celebrates these new beginnings by shaking up our diets and lifestyle routines, looking for new employment or learning new skills. But why not give your wallet a new lease on life?
You owe it to your hard-earned money to finally get a handle on your spending, sock away some cash for the future if you can, and invigorate your financial plans with a new account or application.
So, what are some of the best measures you should employ moving forward? We have compiled a guide of the seven best personal finance tips that everyone should know:
1. Start A Budget
Not possessing a budget is like trying to put together hundreds of tiny pieces when you don’t know what the completed jigsaw is supposed to look like. You need a rough idea of where you’re going, where you’re at, and what you’re aiming for. For many of us, a weekly or monthly budget can be vital. It helps you better organize your dollars and cents (or pounds and pennies), gives you a snapshot of your financial situation, and ensures you meet your pecuniary goals. Without a budget, it can be hard to not only save, but also to rein in your spending.
2. Monitor Your Spending
Speaking of spending… have you run a check on your spending? If not, it might be time to start becoming acquainted with how you distribute your hard-earned money, whether you’re in employment, self-employment or on government assistance.
A standard pen-and-paper or computer spreadsheet budget works, but you can also utilize one of the many mobile applications to gain a picture of where your money is going.
Here are a few of the most popular apps today that can help you effectively monitor your spending:
- PocketGuard: A free budget app that connects your checking, credit, and savings accounts.
- Mint: An app that tracks and categorizes your transactions.
- EveryDollar: A budget app that monitors your spending and helps you plan a budget for buying goods and services.
- Honeydue: Do you want to make finance a goal with your spouse? Honeydue is a budget app with your partner that condenses everything into one spot, including bank accounts, loans, and investments.
There are plenty more, but this gives you an idea of what is out there that can benefit your money.
3. Apply For A Credit Report
How much has your credit taken a hit due to inaccurate reporting or maybe even fraud on your credit report?
You may not know because you have not seen your credit report in many years. It could be a good time to apply for a report to see what is on there, what is incorrect, and whether any identity theft has occurred.
Moreover, knowing what is on your credit report can help you take steps to rectify the situation, enhance your score, and access better financial products and terms moving forward.
4. Automate Your Savings
In this economy, it is not easy to save, especially when money is tight. That said, no matter what your situation is, paying yourself first and putting money away for the winter is critical if you can manage to do it, and every little helps. Whether it is $5, $25 or $100, its important to set aside whatever you can as regularly as possible for your retirement, savings nest or an unforeseen event.
But how can you develop the discipline to do so? Well, thankfully even the most discipline-deficient of us can consistently save with an automated savings plan (ASP). This is achieved by enrolling in a program that automatically transfers money from your checking account to your savings account weekly, bi-weekly, or monthly. Just set it, forget it, and watch the savings grow!
5. Automate Bill Payments
Are late payments adding another unnecessary cost to your monthly spending plans? Try automating your bill payments like you would for your savings accounts. By saving goodbye to late payments and mounting interest, you will notice the instant savings.
6. Get A New Account
A new year could be an excellent time to try out new accounts that can make your money work harder for you. The finance industry has come up with so many innovative products and services, especially in the last decade. It makes great financial sense to explore options beyond your conventional checking or savings account at your brick-and-mortar financial institutions.
There are lots of accounts and services out there, so it’s worth investigating and comparing them to what you currently have. Many people stick with the same provider even with sky-high fees and minimal interest on savings because of the hassle to change, but switching providers is becoming more expedient and stress-free in recent times.
7. Opt For Credit Cards with Rewards
Credit cards can be useful or dangerous, but ff you have great financial discipline then they can be a great way to have your money work for you since you can get money back by spending.
If you can wisely manage your credit card usage, opt for cards that offer cash-back rewards for all your transactions. The percentages are minimal – typically starting at 0.5 percent – but these small changes over time can add up.
The best advice is usually to pay back what you owe as soon as you can, paying off the balance in full if possible. For those in debt and with a very tight budget, this isn’t always doable. If debt, loans and credit cards are necessary, then always do your research first. Credit cards can vary considerably in terms of interest rates, fees, 0% balance transfer deals and rewards, so always read the small print and shop around for a deal that would best suit you.
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Unfortunately times are tough and savings aren’t possible for everyone. However, if you are able to get together a comfortable little nest egg that build gradually over time, you will realize just how much easier life can be for you and your family. While you might not become the next Elon Musk or Warren Buffett, it’s always nice to know that you have funds stashed somewhere to cover a replacement stove, your medical bills, your child’s extra-curricular classes, or to enjoy your retirement years in comfort! Your road to financial freedom begins with a budget, smart saving and investment habits that will help build a strong foundation for your future.
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[ This is a sponsored guest post & as such the opinions are those of the author ]
11 comments
Monitor your spending is excellent advice. Some folks have no idea where their money is going. Like eating out all the time. That costs a fortune. I so remember.
Have a fabulous day, Caz. Big hug. ♥
Both my credit card and grocery store loyalty card give me points I can use for Amazon gift cards. It’s like free money!
A terrific list…
Those are great tips. Finance can be such an intimidating subject that rarely discussed in a honest way. I like the credit cards rewards points and I used it for travel (when I used to travel…). I also keep an excel sheet to monitor my expenses. But still, I have so many little things that I don’t keep track off.
Kudos on giving lotsa people sage – and easily followed – advice.
Caz, my daughter has always ‘paid herself first’ as she (and you) put it. As a pre-school teacher she hasn’t suffered because of covid; her job has been ongoing throughout. In our usual brunch meet (Veronica works only four days per week) she said she was quite amazed by her bank balance, which has reached a very tidy amount. Normally, she and her husband would have spent those savings on a yearly holiday. Not this past year or so. Covid put a stop to that. And yet there is that silver lining of savings.
These are great tips!! Last year I got a credit card that gives cash back and it really helped build my credit. Plus I had extra cash to use for Christmas!
A good post with plenty of great tips.
Lulu: “Our approach to personal finance is, make the humans pay for everything.”
Chaplin: “It works out pretty well for us!”
What an awesome post, Caz! I fully believe that financial stress is hands down one of the worst stressors to have. It affects every aspect of our lives – our health, our relationships, our freedom, and so much more! If people will read your post and take it to heart, many lives could be changed for the good. Plus, teaching those good habits to children (if any are present) can only help future generations be free in their finances.
I had no idea those budgeting apps existed and will definitely be checking those out! What I discovered over the years as I became more mindful was just how much we do spend on small things that add up over time. A $6 coffee may not seem like a ‘big deal,’ but when you track it over a year…yikes! It’s much easier to stay ahead of the game then it is to try and play catch up later once there’s already a problem!
Automating savings and bill pay is brilliant. We do both in our home and it has saved us a lot of headaches! I highly recommend everyone try those services.
We also LOVE reward-based credit cards. The key is 100% to be aware of what you can or can’t pay off in full that month. We charge what we know we can afford to pay, with rare exceptions. When possible, we try to pay the balance in full before the interest kicks in. This saves a lot! I can’t tell you how many items have been purchased with reward points only. If we’re going to spend anyhow, why not get something in return for the future? 🙂
An awesome sponsored guest post from Finch, my friend. I’d say Invisibly Me was the perfect choice for a partnership. Sending my love to you now & always. You are appreciated! ♥
This is a great post with really great suggestions for people who are wanting to learn more about money management. Thank you for sharing your tips.
Lauren