Financial Planning for Beginners
Every year, you should try to get into the habit of looking at your personal finances in order to gauge how you are doing. That is why we are sharing our best personal finance tips to help you manage your money better!
You need to be able to make a financial plan, budget your finances and grow your income each month.
If one of your New Year’s Resolutions is to have good money habits and manage money effectively, we hope you enjoy this post!
As an entrepreneur, I never know if I am going to have enough money each month, that is why I created a financial plan for my business.
We want to ensure you have all the personal finance tips available to you in order to help you save more money, pay off any debt you may have as well as make extra money.
Here are a few quick financial tips to help you get started:
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As we outline the personal finance tips for you, we need to first set you are up to date with the tools you need to better manage your money.
These money management tools include better budgeting, setting financial goals and more! If this is your first attempt to analyzing your personal finance, then this post is perfect for you.
Use a Monthly Budget Template to Manage your Finances
In order to better understand how much money you actually have and to really understand your personal finance, you need to put it on paper! This is the only way for you to really know what you are working with.
A budget is a way for you to stay on track financially every single month. It’s so easy to get out of control and that is why using all the money management skills you have is crucial for your success.
A budget will help you acknowledge exactly where your money is going each month which will allow you to make adjustments easily.
You can use any of these free monthly budget templates to start your budget today.
How to Pay Off Debt Fast with Low Income
Before you can pay off debt, you need to know exactly how much debt you have. Make a list of everything you owe including car loans, mortgages, credit cards, the line of credit and anything else you owe.
When calculating your debt, keep in interest rates in mind as you will end up paying these too including any taxes.
From here, you will need to come up with creative ways to pay off debt even with a low income.
One of the best personal finance tips that I can give you is to have a realistic debt repayment plan.
This means saying to yourself as well as planning to pay off all debt within a year! Make your financial planning really realistic otherwise, you will fail.
I really like to use the Digit App to help me with managing my money.
How Can I Get Better At Personal Finance?
They are a few extra steps you need to do in order to get better at personal finance. Creating and starting a budget is just one aspect of getting your finances in order.
Your money habit will impact how well you are able to manage money.
If you only make X amount of money each month but you are spend Y then your account won’t balance. And if you carry debt, then you might even be in more financial trouble than you think.
You definitely want to be aware of how you spend your money and if you are living on a tight budget, get the help you need to help you financially.
Now I would like to get into a few personal finance tips you should use this year in order to change your life and make more money as well as to make better money choices.
These will not help you get rich fast, but it is a good start!
1// Make Extra Payments on your Debts
Now that you have agreed to look into your personal finance and you know how much you owe and you have a solid budget in place, you need to start the repayment plan.
When you receive your credit card statement, be sure to make a little more than what the required minimum payment. Using this step will allow you to pay off your debt way faster than you initially intended.
Don’t go crazy if you are especially struggling month to month.
Just be sure to pay even an extra $10.00 more than what the minimum is. By doing this, you will pay off debt faster and you will have the extra money available to tackle the next debt or put into a savings.
They are a few ways to make extra money to pay off debt:
- Find a few part-time jobs to help pay off debt
- Find out how this lady made $500 by becoming a freelance writer
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- Consider teaching English Online As a Second Language
- Start a $2500 a Month Side Business Flipping Blogs
- Start a Baby Equipment Rental Business
- Learn How to Start A Successful Virtual Assistant Business
- Start a Blog and Make Money from It
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- Make $47, 000 A Year Proofreading Anywhere
- Here are 9 Effective Ways to Make Money On Pinterest This Year
- Use a few of these passive income ideas to make extra money
- Get inspired and listen to the money podcasts to help you
2// Practice Good Money Habits
Learn how to manage money effectively especially if your personal finance is not as great as it should be. By doing so, you will avoid going into debt, you will have a healthy savings account and you will be able to retire much faster.
A few good money habits that come to mind include setting financial goals, frequently checking your credit reports and credit scores.
At least once a year.
By setting financial goals, you will be able to better prepare for any circumstances that may come your way.
This means planning ahead. If you want to purchase a home or a new car, have a financial plan in place for this. Just don’t impulsively purchase big-ticket items if you do not have the funds.
3// Automate Your Savings
Why do you need to automate your finances? This simply means that you should be setting money aside as soon as you get your paycheck.
But it has to be done automatically.
In other words, set up, your main account to automate your savings directly once you get paid.
The money should be moved into your savings immediately. This is also known as “automatic savings transfer”!
How do you set up automatic savings? I like to use a free app like Digit to manage all my automated saving transfers.
Share what you’re saving for and Digit does the rest. It can budget for your next vacation, pay off credit cards, or put money away for a rainy day.
It’s an amazing app that takes care of all my needs and anyone that is really serious about improving their personal finances should use it.
4// Meet with a Financial Advisor
This would not be a good personal finance tips list without me recommending you meet with a financial advisor.
One of the best things I did with my finances was to meet with a personal finance advisor. I was drowning in debt, I had no job and the bills kept piling up.
I just had no idea how I was going to get through and there is no use ignoring your debt and money issues.
A financial advisor will help you with a plan to pay off debt, find extra hidden cash as well as help with savings.
They might even suggest a lifestyle change if things are really bad.
5// Have a no spend Day/Month
If you are really struggling with debt and bills, why not have a no spend day or month.
You will be surprised at how much you actually spend in a day. This is one of the best personal finance tips I can give you to help lessen the load.
Are you a coffee drinker? spending $5.00 a day on coffee adds up really quickly. Decide whether you are going to have a no spend day or a no spend month and stick to this.
Obviously, the essentials such as paying the mortgage, electricity and your usual bills do not apply. I am talking about all the other extras such as:
- Eating out
- Ordering in
Cut out any habit that requires you to spend money. You might just save a couple of extra money.
6// Ask For A Raise At Work
These are all personal finance tips to help change your life and one of this is to ask for raise at work. If you feel that you deserve extra money, sit with your boss and ask for a raise.
When should you ask for a raise at work? I would suggest asking for raise once you have been with a business or job for over a year.
You do not need to wait for a one year mark. If your role has changed at work, you can also renegotiate your salary! This means, you have more workload, you have other duties included or your role is just completely different.
Get paid what you deserve! If you want to get your personal finance in check, you need to get the money in. An additional $100 a month can really help you out if you are in a bind.
7// Choose a Career not Pay my Bills Job
As long as you work in a place that is not deserving, you will not be happy. You want to pick a career that is fulfilling to you in order to succeed and grow.
Do not settle. Getting up every morning, working long hours for little pay is not what you need. They won’t be room for growth as you will simply not like it.
This means no higher pay, just the same old salary.
8// Quit your Day Job
Quit your day job and do what makes you happy! As mentioned earlier, do not stay in a job that is not fulfilling to you.
I would rather you quit your day job and start a small business or find a new career in a field that will be more rewarding. You are more likely to be successful in a job you love than one that is not fulfilling.
We highly suggest having a good plan in place to quit your job and make a change.
9// Invest Your Money Wisely to Make More Money
I think this is one of the best personal finance tip you will ever get.
Investing your money!
Honestly you can make money investing as little as $25.00! And the my recommendation is to go with peer-to-peer lending option.
They are a few options you can choose from but I highly recommend Lending Club!
They will allow you to invest a small amount and you can then collect the interest rate on the return.
It’s definitely a lot more money than if you had it in your own personal savings account.
10// Create An Emergency Fund
An emergency fund is money set aside in case an emergency comes up in the future. We highly suggest that you make a plan to work on an emergency find as life is really unpredictable.
Most money expert that specialize in personal finance will suggest that you look in having an emergency fund.
Practical Money Skills has a great calculator you can use to see how much you need to save.
Save at least 3-6 months worth of funds should anything happen.
While we are on this topic, you should consider creating an emergency binder as well. This binder is a life saver and if I can scream and talk about this all day, I will.
Personal finance and Emergency fund is the best way to ensure you are well organized.
11/ Set Money Goals or Money Saving Goals
You probably have life goals or career goals set in place. But about your money goals or even money saving goals? Have you thought about this?
Since we are discussing and giving out our most recommended personal finance tips, we wanted to encourage you to look into setting money goals for yourself or your family.
What are money goals and how do you go about setting these? Think about where you want to be financially in 5 – 10 or 20 years from now and work on that.
For example, you might want to own a home in 5 years.
Find out the steps you need to take in order to own this new home such as cost of housing, mortgage rates and how you can qualify.
If you need a down payment of $25, 000, make an actionable plan to raise these funds.
12// Plan for Retirement
Whether you are single or you are in a relationship, you need to plan for retirement and ensure your personal finances are in good standing.
I wrote a whole post on how to live frugally and plan for retirement that you must give a read.
One of the best personal finance tips I can give is to have a plan to save for retirement. I mean, I am sure you do not wish to work forever!
And you want good money for when you do not have to do this anymore.
13// Living Cheap to Have More
Okay, so what type of personal finance tips list will this be without me telling how it is??? If you can’t afford it, do not get it. It is that simple!
In order to have money to pay for bills and make ends meet you need to learn tips on living cheap. This could mean a few things:
- Adjusting your food budget – Find ways to save on food
- Shop smartly – Use these Online Shopping Hacks
- Avoid paying for late fees on anything
- Cut cable
- Read this post about personal finance tips and saving money
14// Always Ask For A Discount
When we offer personal finance tips, we want you to take the time to implement some of the strategies and taking the time to get a discount is one way to make good on that.
Spend the day negotiating and asking for discounts when possible.
For example, you can call your phone company and see if they can offer you any special rates as you feel that your telephone bill is too high. You can also call your credit company and negotiate a better interest rate if possible.
Spend the day calling and negotiating rates for things you use, your personal finances will thank you. You never know, you might walk away with a bargain.
We hope these personal finance tips help you manage your money better. If you have other questions or input to add, we would love to hear them below.
If you are looking for extra ways to make money, find them here!
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