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12 Personal Finance Tips and Tricks to Make You Rich - Swift Salary

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12 Personal Finance Tips and Tricks to Make You Rich - Swift Salary
When you read a lot of finance books & blogs, you come across a ton of different personal finance tips and tricks. This can make personal finance seem like a massive, overwhelming, and complicated topic, but it's really not. It's so simple that I've broken down the personal finance basics into just 12 quick points.

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Side Hustle to Make More Money

You don't have to sacrifice all of your free time to start a side hustle, use the time you’re comfortable with and make a little bit of progress every day. 

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Take Action

Get to working on improving your finances today, not tomorrow. Reading the steps and thinking you’re capable of doing it but postponing it is just an excuse, an unprofitable one....

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Communicate With Your Partner

Talking about your financial goals, and scheduling time once a month to go over your finances together can prevent money from affecting your relationship.

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Start Investing

You should have a savings account, but your money is depreciating if that’s your only investment - average savings don’t yield more than inflation.

Real estate, peer-to-peer lending...

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Know Your Net Worth

Net worth is what would be left if you were to sell everything you own and pay what you owe. If you have a positive net worth, continue working to increase your net worth, but if you have a ...

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Have an Emergency Fund

You can't predict an emergency, but you can prepare for one. The best way to do so is to set up an emergency fund of 3-6 months of living expenses.

Common financial emergencies ...

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Good Debt

Good Debt

Is debt acquired to purchase something that is going to benefit you financially in the future, usually with low interest. That means it's either going to generate income or allow y...

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Stay Out of Bad Debt

That’s the debt that's acquired through purchasing something that depreciates, something that's going to lose value and generate zero revenue.

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Credit Card's Danger

Credit Card's Danger

Credit card usage can lead to debt and the debt grows itself while unpaid. However, used responsibly, it's a good way to start building credit. 

Most credit cards also have other ...

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Set Financial Goals

A clear set of goals can keep you motivated and help you plan to reach it faster.

Have different goals for what you want to achieve in the next 3-months, 1 year and 5 years. Thi...

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Invest on Your Savings First

Invest on Your Savings First

Act as if your savings account is a bill to pay, so you’re less likely to spend it. Automate savings transfers if possible.

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Break Down Your Income & Expenses

Take note of all your expenses, subtract them from your income and find out how much you have left per day, so you have a better idea how long it will take to reach your goals.

...

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Learn to Budget

Create a plan for your money so you know where it's going every month.

A popular and effective way to budget is with the 50/30/20 rule, where 50% of your income goes towards nec...

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Spend Less Than You Earn

In order to do this, you need to track your spending by either writing your purchases down or using a free personal finance app.

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SIMILAR ARTICLES & IDEAS:

Salary is not the same as savings

Having a high salary does not automatically make you rich; having a low salary does not automatically make you poor.

Your net worth is more important than how much money you make. It’s amazin...

Saving is more important than investing

Pay yourself first is such simple advice, but so few people do this. 

The best investment decision you can make is setting a high savings rate because it gives you a huge margin of safety in life.

Live below your means...

....not within your means. 

The only way to get ahead financially is to stay behind your own earnings power.

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Tony Robbins

It’s not about your resources, it’s about your resourcefulness.”

Tony Robbins

Be Creative To Afford What You Want

By following the conventional path of "school to loan to university to work" you risk running into serious debt. Being creative is a potential way to lessen or eliminate that.

Maybe finding a different and cheaper way of doing the same thing, doing a yard sale or getting a side job… Put your mind to it and you may find ways to get a financial boost. 

The Problem With Mutual Funds

When you buy mutual funds, you are charged a purchase fee upfront. This is a one-time payment to the fund management institution. Annually, you will be charged with a percentage of management fees, commonly known as “expense ratio”, which can be expensive.

Beware when advisors at your bank recommend mutual funds to buy. They might be earning a sales commission.

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Keep everything as simple as possible

The more credit cards you have, the more chances you have for identity theft and the more chances you have to miss a payment. The more investment accounts you have, the less attention you can give ...

Don’t ever let your “future self”...

...take care of your current situation.

Your future self might have more income, but it’s also fairly likely that your future self might have less income and you’ll find yourself in a really bad situation. 

Even if your future self is doing well, there are probably going to be other big expenses that you’ll want to deal with at that time, like buying a house.

Focus on...

  • Building an emergency fund: set up an automatic weekly or monthly transfer from your checking account to your savings, then leave the savings alone until an emergency appears.
  • Eliminating high-interest debt: Set up a simple debt repayment plan by organizing your debts by interest rate, then attempt to make a double payment on whatever debt has the highest interest rate.
  • Saving for retirement: It will actually end up being a much smaller burden than you expect,  lifted up by the pleasure of knowing that you’re securing your retirement.

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