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50 Personal Finance Tips That Will Change the Way You Think About Money

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https://www.themuse.com/advice/50-personal-finance-tips-that-will-change-the-way-you-think-about-money

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50 Personal Finance Tips That Will Change the Way You Think About Money
We've certainly amassed a wealth of knowledge over the years covering the money beat-be it the dozens of "I got out of debt" success stories we've featured to the scores of psychological studies we've covered linking better financial decision-making to behavior change.

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3 Financial Basics

  1. Create a Financial Calendar: prevent yourself from forgetting quarterly tax payments and to get credit reports.
  2. Check Your Interest Rate: Pay off loans, open saving accou...

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Budgeting Like a Pro

  • Consider an All-Cash Diet, as limiting yourself to physical currency combats overspending.
  • Set aside 1 minute a day to check on your financial transactions, to ...

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How to Get Money Motivated

How to Get Money Motivated
  • Draft a Financial Vision Board, it motivates and helps you to stay on track with your financial goals.
  • Set specific financial goals stating the reason, the way, numbers a...

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How to Amp Up Your Earning Potential

How to Amp Up Your Earning Potential
  • When negotiating a salary, get the company to name figures first, otherwise you can’t know if you’re lowballing or highballing. 
  • Try to negotiate more than just you...

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How to Keep Debt at Bay

How to Keep Debt at Bay
  • Paying off the little debts can give you confidence to tackle larger ones. It’s recommended to focus on debts with the higher interest rates, but sometimes a moral boost is worth it.

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How to Shop Smart

  • Evaluate purchases by cost per use. Higher cost products may last longer, but go unconsidered because of their initial price.
  • Spend on experiences, not things, as they gi...

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How to Save Right for Retirement

  • Start Saving ASAP. Money you put in your retirement fund now will have more time to grow through compound growth.
  • Avoid cashing out your retirement account early as it pr...

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How To Best Build And Track Your Credit

How To Best Build And Track Your Credit
  • Reviewing your credit report and your credit score regularly can save you money
  • Keep your credit use below 30% of your total available credit, as it can ding ...

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How to Get Properly Insured

  • Get more life insurance on top of your company’s policy, as it is often far too little.
  • Get renters insurance and be covered from robberies, vandalism, natural disasters,...

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How to Prepare for Rainy (Financial) Days

How to Prepare for Rainy (Financial) Days
  • Make savings part of your monthly budget. 
  • Keep your savings out of your checking account, as it may prevent you from spending it.
  • Open a savings acc...

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How to Approach Investing

How to Approach Investing
  • Pay attention to the fees you pay in your funds, also called expense ratios, as they can eat into your returns. It’s generally recommended to stick with low-cost index funds.

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SIMILAR ARTICLES & IDEAS:

The Golden Rules of Personal Finance

  • Spend less money than you earn
  • Always plan for the future: you should always look forward beyond the current month
  • Make your mon...

How much you should save every month

How much you should save every month

The popular 50/30/20 rule states that you should reserve 50 percent of your budget for essentials like rent and food, 30 percent for discretionary spending, and 20 percent for savings.

But ...

Why 20 percent is recommended

Assuming you're in your 20s or 30s and can earn an average investment return of five percent a year, you'll need to save about 20 percent of your income so you can reach financial independence when you're older.

Financial independence means that you can maintain your chosen lifestyle entirely from the interest of your investments and dividends.

The four percent rule

The four percent rule states that you could withdraw four percent of your principal balance every year and live on this indefinitely. That means you need to save 25 times your annual expenses to become financially independent.

The four percent rule is not perfect. There is no risk-free investment that yields that much today. Sudden inflation could also cause a problem.

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Financial planning

 ...is the process which provides you a framework for achieving your life goals in a systematic and planned way by avoiding shocks and surprises.

Try making a budget

  • Create a full inventory of expenses in front of you: Categorize them into fixed and variable; urgent and non-urgent; necessities and luxury; avoidable and unavoidable.
  • You can create a hierarchy of needs and decide which one’s to address first. It’s all about prioritizing. 
  • Accept that you have limited resources and unlimited wants. But you have to manage your resources. The sooner you accept this fact, the better you can control your impulses towards avoidable expenditures.

Maintain a personal balance sheet

It’s a statement wherein you can jot down your assets and liabilities.

  • Pull together your bank statements and other proofs of the liabilities
  • List down your assets like the bank balance, all investments, home value, and value of other assets.
  • Take a sum of all the assets to arrive at the total value of your assets.
  • List down your liabilities the (car loan, home loan, credit card balances etc.)
  • The sum of all the liabilities will show the value of the money you owe.
  • When you subtract the value of liabilities from assets, you get your Net Worth.

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