6 Personal Finance Tips for Financial Success
Does complete financial independence still seem like a challenging goal for you to accomplish? If so, don’t worry. In this post, I will share six tips to help you get started on your journey to a healthier financial life. We all can reach financial greatness with a little bit of planning, consistency, and execution. Below are the six things you can do to start improving your finances today.
1. Spend less than you earn
I know; it sounds obvious. But in reality, this can be challenging. Without proper financial discipline, we will continue to overspend and live beyond our means. Spending less than you make is gaining control over impulsive spending habits. When I started my credit card debt-free journey, learning to tell myself no when spending money on things I didn’t need was not easy. However, the more I controlled my spending, the more disciplined I became.
2. Create a Budget
Monthly budgeting and keeping track of my expenses are the two things that helped me the most on my journey. A budget builds a foundation for managing your income and your expenses. Tracking where your money is going can help you set a spending goal. Creating a budget is simple and can be done in three steps.
- Figure out how much you’re spending.
- Determine your financial goals and the steps to take to get there.
- Build and stick to a budget.
To help you get started, I have created printable monthly budget trackers; subscribe to receive yours today. When visiting our shop, you can find more digital and printable budgeting templates.
3. Track and Review your Expenses
Now that you have a monthly budget in place, it is important always to keep track of your weekly or monthly expenses. Tracking my expenses helps me realize when I am overspending and when to eliminate unnecessary expenses. Remember that staying on top of your spending gives you more control over your finances. The goal is to control your money, not your money controlling you.
4. Follow a Budgeting Rule
Budgeting rules can be a great way to help you get started on your budgeting journey. One of my favorite rules is the 70/30. How does it work? It’s simple: Take your monthly income and divide 70% of it into your monthly expenses. The remaining 30% is divided into your investments, savings, tithing/donations, or paying off debt. Depending on your financial situation and your debt, you may not be able to save a high percentage of your income each month. However, saving 10% is much better than saving nothing at all. Tithing or giving is very important when you want to achieve financial success, whether it is tithing to your local, giving to charity, or volunteering your time.
5. Invest
Now that your monthly budgets and savings are under control, it’s time to start investing. Investing can be intimidating if you don’t know what to do or where to start. Doing the proper research and applying the knowledge will help make things easier to understand. Be sure to Look into retirement accounts, investing in stocks and crypto, as well as mutual funds and ETFs. Investing your money is necessary and crucial to achieving financial success, so don’t delay it; the sooner you start, the better!
6. Start Making More Money
Once you get your finances under control and become a pro at managing your money, you will get the desire to make more money. You will want more money to save, invest, and pay off your debt. Although it is not impossible, it cannot be easy for most of us to achieve true financial success through our jobs. This is why I strongly encourage you to start a side hustle or your own business. You can start a side hustle at something you are already good at it or by learning a new skill. Maybe you already have a business idea and are hesitant to get started; I am here to encourage you to do it! Accomplishing your dream is not easy, but it is also not impossible! If being your own boss is your version of achieving financial success, then starting your own business is essential.
Now that you have read these six tips, I want you to believe that you are capable and deserving of accomplishing financial greatness! Having a positive and rich mindset on this journey is important; otherwise, you won’t make much progress. When you feel like giving up or experiencing self-doubt, remember that you are destined for greatness! If you found this blog post helpful, be sure to share it with someone you believe will help.
Below are two books that can help you get started on your journey:
