We've built up a wealth of knowledge about the money beat over the years, from the dozens of success stories of "I Got out of Debt" to the scores of psychological studies. That has been covered that links financial decision-making and behavior change.
Financial Literacy Month has come and gone, so we thought it was the perfect moment to collect our 50 best money tips in one super-helpful, juicy read—these bits of financial wisdom, ranging from the best ways to budget. The best tips to help you maximize your earning potential are as current as the day they were published.
First things first: Some Financial Basics
Create a Financial Calendar
Consider scheduling reminders if you don't believe you can remember to pay your quarterly income taxes or pull your credit report. You could do this in the same manner as you would for an annual car check-up or doctor's visit. Is this a good place for you to start? Our ultimate financial calendar.
Check your interest rate
Q: What loan should you first pay off? A: The highest interest rate. Q: Which savings accounts should you open? A: The one with a high-interest rate. Q: Why are credit card debts so stressful? A: It is due to the compound interest rates. Here's the bottom line: Paying close attention to interest rate trends will help you determine. Which debt or savings commitments should be your focus?
Track your Net Worth
Your net worth (the difference between assets and debt) is the considerable picture number showing you your financial position. Keep an eye on your net worth. It will help you keep track of how far you're progressing towards your financial goals or alert you to any potential problems.
How to budget like an expert
Set a budget and stick to it
This is your starting point for all your other goals. Here is a checklist that will help you to create a fantastic personal budget.
Consider an All-Cash Diet
This will get you out of your rut if spending is a constant habit. Don't believe us. These three people have seen a significant change in their lives thanks to the cash diet. It wasn't as scary for this woman as she thought. This is the truth.
Take a Daily Minute to Make Money
Alexa von Toobel, CEO and founder of LearnVest, is the one who gave this tip. She swears by taking one minute each day to verify her financial transactions. This 60-second action helps identify problems, keep track of goal progress, and set your spending tone throughout the day.
Save at Least 20% of your Income for Financial Priorities
Our priorities are building up emergency savings and paying off debt. We also want to help you build your retirement nest. It seems like a huge percentage. This is why we love it.
Save 30% on your Income to Spend for Lifestyle
This includes happy hours, movies, and restaurants. This means that anything that isn't essentials will be excluded. The 30% rule allows you to both save and indulge.
How to get motivated about Money
Draft a Financial Vision Board
Motivation is essential to make better money decisions. If you create a vision board, it will remind you of your financial goals.
Set financial goals
It is important to use numbers and dates to explain what you want to do with your Money. What are your goals for paying off debt? How much would you like to have saved and when?
Make a habit of spending Money
For how you spend, pick a positive phrase. You might ask, "Is Bali this year better?" or "I only sell items worth $30 or more."
Love Yourself
Yes, it sounds silly, but it works. Ask this author. She paid off $20,000 of her debt after realizing that she had to take control of her finances to value herself.
You can make Bite-Size money goals
One study found that the further away a goal seemed, the less certain about when it will be achieved, the more likely one is to give up. Instead of focusing on significant goals like purchasing a house, set smaller, shorter-term goals. These will bring you faster results, such as saving money each week for six months so that you can go on a trip.
Refrain from Using Toxic Money Thoughts
You are a self-fulfilling prophecy. Do not let your mind get in the way of success. Do not be a fatalist, and instead, use more positive mantras.
Get Your Body and Finances in Shape
One study revealed that exercising leads to higher wages. It is believed that you will be more productive if your heart rate increases after you exercise. Running could help boost your financial game. All the habits and discipline that come with running marathons can be applied to managing your money.
Learn how to enjoy the taste of Savor
You are savoring means appreciating what you already have rather than striving for happiness by buying more.
Money Buddy
According to one study, friends who share similar traits are more likely to learn good money habits. You can gather several friends to meet up for regular money lunches.
How to Maximize Your Earnings
To negotiate a salary, ask the company for figures.
You don't have any way of knowing if you're high-balling it or low-balling your current pay. If you get a potential employer's name first, it will allow you to push them higher.
You can negotiate much more than your salary
The future employer could be interested in your work hours, official title, maternity and paternity leaves, and the vacation time and projects you will work on.
Don't assume that you don't qualify for unemployment
Only half the people who were eligible for unemployment at the height the recession had ended applied. Learn the rules for unemployment.
Have Salary Discussions with Your Current Job about Your Company's Needs
Your employer doesn't care if your salary is higher or lower, but it does care about keeping you happy. In asking for a raise or negotiating your pay, stress the extraordinary value you provide to the company.
How to Reduce Debt
Start small to conquer the larger ones
Research shows that paying down small debts will give you the confidence to tackle more significant debts. For example, you could pay off a smaller balance on a card from a department store before moving onto the larger balance. While we would recommend paying down the highest interest card, it is sometimes worth it to keep your head up.
Do Not Ever Sign a Loan Agreement.
If the borrower--a friend, relative, spouse, or another person--fails to make payments, it can cause credit scores to plummet. The lender could also sue you for the Money. It will endanger your relationship. Banks require a cosigner to guarantee that payments are being made on time. A bonus tip for parents: Before signing a private student loan, verify that your child is eligible for federal loans, grants, and scholarships.
Every student should complete the FAFSA
Even if you aren't sure you will get help, it is worth filling out this form. The reason is that 1.3 Million students did not fill out the form last year and missed out on a Pell Grant, which doesn't have to return!
Always choose federal student loans instead of private loans
Federal loans are flexible payments, so you can get a loan if your job prospects don't pan out. Federal loans are more affordable than private loans. Take care when choosing loans to take out.
Check out Repayment Options for Federal Student Loan Payments if You Have a Hard Time Paying.
Call your lender and inquire about whether they offer income-based, extended, or graduated plans. You can find out more information about these options by clicking here.
You can choose to make mortgage payments below 28% from your monthly income
This is a good guideline to use when determining how much house your budget can afford. You can find out more information about this number here. Enjoy some voyeurism with other couples to find out what they can afford.
How to shop smart
Compare Purchases based on Cost per Use
Although it may seem more sensible to buy a fashionable $5 shirt rather than a basic $30 t-shirt, this is only true if you overlook the quality factor. It is essential to consider how often you'll wear the item or use the tech gadget. It's possible to even factor in the cost per hour for experiences.
Spend on experiences, and not stuff
Your Money will be happier if you spend it on something you enjoy, such as a concert or a picnic at the park. Research shows that this is the case.
Shop Solo
Have you ever had a friend comment, "That's adorable on you!" Every item you try on, you must get it! Spend your socializing time in the park and shop with profound attention.
Spend on the Real You and Not the Imaginary You
It's easy to fall into the trap and buy for the person you want to become: a professional stylist, chef, or triathlete.
Do away with Overdraft protection
Although it sounds appealing, it is a way for banks and other financial institutions to encourage you to spend too much. The bank then charges a fee. Learn more about bank mistakes and overdraft protection.
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