In the United States, 33% of adults have no money saved for retirement.
This is a scary thought, because of poor financial decisions, many people will have to work into their older ages.
In order to have money for retirement and emergencies, you must have the following skills.
Continue reading to discover the best tips for personal finance for beginners and habits that could get you into financial trouble.
1. Follow Through on Your Budget
One of the best finance for beginners tips that you will ever encounter, is sticking to a budget.
Without budgeting, it can be difficult to determine where your money is going, which can lead to overspending. You made a budget for a reason and going outside of it can put you in a risky position.
Following your budget will help you reach your short and long term goals when it comes to saving money.
2. Pay off Your Debts
Paying off credit card debt or personal loans quickly can help you get ahead in personal finance.
Interest rates can add thousands of dollars to your debt and have you making payments for much longer than you intended. Making minimum payments can help keep your head above the water, however, it the most expensive way to pay off debts.
Try putting extra money aside and prevent overspending so that interest rates aren’t following you around forever.
3. Spend Less Than You Earn
This personal finance tip may seem simple, but many people struggle with overspending.
Having a job that pays you enough money is extremely important, make sure you are always being paid for your worth. Being underpaid can slow things down and prevent you from saving any money in the future.
Try to get ahead on your bills when you can and avoiding spending more than you get in a paycheck.
4. Have a Savings or Retirement Plan
As stated above, more than a quarter of American adults have $0.00 in their savings account.
Retirement plans like 401(k) are an excellent way to save money and even make it grow! Many businesses will contribute or match the amount that you invest in your account, which can be helpful in the future.
Even if you are already putting money towards a savings or retirement plan, increasing the amount will only help you in the future. It can also get you on the path for retirement much sooner as well!
5. Write Your Debts Down
Writing down the total amounts that you owe each month and keeping careful track of your money are excellent tips.
Many people also write down direct lender loans and student loans, as they often have different interest rates. Having documented information about where your money goes won’t leave you in the dark with an empty wallet.
Knowledge is power, even with money.
Having a book with this information can also allow you to see common spending trends and the areas that you struggle with in finance. Use this information to your benefit and learn!
6. Set an Appointment With Yourself
Setting an annual appointment with yourself may feel a little unnecessary, but can help you move forward and save money for the future.
Each year, 6 months, or however often you decide, you should review your progress, set backs, and changes to your financial situation. This time will allow you to see your short and long term goals and make changes if needed.
Don’t overwhelm yourself all in one sitting, keeping up with finances throughout the year can make this part much easier.
7. Keep Your Wallet at Home for a Day
Having a no spending day. each week can save you a lot of money and get you on track with your personal finance goals.
If you typically buy lunch at work, you can always pack food and save money. Going a day or two without spending any money can save you anywhere from a couple of dollars to hundreds.
Don’t forget to plan ahead if you decide to follow this excellent finance tip. Preparation is key and it is best to not overlook it.
Avoid or Financial Trouble Ahead
There are many things that can go wrong when you are new to tracking your finances.
One of the best money-saving tips is to avoid signing up for multiple credit cards. Having more than 2 cards can hurt your credit, build up interest rates, and keep you in debt for longer.
Another thing to avoid when taking care of your money is missing payments or not paying in full. If you know that you will be short on cash or need more time to make a payment, call your company.
Most places are understanding and will do what they need to make it work for you!
Make Finance for Beginners Personal
Finance for beginners can be intimidating but with proper knowledge, you can follow these money tips like a pro.
If you don’t know much about how to save money, the first step you should start taking is writing down all of your purchases and payments. Being organized can help you stay on track and avoid missing any due dates.
Try to avoid opening up multiple credit cards, even if you are making the minimum payment each month, you will spend a lot more money and feel like you are stuck in debt.
Be sure to keep browsing our blog for the latest tips and trends, that can help you take control of your finances and life.