10 Tips to Putting the Truth in Personal Finance
1. Set financial goals no matter how small they are. Finance plans will also help you reach goals even faster. Little achievements will keep you motivated. Do not forget to set these goals for both the short term and the long term.
2. Do not take money from anyone unless it is in a holiday card from your grandmother. Same to borrowing money to anyone unless you are ready to not get paid back.
3. There is no time like the present to begin saving or paying down debt. People assume you must have a plan or talk to a financial advisor. All you have to do is a little research online and begin today putting all your spare change into a jar. Start today if you have not already.
4. Stop trying to be a millionaire overnight. We need to stop looking up to people that show off wodges of cash. What we need to do is start by saving $2000 for an emergency fund. Start small and grow your nest egg.
5. If you’re receiving a tax refund, you must be doing something wrong. Remember the money you give to taxes and returned from the IRS is the same thing as loaning money to the biggest bank for a year. Then receiving a check without any interest paid. Now if you miss a payment it is the other way around and you will owe interest to the IRS.
6. Do not put money into an investment unless you are ready to lose it. Investing in the market is the same as going to a gambling casino. A stock can be hot one day and defaulting the next. Be wise with investments and always be prepared to lose it.
7. No investment is going to outperform the simple act of paying off high-interest non-tax-deductible debt. Pay debt down first and foremost. This includes student loans that have fewer rates of interest. These too can cause trouble if they are neglected and you start to let negative compound interest, which eats away at your net worth
8. Spend less than you earn, which may seem like a no brainer but it seems like everyday people are buying things and going on trips that are well over budget. If you can afford it and still have money in the bank then go by all means. Budgeting for travel and things is the best way.
9. A credit score is really an, "I LOVE DEBT" score. Don't play into big finance games or tactics. It is a silly number they made up to show you if you deserve credit or not. Get out of debt and stay out of debt.
10. If you must have a credit card, pay off in full every month. The big myth is that you need to keep a balance to build your credit score. You can build by using a credit card and paying it off every month.
If you need to reinforce an idea or have a helpful personal finance tip please share it below. I want to hear from you. I am sure you will expand other people’s minds from your knowledge. I am not an accountant or a financial advisor. What I have learned is from experience and research.
I will be continuing weekly tips with a different tip list each week. If you would like a list on a certain topic please ask.