Do you want to start 2019 off on the right foot? Learn more about personal finance and money management. Studies show that most Americans struggle with debt and saving money. This is because most people aren’t taught how to manage their money. Struggle no more, it’s simple to manage your money.
Here are some personal finance tips for 2019:
1) Live below your means
This is the secret that sets apart the rich from the poor. You could be earning a million dollars a year and still have money problems. What better example of this principle than one of the wealthiest people in the world – Warren Buffet. Despite his wealth, Warren Buffet continues to live in a house he bought for $31k in the 1950s.
2) Learn to save money properly
Do you want to start saving money but don’t know how much you should be putting aside? Start by following the 50/30/20 rule. This budgeting tip states that you should set 50% of your earnings towards necessities, like living expenses; 30% for leisure, and the remaining 20% for your financial goals.
3) Record what you earn and how much you spend
In order to understand your financial position, you must know how much money is coming in and how much is going out. Keeping track of your expenses will help you understand where your money is going and help you identify where to curtail frivolous spending.
4) Have big financial goals
Do you want to buy a house, a car, or travel around the world? Maybe you want to pay off that lingering debt? Whatever your goals may be, having one will inspire and motivate you to make smarter financial decisions.
5) Learn how to use your credit card correctly
Using your credit card irresponsibly can cause you a lot of trouble in the future. Therefore, it is essential that you follow certain rules like always paying your balance in full and never missing a payment deadline. This way you will be less stressed and begin making concrete progress towards financial freedom.
6) Build an emergency fund
Unexpected events like accidents or emergency home repairs are a part of life and often happen when you can least afford it. However, your ability to manage these events could save or break you financially. Having some money saved – ideally three to six months of expenses – is essential if you want to avoid financial ruin.
7) Start Investing
Do you think investing is only for rich people? Think again. There are many investment options that don’t require a lot of capital to start. By investing you can save for retirement, grow your money, or maybe even start a new business and quit that 9 to 5 job you hate.
