The Only 10 Personal Finance Tips You’ll Ever Need

Personal Finance Tips

In my opinion, personal finance is pretty straightforward. And what it comes down to for most people is having the discipline and the correct mindset related to money. And applying that consistently, you do not need to be a math whiz. You do not need to be a university graduate. And you do not need to binge-watch finance YouTubers to understand the key concepts and have the correct mindset to save money and get richer.

So in this article, I’m going to share with you as quickly as I can ten personal finance tips that have genuinely changed my life and allowed me to accumulate a good amount of money. Now, I don’t say that to brag, just to provide a little bit of credibility for some context here. I have been working ever since I was 19 years old. I started off making a few thousand dollars per summer all the way up to hundreds of thousands of dollars per year at this current stage of my life.

I do not claim to be a finance expert, but these things are what I keep in the back of my mind. Every single day would have allowed me to accumulate this much wealth at the age of 28. So take that for what you will, but I’m going to share some tips with you. Hopefully, these help you or at least get your mind in the correct place when it comes to thinking about money.

Personal Finance Tip 1: There is an Endless Opportunity

So personal finance tip number one is that there is endless opportunity to make money. Now, I know a lot of people don’t believe this, and a lot of people like to claim that they’re just not in a position where they can do this. For some, that may be true, but for most people reading this article, there is always something extra you can do. If you want to generate more income now, I can recall being in grade eight and selling like little silly band wristband type things to my friends, selling chocolate bars, selling Pokemon cards, anything I could do to make an extra five or $10.

I was doing that. I recall jailbreaking people’s phones and charging them 20 bucks to jailbreak the iPod or the iPhone or whatever it was back in that day. And even though that wasn’t a substantial amount of money, it kind of built this habit into my brain of constantly looking for ways where I could be generating extra income and then potentially taking on that opportunity.

So keep that in the back of your head because you might think that there’s no extra way to do something or that you’re limited with your job or whatever you’re currently doing. There is always something you can do to make more money and you really need to keep that ingrained in the back of your brain.

Personal Finance Tip 2: It’s Not What You Make, It’s What You Keep

All right, so personal finance tip number two, and this is absolutely fundamental. I know many of you have heard this before, but this is that it is not what you make. It is what you keep. Now, this is probably the most important tip on this list because really, at the end of the day, it doesn’t matter if you make $1,000,000, if you spend 950, yes, your life may be a little bit better because you have all of those nice, nice things.

Sorry. But you’ve likely taken on a lot of debt, a lot of liability, a lot of risks. And now the next year, you’re kind of trapped in this bubble of having to make $1,000,000 because you’re spending 950 K year you’re spending whatever the amount is. Personally, I would much rather make $100,000 a year and only spend 25K than making 500 and spend 450.

It really does not matter how much money you make up until a certain point. Obviously, it matters how much you keep and you really need to keep that in the back of your head because even though you make a ton of money what’s the point if you’re trying to build wealth if you’re spending all of it immediately?

Personal Finance Tip 3: If You Can’t Handle $1,000, You Can’t Handle $1,000,000

So personal finance tip number three is that if you cannot handle $1,000, you cannot handle a million. Now really, you can put this on any scale, but the point here is that your ability to handle money does not increase or decrease when that amount of money goes up. If you cannot handle $1,000, if you cannot budget, if you cannot figure out how much money is coming in and out, how much you need, how much you have to save, how much you’re spending in a month, you’re not going to do the same thing with an even larger amount of money.

You hear the saying more money, more problems. Now, that’s not always the case, but I can say personally that my financial situation story has gotten a lot more complicated the more money than I’ve gained. Now, of course, that’s partly due to me and trying to manage it properly and put it in the correct accounts and have the correct investments and not be getting decimated by inflation.

But I’m just saying that if you can’t handle a small amount, don’t think you’re going to build a handle a large amount and start practicing now with whatever money you have, because as soon as you get some more, those skills are going to translate and kind of come over.

Personal Finance Tip 4: What Gets Tracked Gets Improved

Now, tip number four, this really applies to anything in life, but especially money and finances. And this is what gets tracked, gets improved. Now, I think this is pretty obvious, but if you are tracking your finances, that gives you an opportunity to improve them. If you’re not tracking something, there’s just no way to improve it. It’s just like programming. I’m not able to fix a bug if I don’t know what the bug is.

In this case, how do I fix a financial issue if I don’t even know what the problem is? It is extremely important, even at a very basic level, to know exactly how much money is coming in and exactly how much money is coming out and how much you are left with at the end of the month. And then you can very easily see where you can optimize things.

We can cut things out of your budget where maybe you want to spend more money if you think that that’s actually beneficial. For example, Suppose I run a business. I have bookkeepers, I have accountants, and at the end of the year, I’m constantly doing all of these optimizations, seeing where I can cut out spending, seeing where I may want to actually increase the budget because that’s leading to productivity. You need to actually be tracking your stuff because anything that gets tracked does get improved.

Personal Finance Tip 5: Investing & Saving Is A Habit

So personal finance tip number five and I want to put a special emphasis on this, that investing and saving is a habit. This is something that should be automatic for you and that you shouldn’t have to think about. And that should hopefully be done automatically. Right, where you actually have a withdrawal set up every month for money to come out of your account, go into a different account.

You want your saving and investing to be something that is just so instinctual. So ingrained into the back of your brain that it doesn’t matter how much money you have, you’re always going to be doing this. Now, the reason I bring this up is that I see so often people say I’m going to start investing when I have five grand or ten grand or 20 grand or 30 grand, whatever the number is.

Now, unless you’re literally starving and you can’t actually afford to survive like you’re using all of the money that you have, you have no reason to not be able to put away ten bucks a month or 50 bucks a month or a hundred bucks a month. You just need to pick a number that is reasonable and that you can commit to starting building a habit of doing this again.

If you don’t do this when you have $1,000, what makes you think you’re going to do it when you have 10,000? You need to build the habit. You need to ingrain this into the back of your brain. And ideally, by the time you get to the point where your investments and savings are going to be more meaningful, you just do it immediately. You don’t even think about it. It’s just done because you’ve been doing it for so long.

Investing & Saving Is A Habit

Personal Finance Tip 6: Utilize Credit

So tip number six is to utilize credit. There are a ton of benefits of this, but really the main point here is not to be scared to have something like a credit card. For some reason. I know a bunch of people who are terrified of holding a credit card. They don’t want to buy anything from it. They’re scared they’re not going to pay it off, whatever the reason is.

Now, if you genuinely know yourself and you know you can’t handle that, that’s a different scenario. But a lot of people just have this stigma around credit cards and they don’t realize that it’s very beneficial to use one. And in fact, I would buy everything I possibly could on a credit card if I was allowed to do that. If I don’t have to pay cash or something, I’m always going to buy it on a credit card.

It gives you liquidity benefits in emergencies. It’s very good to have a high credit limit if you needed to utilize that and if you know yourself, you know your habits, you know you’re going to pay it off, then there’s absolutely no reason to not want to utilize that. I’ll just leave you on the last point here. The reason why right now at 28 years old, I can buy a house without a cosigner is that I have utilized credit over the last four years.

I have a car loan, I have credit cards, multiple credit cards, I have a line of credit. I had a mortgage previously, but now I’m moving to my new house that was actually secured like I had a cosigner on that, but I wasn’t afraid to have these different things because I knew I could handle the liabilities related to them and I knew I was going to pay them off. And now I’m in a position where I’m very thankful that I did have those specific things and did utilize that credit

Personal Finance Tip 7: Accountants Are Worth The Money

So tip number seven here is that accountants are worth the money. Now take this with a grain of salt. If you have a very simple financial set up, like if you just have a single job, no businesses, anything like that, you can probably do anything related to taxes or what you need an account at for yourself. But in my situation here, I run multiple online businesses. My personal finances are very complicated. Tied with investments and all this type of stuff. And I just need accountants to do this for me.

In fact, I have kind of the main accounting team and then I have a bookkeeper and my bookkeeper will go in every single month and just keep things nice and tidy so that I’m able to get a good picture of kind of my financial position and then have these financial statements prepared at the end of the year. And all of this type of stuff.

I’m just saying this because a lot of people like to skimp on accounting so they don’t want to pay the price. The reality is anything you pay them, they’re probably going to make you back times two. I know this year I paid my accountants probably something like $13,000 and they probably will save me close to $50,000 in taxes. And just the knowledge that they can provide alone is worth a lot of money.

Having an hour-long conversation with an accountant, you can learn a lot more than you would if you went to an hour-long lecture in school. At least from my perspective. So that is tip number seven. Trust your accountants. They’re usually worth the money.

Personal Finance Tip 8: Diversify But don’t Overdo It

So tip number eight here is related to investing and this is to diversify. But to not overdo it. Now, of course, anything I say in this article takes with a grain of salt. I am not a CPA, I’m not a financial advisor. This is just strictly from my perspective. So if you disagree with me, that’s fine. But in my opinion, diversification is very important when it comes to a portfolio.

You want to be invested in different types of investments, different assets. You want to be holding some cash, you want to be holding some low risk investments, some high-risk investments, et cetera. But you don’t want to get to the point where you’re overdoing it and you can’t keep track of everything that you have for me, I have probably eight or nine different investments, and that alone is very difficult to handle, especially when it comes to taxes.

And then there’s all these slips and forms you need to do and if you can’t actually be tracking and managing your investments, it’s probably not worth having them, at least in my perspective. I see some people that have 100 grand and they have a hundred different investments, right? Where they put ten grand or one grand, sorry, in each of them.

Personally, for me, if I had $50000 right now to invest, I’d probably have three or four different investments I’d be holding some cash, I’d be keeping it diversified, but also relatively simple. So it’s easy enough for me to manage and track take that for what you will.

Personal Finance Tip 9: When Starting Out Focus On Earning

Moving on to tip number nine. And this one is that when you were just starting out, you should focus on making money as opposed to investing, try to increase your annual income as fast as you can rather than spending all of your time picking out different investments. Now, I see so many people, especially my age, all this crypto and nifty stuff going on, they spend like countless hours per day, like researching these cryptos in these coins and they’re trying to buy and fees and they’re trying to do all this stuff in the stock market, but they only have five grand to their name.

I’m like Look, that’s great. But even if you hit a home run here, the most you’re going to make is like 20 grand. OK, yeah, that seems like a lot from their perspective. But if you were instead putting your time into developing skills, building a career, and trying to find a good job, you’d probably make way more than that in the longer term, and that’s way less risky.

Then try to kind of gamble on these different stocks and cryptocurrencies. So that’s kind of my point here. When you’re just starting out and you’re not making a lot of money, your time is going to be much better spent trying to earn more money and actually working for that rather than trying to generate passive income from investments.

Personally, for me, I didn’t really get serious worry about my investments until I had a net worth of about $50,000. Some people may say that that is a little bit late, but for me, my main focus was just on trying to earn more money every single year, optimizing my revenue streams, trying to cut back on expenses that I had in the business. And then once I got to a point where I’m like, OK, I actually have a large sum of money, now let’s focus on exactly where I’m going to be putting that and try to optimize that area again.

It doesn’t really make sense to be focusing on the investments when you have such a small amount at that point, I’d say build the habit, focus on earning, and then once you get further on, you can actually kind of optimize all those investments, go in, you know, put them in different areas get a financial advisor, whatever you want to do.

Personal Finance Tip 8: Money Doesn’t Buy Happiness But It Does Buy Freedom

So moving on to point number ten, I’m just going to wrap up this article here with this one, and that is that money cannot buy happiness, but it can buy freedom. Now, for me personally, my entire focus on money has really been around this idea that the more money that I accumulate, the freer I am, the more that I don’t have to listen to other people, and the more that I can get up whenever I want.

I can do whatever I want, and I can essentially pick what I want to do with my life because I have the financial resources to do that. Now, I’m not talking about buying jets or yachts or Ferraris or anything crazy like this. I’m talking about not having to get up and go to a job that I hate because of the fact that I need to make X dollars per month.

Now, that also really has to do with how much money you’re spending, right? If you need to be making $200,000 a year, half a million dollars a year to satisfy your liabilities, that’s probably a pretty negative thing, and you probably don’t have very much freedom. Whereas if you make 50 grand a year, but you have no debt, you have no expenses, all you need to do is maybe eat and pay for like the basic living necessities, you’re probably a lot freer than someone that is in this corporate job that they’re stuck in because they have a $2 million mortgage.

Hopefully you get what I’m saying here, but this has really been why I’ve had this focus on money is trying to achieve this freedom where I’m able to essentially do whatever I want. I control my life no one else does. And again, I don’t have to bow down to someone with a paycheck saying, Hey, you have to do this so that you can continue living this. Let’s say the inflated lifestyle that you’ve created for yourself.

So that’s it, guys. Hope You can find something Interesting or Informative in this article. If You have any queries please just comment in the comment section.

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