A lot of people think I'm crazy…. that is, crazy obsessed with personal finance. I'm guilty of that and I'll say it loud.
Over the past 34 years of my life, I have been fortunate to have been surrounded by people who helped me bring out the best in me.
My family and I have experienced ups and down when it comes to finances.
My dad used to earn less than a dollar a day to feed a family of 11. The thing with that is a dollar was not enough. But we survived.
Luckily, we survived, paid off the debt, and saved a ton of Money in the process. We paid off $40K and saved at least 200K in under 4 years while living on one income.
I call these lessons the best secret free financial lessons I've learned in my life even though these secret lessons are those tips and tricks that people overlooked and don't put into action.
Best Personal Financial Planning Tips
I think I am more than lucky to have learned some of the best financial lessons that one could learn. Here are some of the best personal Financial Planning Tips I have always followed in my life.
1. Use banks that will help you make money.
Banks make a lot of money through fees. Shocker!!! One solution is to find banks that'll make you money.
Nowadays, innovative banks offer unbeatable products and services. One that's widely popular is CIT Bank – a 5 out of 5 Bankrate Star Rating.
CIT Bank offers a High Yield Savings Account with 1.55% APY, which is 21 times higher than the 0.06% the big banks pay.
On a $10,000, you'll get $155 from CIT but only $20 from some banks. It has no monthly service fee, you can withdraw money, have an ATM card, and still get that high APR, too. Double win it is.
I ditched my two bank accounts for CIT Bank. Now, I make over $1,550 a year on interest – enough for year's worth of groceries.
As with the interest money, you can use it to pay other expenses – saving your other money from being spent.
Click here to grow your money with CIT Bank.
2. Remember time is gold; Make the most out of it.
When you have down time and have nothing else to do, what do you do? Do you just binge watch?
I believe time is gold. That's why, when I have free time, I use it to make money on the side. #sidehustle
For me, the more money I make and save now, the less my wife and I need to work on later in life. Or we don't have to work later in life at all.
Some like to sell dress, art, etc. I admit I am 100% introvert. I am great when I speak my mind through words. That's why I chose blogging. If you are like me, then, this is perfect for you.
Blogging has made me $180,000+ since I started two years ago without directly talking or selling to anybody.
I'm fortunate to make at least $20,000/mo on blogging while spending 5 hours/mo on it.
While making a lot of money takes a few months, everything starts with creating a blog (no experience need) – you can do that in 15 minutes or less. That's just like any other side hustles out there.
The best part yet is that starting one only costs $2.95/mo – less than a cup of coffee.
Click to start blogging in 15 minutes for $2.95/mo.
Note: Starting a blog can be overwhelming. To help you start smoothly and get your blogging on the right path, I'm giving away the freebies below, which regularly cost over $100 for FREE. See below.
3. Make sure your investments are working for you.
Not all 401k investments and their fees aren't created equal.
With so many options to choose from, knowing whether your goals and investments are aligned is a challenge. Not knowing if they work for you is a bigger problem.
Last year, my friend introduced me to Blooom. I thought I knew my 401K very well being the investment-nerd that I am. I was wrong.
Blooom analyzes your 401k for FREE. It spost hidden fees, tells you if your portfolio is too aggressive, and finds out how much you could be missing out on by DIY-ing your 401k.
A lot of its clients cut their hidden investment fees by 46%. Blooom clients' collective lifetime fees saved is over $776,465,300 and counting.
Click here to get your FREE analysis with Bloom.
4. Invest now even for a couple of cents.
I learned that small, consistent investments now always trumps one big investment 10 years from now.
If you invest $100/mo now over 10 years at 15% return, you'd have $24,770 in 10 years. You would've doubled your investment due to interest earned. That's better than investing one $12K 10 years from now.
If you're uncomfortable with investing, you can start ‘cents' investing using Acorns to test the water. You also get $5 bonus if you sign up using my link.
Acorns lets you invest as little as $0.01 and helps you earn big cash back, too. It rounds up your purchases and invests your money when $5 is reached across 7,000 stocks and bonds while reducing risk.
I'm at $2,332 now, and it all started with investing cents 7 months ago. My rate of return? It's 12.5% return without me lifting a single finger.
Sign up and start with Acorns here and get your $5 sign-up bonus.
5. Negotiate to save money.
Almost everything can be negotiated. Period.
Try to negotiate as much as possible. The worse thing somebody can tell is ‘No.'
I recently found a simple, FREE personal finance app called Trim that I think is a great solution for those people who want to cut their expenses or negotiated them.
Once your bank account is linked, Trim will analyze your spending, find subscriptions to cancel, negotiate your bills, etc.
Trim cut our on-contract Verizon phone bill by $16.75/mo. That's over $201/year. (see my bill's images below). Last month, subscribers saved over $1,000,000 with Trim.
If you're at the end of your rope, but still need to cut your expenses, Trim app is a must.
Click here now to start using Trim.
6. Don’t spend what you don’t have.
There are so many ways to get money that is not your own. #useloansorcreditcards
One of the best lessons I learned is if you cannot pay with cash, then, you shouldn'tt buy that thing at all.
If you use credit cards or other debt instruments, pay them in full and on time. Plus, you should also use these debts when you get more rewards using them than when you use your cash.
Before you use these instruments though, I recommend you check your credit score for FREE with Credit Sesame.
It's a FREE service that allows you to see your credit score without making a direct hard credit inquiry against your credit.
It'll also tell you which debt instruments you're likely to be approved for. Thus, helping you avoid getting rejected by these debt issuers.
Create an account with Credit Sesame.
7. Stop paying off those credit card fees (the unheard way).
There are the interest, penalty, annual fees, and others that come with credit card debt. #mountainofdebt
Credit card debt is like a disease that doesn't go away easily.
For those who are ready to try a simple and practical way to pay down card debt Tally, an iOS app which is free to download*, is a game changer.
Tally analyzes your credit cards and credit history to ensure it's a fit for you. Consumers typically need a FICO score of 660+ to qualify.
If you qualify, you'll receive a Tally line of credit to pay off your cards with high APR balances – saving you significant amounts of cash by minimizing interest costs and eliminating all fees.
Tally takes all the burden from you since it makes the right payment to the right card at the right time – no more late fees.
Click here to start using Tally – your credit card debt concierge.
* 7.9% – 19.9% APR per year depending on credit. Similar to credit card APRs, it will vary with the market based on the Prime Rate. (This information is accurate as of July 2018.) To learn more about Tally click here.
7. Understand your money.
It's difficult to manage your finances or money when you don't know where to even begin. Don't know where your money is going = Chaos.
But how do you analyze and understand your money?
One way to do that is to always have and be on a working, realistic budget.
Are you any of these people?:
- Busy and don’t have time to budget but wants to;
- Doesn't know where to begin and in need of help, and/or;
- Has done everything but to no avail or combination of any of these types of people.
If yes, one great option is to use a personal finance tool called Spentapp. Plus, get a $10 sign-in bonus.
Once a bank/credit card account is linked, Spentapp immediately analyzes your expenses, finds money mistakes and makes financial recommendations you can use. All those without you lifting a finger.
With the help of our budget printables and Spentapp, we managed to live off well under $31,000/year. See image (below) a Spentapp cash back proof.
Click here to get Spentapp for FREE. Sign up thru my link and you'll get an extra $10 bonus.
Note: Spentapp can also help you earn cash back up to 45% for doing things you normally do. This and its ability to help you pinpoint those money suckers makes Spentapp a handy tool to get back on a financial track.
Related: Personal Budget Categories to Start Your Budget
9. Choose the “harder” right than the “easier” wrong.
Often in life, we choose the easier routes because they’re more convenient, they’re less of a hassle, among others. But at times, these choices are not the right ones to make.
For example, when a business is failing and the only solution is to cut down on people, it’s hard to make the call of letting people go. It’s hard, but it’s definitely the right thing to do.
I always tell people to invest early. The truth is, it’s hard to invest money when you are just starting out and have a lot of bills to pay. Investing money early on is the “harder” right and not investing early is somewhat but not entirely the “easier” wrong.
Read: 8 Things You Need To Stop Wasting Money On
10. Be happy with what you have and don’t have.
The next on my list of best Personal Financial Planning tips is being happy with what you have and don't have.
In this day and age, it is so easy to want some more. It is so easy to want what other people have. My wife and I tell ourselves that we don't need to stay in touch with what is current. For that reason, we tell ourselves we don't need to buy gadgets, new services, new products, etc.
What my father and mother taught me was to be content with what I have and don’t have. I believe in what they said.
Time changes, and it changes so fast. What‘s in the market right now may not be considered ‘in’ a couple of years later. This is especially true with technology.
My parents taught me to be happy with what I have, and that’s what my family and I do. We meet our needs and splurge on some things, and that’s about it. We don’t overspend or buy things because everyone else we know has those things.
Are we happy not buying those ‘in’ stuff? Yes. Do you miss out anything? Absolutely, not.
Related: Reduce The Grocery Budget: Feed A Family For $150 A Month
11. Don't be complacent. Find other ways to make money.
True. It's easy to become complacent when you are getting a regular paycheck and when you have a regular day job.
The truth is most people are contented with what they earn, and that's great. A good, steady income is a gazillion times better than no income at all.
Of course, aside from our day jobs, we sometimes use our free time for meaningless, unworthy things (e.g., binge-watching haha).
Instead of spending too much time doing these meaningless things, it is always best to find other ways to make money doing what you love. That's what my mentor told me a long time ago.
Because I like to stay home as much as possible, I try to find side hustles that would generate substantial income for our family.
Aside from blogging, I also refinish furniture and sell them for a profit, do bookkeeping, and take surveys. These side hustles help me make an additional $12,000 every month, which is way more than what I make every month.
Related: How I Made Over $30,000 In A Year From Blogging
These are the personal financial planning tips that I have followed in my life. These tips have allowed my wife and me to get out of a bad financial situation and to save so much money in such a short time. I do believe that without these tips, my family won't be able to efficiently and quickly manage our finances.
What do you think are the best personal financial planning tips you have learned in your life? Share your thoughts or stories in the comments section below.
- How I Made Over $30,000 In A Year From Blogging
- 8 Things You Need To Stop Wasting Money On
- Reduce The Grocery Budget: Feed A Family For $150 A Month
The post 10+ Borderline Genius Personal Finance Tips You Wish You Knew Before appeared first on The Practical Saver.