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There are numerous personal finance tips on the internet and in self-help books. These tips make personal financial management look like a complex issue, while, in essence, it is straightforward. We have broken down ten financial tips that will help you better your financial goals.

Following those tips may be an uphill struggle. You will continuously miss your financial targets, but with persistence, you will acquire the kind of financial success you desire.

Here are ten financial tips for a healthier financial life.

1.    Budget appropriately

Budgeting helps in accounting for every coin you earn. You always need to have a list of your expenditure and income. A sufficient budget hence leaves you with surplus money.

An efficient budgeting technique is to use 50 percent of your income on housing, food, and bills. Twenty percent of your income should go to savings while a surplus 30 percent should be for emergencies or whatever you please.

As a rule of thumb, your budget should fit your lifestyle.

2.    Set Realistic Financial Goals

Your financial goals can be short term or long term. Always prioritize important goals and those that can wait. Generally, clear goals will trigger the motivation of always working to achieving them. Your three-month financial goals can be:

  • Save a total of $ 900 in three months.
  • Invest in shares.
  • Refurnish my house.

On the other hand, long term personal financial goals can be:

  • Complete my student loan in 3years.
  • Buy my house for 5 years.
  • Have another stream of income besides my regular income after four years.

For both goals, you always need to evaluate and review your progress. You can always adjust to get closer to your financial goal.

3.    Pay Your Credit Card Balance on Time

Credit cards are financial tools that should be well utilized.  If used to purchase goods and services, always take it as money borrowed, which should be refunded urgently. Besides, approaching your credit card as free money and accumulating debt usually ruins your finances.

Banks will always charge high interest on outstanding balance every month. This added monthly spending will be costly in the long run.

On the other hand, if you use credit cards diligently, you will not incur extra expenses in interests.

4.    Avoid Unnecessary Debts

Debts that are acquired to sustain lifestyles or purchase depreciating assets are unnecessary. Such debts will reduce your disposable income, which can lead to further debts in the future.

Go for debts with low-interest rates such as student loans, mortgages, or business loans that increase your liquidity.

5.    Always Set Part of Your income for emergencies.

Even with a steady paycheck, an emergency kit is a personal finance tip that will come in handy. You need to have cash for emergencies such as:

  • Unexpected job loss.
  • Uncovered medical expenses.
  • House repairs.
  • Broken air conditioning.
  • Water leaks
  • Theft of household items
  • Fire damages at home
  • Floods
  • Hurricane and storm damages in the entire town.

An emergency fund will save you from debt in case of job loss or such emergencies.

  • Invest as early as you can

Investing helps boost your liquidity and net worth. Many people do not take the time to invest or learn how to avoid losing money in investments. For instance, you can invest in shares, real estate, online ventures, and retail store in your local town.

7.    Live Below your means.

You need to spend less money than you are being paid. When you spend more than you are paid, you will be in financial struggles and live on paycheck after paycheck.

Personal finance tips that will go a long way in cutting costs is spending money on what is necessary and, as mentioned above, stick to a budget. Here are tips for cutting down your expenses:

  • Cut down on expensive cable subscriptions. Alternatively, you can look out for discounts.
  • Spend less on the phone airtime and the internet. If possible, have a monthly plan.
  • Budget for clothing.
  • Work out at home and cancel the gym membership.
  • Cook at home as opposed to eating out.
  • Reevaluate your entertainment expenses.
  • Buy groceries in bulk.

Once you have reduced your expenses so that you can comfortably live below your means, use the extra money to set yourself on a financial independence path.

8.    Have a Savings Culture

Saving before meeting other financial obligations will make saving easier. If you don’t pay yourself first, chances of not saving will be high.

Saving at least five percent of your income will amount to huge savings annually. To ensure you remain disciplined, let the amount be deducted automatically from your salary.

9.    Pay off Debts

Credit card debt is not the only debt you can pay off. When you get tax refunds, pay debts such as mortgages, Business loans, personal loans, and student loans.

Paying off debts is a personal finance tip that will benefit you in the following ways:

  • You can retire early.
  • You get free income that you can invest in or holiday without borrowing.
  • Free from risks of not meeting your expenses in case of job loss.
  • Good credit score.
  • Stress-free life that would not be possible with unpaid loans in case you are in debt.

10. Use your employment Benefits.

Employment benefits come in many forms. They can include medical cover, end of the year bonuses, and send off packages after a certain period.

Dental insurance covers are worth lots of money. Ensure you are maximizing your covers and making use of those that save money. Such covers save you by a reduction in taxes and spending your hard-earned cash.

The above personal finance tips are what you need for a lifestyle free of financial struggles. Thus, incorporating them into your financial decisions will better your finances. Some tips like investing can, however, lead to financial losses in case of losses.

Other than investing diligently, you can review your insurance covers. Ensure that your insurance covers meet your needs. For example, you can’t take whole life insurance when you don’t have dependents. You can take disability or term life insurance that can be helpful if you become disabled.