Best Financial Tips: Over the days and years, we have amassed a huge amount of knowledge to beat the odds of finances.
We’ve certainly amassed a wealth of knowledge over the years covering the money beat—be it the dozens of “I got out of debt” success stories we’ve featured to the scores of psychological studies we’ve covered linking better financial decision-making to behaviour change.
Since it is Financial literacy month and end of the year, we have collated the top 50 tips and tricks for savings.
How the fundamentals play a larger role?
1. Preplan your financial year
Trust the process and quantify the events before they come. Estimate the total tax amount that needs to be paid for the financial year.
Setting a planner and going through it every day sets your priorities on point. Set that money- to-dos in the same way. Make sure your annual plan is on point before stepping forth for new financial ventures. And all of this has a good place to start? Our ultimate financial calendar.
Read More: Income Tax deductions for 2019!
2. Keep a tab on the best interest rates in the market
Q: Which loan should you pay off first?
A: The one with the highest interest rate.
Q: Which savings account should you open?
A: The one with the best interest rate.
Q: Why does credit card debt give us such a headache?
A: Blame it on the compound interest rate. The bottom line here: Paying attention to interest rates will help inform which debt or savings commitments you should focus on.
3. Track Your Net Worth
Often looking at the bigger picture helps you gauge the direction of your financial growth. Now, the difference between your assets and debt—is the big-picture number that can tell you where you stand financially.
The net worth calculation, keep an eye on it and it can help keep a tab on the progress and efforts, one puts in it.
Such calculations pre-warn you of any financial decisions and bad investments.
Get smart with your budgeting!
4. Turn your boundaries, first!
Start the day with this thought and for every other goal in your life. Here’s a checklist for building a knockout personal budget.
5. Consider an All-Cash Diet
If you’re consistently overspending, this will break you out of that rut. Don’t believe us? The cash diet changed the lives of these three people. And when this woman went all cash, she realized that it wasn’t as scary as she thought.
6. Inspect your pocket, every day!
Apparently, LearnVest Founder and CEO Alexa von Tobel, who swears by setting aside one minute each day to check on her financial transactions have achieved great things in life.
This 60-second act helps identify problems immediately, count on it! Do keep track of goal progress and expenses for the day!
Read More: 5 Tips to Reduce Financial Stress!
7. Suspend 20% of your income for financial priorities.
By priorities, we mean building up emergency savings, paying off debt, and padding a retirement nest egg. Seem like a big percentage? Here’s why we love this number.
8. Budget About 30% of Your Income for Lifestyle Spending
This includes movies, restaurants, and happy hours—basically, anything that doesn’t cover basic necessities. By abiding by the 30% rule, you can save and splurge at the same time.
How to Get Money Motivated
9. Draft a Financial Vision Board
You need the motivation to start adopting better money habits, and if you craft a vision board, it can help remind you to stay on track with your financial goals.
10. Fine-tune your goals and to the point
Use numbers and dates, not just words, to describe what you want to accomplish with your money. How much debt do you want to pay off—and when? How much do you want to be saved, and by what date?
Read More: 5 Money Rules To Increase Your Net Worth
11. Cultivate a spending question!
Pick out a positive phrase that acts like a mini rule of thumb for how you spend. For example, ask yourself, “Is this [fill in purchase here] better than Bali next year?” or “I only charge items that are $30 or more.”
12. Love Yourself, most importantly!
Sure, it may sound corny, but it works. Just ask this author, who paid off $20,000 of debt after realizing that taking control of her finances was a way to value herself.
13. Make Bite-Size Money Goals
One study showed that the farther away a goal seems, and the less sure we are about when it will happen, the more likely we are to give up. So in addition to focusing on big goals (say, buying a home), aim to also set smaller, short-term goals along the way that will reap quicker results—like saving some money each week in order to take a trip in six months.
14. Stop the negative thought on the spot.
Hello, self-fulfilling prophecy! If you psych yourself out before you even get started (“I’ll never pay off debt!”), then you’re setting yourself up to fail. So don’t be a fatalist, and switch to more positive mantras.
15. Get Your Finances–and Body—in Shape
One study showed that more exercise leads to higher pay because you tend to be more productive after you’ve worked up a sweat. So taking up running may help amp up your financial game. Plus, all the habits and discipline associated with, say, running marathons are also associated with managing your money well.
16. The true value lies in the smallest of things.
Savouring means appreciating what you have now, instead of trying to get happy by acquiring more things.
Read More: The Key to Money Management!
17. A friend in need.
According to one study, friends with similar traits can pick up good habits from each other—and it applies to your money too! So try gathering several friends for regular money lunches, like this woman did, paying off $35,000 of debt in the process.
Gear Up Your Earning Potential
18. When you want to discuss salary, get the numbers correct.
If you give away your current pay from the get-go, you have no way to know if you’re lowballing or highballing. Getting a potential employer to name the figure first means you can then push them higher.
Read More: Best financial takeaways from 2019
19. You Can Negotiate More Than Just Your Salary
Your work hours, official title, maternity and paternity leave, vacation time, and which projects you’ll work on could all be things that a future employer may be willing to negotiate.
20. Don’t Assume You Don’t Qualify for Unemployment
At the height of the recent recession, only half of the people eligible for unemployment applied for it. Learn the rules of unemployment.