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9 Life-Changing Financial Tips Everyone Should Know

People get easily locked into financial habits that aren’t always in their best interest. When it comes time to start saving for your child’s college fund or get ahead of your monthly car payments, you may not be in the position to accomplish your goals.

Figuring out how to handle your income is something people learn throughout their lives. There will always be new changes to get used to and challenges to face, but there are some simple tips anyone can use to give their finances a boost.

Here are nine life-changing financial tips everyone should know. Once you have these tips in your back pocket, you can use them to stretch each dollar and change how you approach your monthly spending.

1. Create a Spending Plan

Most people make budgets to get them through the year, but doing that can be stressful. Instead of trying to track every purchase, create a spending plan. Subtract the costs of all your bills from your total monthly income. Whatever’s left over is what you’re free to spend, giving you a better idea of what you have to work with.

2. Make an Extra Mortgage Payment

You strive to pay your mortgage on time every month, but have you ever made an extra payment? Just one per year will shorten the length of your loan and reduce your total interest payments, saving you money in the long run.

3. Use Employer Contribution Plans

Some employers will match your 401(k) savings up to a specified limit. Take advantage of this if you have one at your job, since it doubles your retirement savings automatically.

4. Diversify Your Investments

If you want to get into investments, consider diversifying them. In the case that one sector faces hard times, you’ll have other index funds still making you money.

5. Review Monthly Statements

Keep an eye out for monthly statements on your bank accounts and credit cards. Reviewing them minimizes your risk of fraud, which affected 14.4 million people in 2018.

6. Schedule Your Grocery Shopping

Want to cut corners at home? Plan your grocery lists and shop during store sales so you get more food for less money. Strategizing what you’ll buy and when you shop could give you the financial freedom you want.

7. Set up Automatic Saving Withdrawals

It’s hard to put money away in savings when you could use it for something else, so set up automatic withdrawals to deposit funds before you ever see them.

8. Find Your After-Tax Income

You know what your salary adds up to, but you could still overspend. Figure out what you really make when you find your after-tax income and adjust your spending to the new number. 

9. List Your Financial Goals

It’s hard to reach your goals if you have nothing to remind you of them. Write down a list of your objectives so you know what you’re going to accomplish with each paycheck.

Rethink Your Finances

Even if you’re confident in how you handle your income, it’s time to rethink your finances. Try some of these tips to see how they’ll make your life better and give you more wiggle room in your budget.

Cher

View Comments

  • Right now I am reading "Margin Matters" by Jason Brown. I go through programs to shop like Swagbucks.com and recently we have called all our credit card companies to request they lower our APR. My husband's credit score is 810, and we feel like we shouldn't be paying that much in APR, although we may just pay them off, or mostly off and keep them open. Closing credit cards or holding zero balance can actually damage your credit--I worked for a credit repair company for 3 years. There are all kinds of ways to save money and invest. We are currently being very proactive.

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