Do you want to be financially free? Do you want to know how to achieve financial goals while having a good time and spending quality time with your family?
You need not bother with more lucrative work or a bonus from an employer to achieve all you wanted from life. For some people, better money management is needed to reduce their spending, work on their capacity to contribute and save, and accomplish financial goals that once appeared to be unimaginable.
Top personal finance tips for beginners
You may get a lot of financial tips from around you. Some of the tips might get you confused. So, we ignore all the tips you heard or followed in the past. We explained a bunch of personal finance tips for beginners below.
1. Meet financial consultants
The first step towards achieving financial freedom is to consult a financial professional for their advice and counseling. Consulting with the appropriate counselor or other advisors on all matters about legal, tax, investment, or accounting obligations and requirements helps to understand how personal finance work. They also help to know how to make money and retain it. The financial professional will also help you understand what you are doing wrong in your life concerning finance.
2. Set SMART financial goals
Every achievement starts with setting goals. The SMART plan means a goal that is Specific, Measurable, Achievable, Realistic and Time-bound.
It is always good to have a clear idea of why you are saving and what you are spending your hard-earned money on. Setting SMART goals will assist you in achieving financial success and help you in your journey to be wealthy.
3. Set a budget and execute
Whenever you think of where you are going concerning your personal finance, it’s essential to look hard and long at your present financial circumstance. Personal finance planning expects you to make a spending plan because of your approaches as income and expenditure, to know the need of your variable expenses.
You do not have to be wealthy, old, married, or a parent to need a budget plan. Which also lays out who makes financial and health care decisions for you if you can not make them yourself. The budget will give you permission and power to decide where and how to spend your money, rather than wondering where the money went.
Setting a budget will help you manage your finance and help cut out excess or unnecessary spending. With funding, you will spend smart and save great. However, Setting a budget is not the final goal, but following and executing it is the ultimate thing to achieve.
4. Pay yourself first
One of the subtle pieces of advice to financial success is to pay yourself first. Paying yourself first means saving what you had decided to be your saving margin out of your income for investment and spending what is left.
Many people do this act wrongly by spending first and saving what is left after spending. The saving should be removed from the income, then, the balance can be spent.
5. Spend money to make more money
In personal finance, you often hear the word ‘SAVING’ a lot, there is this misconception. You can never save your way to wealth. If you want to be rich or make more money, you have to spend more money.
However, you have to be worried about what you spend, and it has to be an income-generating venture, not on any expenditure or consumption.
6. Start a side hustle to earn passively
No matter how much you are earning, there is always room to make more money. The more money, the merrier. To be financially free and wealthy, you have to earn more money than you are spending. Since we all have a limited time to work, the hack to earn more money is to find a way to earn passive income. Starting a side hustle or investing is a good and fastest way to earn passive income.
7. Start Investing
Investing is a way of using part of what you had made to go out there and make more money for yourself. Investing is key in gaining financial freedom and becoming wealthy. All billionaires from Warren Buffet, Bill Gates to Jeff Bezos are known for investing significantly in high-return yielding ventures. Investing is a fast lane to becoming wealthy. You can never be wrong with the investment with the correct information and education. But you must take risks sometimes to earn a handsome return.
8. Take a finance course from online
With the help of the internet, one of the fastest ways to up our game in personal finance is by taking an online course. There is a load of such courses online, both paid and free, like Coursera, Udemy, and Alison. You can also watch free finance tutorials for free on YouTube.
9. Read books on personal finance
Aside from online courses, another way to learn personal finance is to read books. Reading books are the secret of great investors like Warren Buffet, Jeff Bezos, and Bill Gates, and they are all lover of books. You will learn a lot about finance from reading different books, and there are lots of such books on stores like Amazon and other online marketplaces.
10. Stay out of debt
It is mandatory to stay out of debt to be free financially and become wealthy. Debts actually eat your income every month whether you like it or not. Particularly any that has an exorbitant financing cost, for instance, on a credit card or an expensive loan. So, you know now that any kind of debt is the blockade on the way of your wealth.
By repaying your loan every month, you can minimize the premium. It would be better if you close accounts of debts completely, so you will have the extra money in your hand that you were paying in the past. Now you are free to use the money wherever you want.
Final thought
The road to financial freedom is a very long and lonely one. You will need a lot of patience, practice, and strategy. Over time you will know how to master the art of budgeting, investing, saving, and avoiding debt. You must also understand that your total net worth distinguishes between your assets and your debt, indicating where you stand financially. Beware, it can assist with keeping you advised about the headway you are making toward your financial goals or caution you to assume you are backsliding.
