11 Personal Finance Tips That Will Change Your Opinion of Money


Through savvy personal finance management, you will not only be able to increase your earnings over time, but you will also be able to save more for the future. Here are 10 personal finance tips that will help to change your opinion of money.

11 Personal Finance Tips


For the successful management of your personal finances, it is very important that you organize well. To be able to do so, create your own financial schedule where you will put in all of the important reminders concerning your financial obligations and cash flow fluctuations.

Stay on top of your taxes and debts, pay the ones with higher interest rates first and make sure your cash flow is in balance every step of the way.

Find the Money

To be able to pay for all of your expenses when they are due, make sure you have enough money all of the time. This is so that you can avoid unnecessary additional loans, which may lower your credit score even further in the future.

Budget your funds to save money wherever possible and take a proactive approach. Seek the opportunity to earn more by negotiating working conditions with your employer, or by taking up some other project that can add earnings into your pocket.

Use Realistic Predictions

When it comes to personal finances, it is very important to adjust your expectations and take into account only realistic predictions. That means there is no justified reason to make predictions based on your luck or wishes.

When summing up all of your earnings and expenses, it is very important to be cautious not to overrate your income and to allocate the expenditures when they are due for payment. Only if you do this the right way, you will be able to plan your finances and act accordingly.

Try the Cash Only Approach

You might not be aware of that, but when you pay for goods or services with a debit and/or credit card or use internet banking, you are likely to spend much more money as opposed to paying all of them with cash.

The reason is simple: when you have only cash on you at all times, you are much more aware of the amount of money you really have and you are inclined to think harder when you are preparing to spend it.

Analyze Your Transactions Carefully

You should make sure you set aside at least five to ten minutes a day to analyze your finances through a transaction history. This is especially so if you are using cards and e-banking as a primary method of payment.

This is just another technique that ensures that you spend in accordance to what you have earned. By having insight in your daily transactions, it will be easy for you to see which things you need and which you don’t.

In addition to the daily transactions, you also need to make sure you stay on top of your credit score, as it is a very important determining factor when it comes to the future of your personal finances.

That is why you should add ‘check your credit report’ to your financial calendar and analyze it to see if your credit score is within the acceptable boundaries.

Budget Your Income

As you are probably aware by now, how much you earn is not the only factor that guarantees success when it comes to personal finances. The allocation of your funds is much more important and you should focus on it as well.

With that in mind, you should budget your income so that you can save money for emergency situations and add funds to your retirement plan. However, be flexible when it comes to saving.

Allocate around 20% of your total income towards priorities but allow yourself some fun and set aside around 30% of money earned to accommodate your lifestyle and enjoy the fruits of your labor.

Set the Goals

When making your personal finance plans, it is very important that you have defined goals you wish to achieve. Once you lay out your goals, the strategy is easy to build and you will get motivated to earn, save and spend in accordance to them.

However, when defining your financial goals, try not to get overwhelmed. Set a few goals at a time and make sure that they are easily manageable. If you fail to do so and your goals turn out to be too ambitious, your whole financial construction may eventually collapse.

Be a Smart Borrower

Sometimes, you need to consider acquiring some additional amount of money through loans in order to achieve some of your financial goals. There is nothing wrong with this type of thinking, but you should be very careful when lending money.

First, you must make sure you have taken all of the fees, taxes and interests into account when calculating the amount of your future payments as well as your ability to service the debt when it is due.

In addition, make sure you start with a smaller loan first, in order to be able to make a decision whether you are able to tackle a bigger one or not.

And whatever you do, have in mind that it is always a bad idea to cosign a loan, as your credit score will go down in a spiral if the original borrower starts missing their payments.

Spend Your Money Intelligently

As we have already said, it is very important to re-evaluate your purchases every step of the way. Having said that, have in mind that the cheapest is not always the best buy. Take into account the quality factor and always evaluate a purchase through a cost per use method.


Sometimes, saving too much is also bad for your personal finances. That is because you want the money to work for you when you are not using it. Therefore, if you have set aside a more or less substantial sum of money, explore your investing alternatives.

Use conservative calculation methods when measuring the potential profit you will make and create your unique investment portfolio.

From that point on, at least once a year, take the time to realistically assess your investments and rebalance the portfolio if needed based on the fluctuations on the market you are investing in.

Reverse Mortgage

Reverse mortgage is a kind of home loan meant for seniors – ages 62 and above – who own homes. What’s different about reverse mortgages is that it doesn’t require monthly payments.

Instead of these monthly payments, the loan will be repaid only after the person who borrowed either moves out or dies. Many homeowners these days think of reverse mortgages as a great plan for when they retire as well as a good source of income.


In this article, we have gathered the most important tips on how to manage your hard-earned money and make sure you will have more of it in the future.

In a nutshell, you should be aware of your financial position, be prepared to negotiate the terms and conditions of your employment and seek other earning opportunities as well.

Spend intelligently, save enough to achieve realistically set goals and invest your surplus funds to earn additional profit in the future.


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