Personal Finance Gurus Share The Top Tips They Want Everyone To Know
From tracking your spending to opening a certain kind of savings account, here’s how to get your money in order.
Learning about financial tips and tricks is an important step in financial success.
When it comes to money, debt, budgeting and investing, it can be hard to know where to start. The path to financial success is different for everyone, and it can even mean different things to different people.
For you, financial success might mean having a lot of money in your savings that you can leave to your children and grandchildren. For someone else, financial success may mean being able to book flights as often as they want. And there is no right or wrong answer.
But it is important to understand your money and know what goals are important for you, so that you can set yourself up for financial success as you move through this expensive life.
Below, financial professionals share their top tips.
Get your finances organized
“So, I think the first thing, and the biggest one I would say, is to get organised,” said Kimberly Palmer, a personal finance expert at NerdWallet. “I think that just making sure you’re organised with your finances is really the first step toward taking control of your spending and your saving.”
Finances can have many moving parts: Some bills come through the mail, others come via email, and other payments are just directly taken out of your bank account.
Palmer said you want to make sure you’re keeping track of all of the different moving financial pieces and that you have a system that works for you.
“For some people that means uploading everything into a spreadsheet or using an app that helps you track your spending, but however you choose to do it, whatever method you use, I think the biggest, most important thing is to get organized with your finances,” she added.
Align your financial goals with your values
Gaby Rincón, a personal finance coach and the founder of Realistic Personal Finance in Los Angeles, said it’s important to make sure your finances line up with your goals and values.
So, if you want to retire early, you should make sure your financial decisions reflect that goal. Or, if you want to travel more, you should keep that in mind when deciding what to spend money on.
“My point in this is that getting your money in order, it doesn’t have to be a negative, or it doesn’t have to be deficit-based,” Rincón said. In other words, just because you create a budget doesn’t mean you can’t budget for the things you love, like fancy massages or trips to visit family.
Instead, as you meet your financial targets, you can know you’re working toward what you want and making decisions you can actually afford.