Improve Your Finances Dramatically With the Following Tips

With consumer debt levels at an all-time high and personal savings rates near an all-time low, you’d think personal finance,  was rocket science.  It’s not.  Personal finance is merely the practice of handling one’s home finances prudently, intelligently, and in a way so as to minimize risk of disaster.  That may sound overwhelming to some, but it’s really not.  Keep the following tips in mind as you navigate day-to-day financial situations and you will undoubtedly improve your own finances dramatically.

Tips To Improve Your Personal Finances

  • Insure yourself against losses – There’s a reason liability auto insurance is required in most states:  the cost of fixing a damaged vehicle, not to mention any medical bills involved, can be massive.  One accident and years of diligent savings can be completely wiped out.  That is, unless you have adequate insurance coverage.  This is not the place to trim expenses.
  • Save as much as you can, with 15% being the lower bound – You absolutely must save at least 15% of your income each and every month if you want to retire comfortably.  Of course, if you can save even more than that you should, but 15% is the absolute minimum.
  • Learn how to manage your own money – This is where many people go wrong:  they hire a financial advisor to take care of investing their money.  But consider this:  how could you even know which financial advisor to hire if you don’t at least know the basics of investing?  There are a lot of sharks in sheep clothing out there, just waiting for you to hand your money to them.  Educating yourself is the surest way to avoid becoming a victim.
  • Set a plan and stick to it – Setting personal finance and investing goals is easy.  Coming up with a plan to meet them is a little more difficult, but still pretty easy for the average individual.  The hard part, believe it or not, is actually sticking with your plan through thick and thin, year after year.  You will be tempted to change your asset allocation many times over the years.  In those situations, review your plan.  If it still makes logical sense, stick to it even if you are scared of current market conditions.

Leave a Reply

Your email address will not be published. Required fields are marked *