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Personal financial planning is something I’ve been struggling for years.
Some people think I’m too serious about finances and I should live a little bit more spontaneous since I’m still – quite young – in their perspective.
Live now. Plan later.
However, when will later arrive?
I had experienced the ups and downs of financial planning disregarding the fact that I’m only in my early twenties – my blossoming days is what many of my relatives refer.
After I graduate from college, I had to move into the dormitories since I can’t drive. My parents held an – you can start driving when you’re legal – rule. I was seventeen when I enter college.
I admit I receive financial aid when I enter college. However, I did not know that I cannot dip into my aids until weeks after college! Why? I had to pay for the dorms first.
Growing up, I never plan out my finances because I had parents who always give me money or a boyfriend who spoil me rotten. I admit I grew up in a comfortable environment.
It hit me hard when I realize I don’t have money to pay for my books which cost way too much. I also learn that hard way that you don’t need these hundred dollars books – which will be discussed in another post.
So, what did I do?
I called dear ole mother and father, then cried like a baby – in front of the financial aid office.
If I can – I would take back that dreadful day.
That’s when I learn that I need to buckle up and finance. Here are my best financial tips – ones I learn through trial and error – in order not to embarrass myself in public again.
1. Time is Money
If you believe time is not money, you’re plainly wrong.
In your life, you do two things – make money or spend money.
When you’re not making money, you spend it.
That’s why when I have free time, I will use it to make money.
There are many different ways to side hustle such as selling homemade merchandise, freelance writing, assisting with ads on Facebook, or taking surveys.
For example, I take surveys during my free time while watching a show.
It’s difficult to say no to your friend who wants to spend a Friday night at the club together or when your co-workers ask you out for a drink at the bar.
It’s hard to get the motivation to cook homemade meals every Sunday and consume the same edibles the whole week.
It’s tiring to work overtime to make more money.
It’s nerve-wracking to call the cable, cell phone, or internet company and negotiate for hours to save a few bucks per month.
Over time, these things that help you save money can break your mentality resulting in depression. I am not going to sugar coat you – this is how adulthood work, but it doesn’t mean we have to bite our tongue every time something slaps our face.
I propose, the classic you day.
Select a single day every two weeks and make it all about you. Plan that day with everything you want to do – not everything you should do. Don’t fall for the trick of doing it once a week – once every two weeks is sufficient, trust me.
Changes are one thing that’s constant.
That’s even true with personal finance.
It would be best if you accepted the fact that financial saving changes.
Similar to everything else, you learn to adapt and accept these changes.
If someone suggests a new method on how to save money, don’t turn your head.
You need to know where your money is going.
If you have a 401k, learn how much fee you pay. People don’t know that 401k investments aren’t equal. Some company merely accept a specific portion of your money and invest while others match it. This means that if you invest $5, they invest $5. Now, that is a darn good deal.
If you have dental, medical, or something else – compare it with your partner. Which one holds better care? Jump on that ship.
Learn the different type of credit card fees from each bank.
It would be best if you always read the terms&conditions before signing.
I start investing last year with Acorns.
I got pull in with the beautiful $5 bonus when you use a sign-up link.
Acorns let you invest as little as $0.01. It rounds up your purchases and invests your money when $5 is reached across many stocks while reducing risk. You don’t need to be a Wallstreet genius to invest with Acorn which is thumbs up for me.
6. Spending Empty Pockets
Many people – like you and me – spend money that’s not ours.
One of the best lessons I learn to get out of debt is that – if you can’t pay with cash then you shouldn’t pay at all.
Another lesson is to leave your credit cards at home. If you’re able to pay off the credit card immediately – I mean right after the purchase then feels free to use it! Other than that, tuck that card away!
Numerous things come with credit card debt – interest, penalty, annual fees, etc.
Credit card debt is like a disease that needs constant treatment.
There is a cure – only for those who can afford it.
Do not fall for the credit card trick – pay more than the minimum payment and never miss a payment date. If you forget a payment date, then you might as well not pay it at all.
7. Understand Your Finances
It is difficult to manage your money when you do not understand the start point. The truth is – there is no solid start line when financing.
It is okay to trial and error because that’s how you will shape your budget plan.
I suggest that you start small – such as managing your monthly grocery spending than when everything stabilizes; motion towards your home bills. Afterward, your spending habits and then onward.
Do not force yourself to do everything at once.
8. Be Happy
Even the wealthiest person cannot purchase everything.
It’s easy to get lost in what you don’t have then to remember what you do have.
It’s difficult not to keep up with the trend by having the latest phone, tv, gadgets, etc.
It would help if you remembered that things change – what may seem popular may not be tomorrow.
The next on my list of best personal financial planning tips is being happy with what you have.
You are not missing anything.
I hope you enjoy what I had to share.
Got any effective tips?
I would love to read about it. Have a happy and active planning life.