Personal Finance Tips Top Ten List 2022

 David Letterman has his Top Ten List, so we thought why not have a top ten list for personal finance? After a little research, we have compiled the following list of top ten personal finance tips.

1. It’s not how much you make, its how much you keep. Now I know you are probably thinking “I already knew that.” Chances are you probably have heard this before, but the question is do you practice it. The principle holds true whether you are a doctor earning $250,000 or more a year or a brick layer earning $18,000 a year. If you spend more than you earn, you will never achieve your personal finance goals.

2. Know who you are financially speaking. Study your spending and savings habits. By doing this, you will see where you need to improve in order to meet your goals. Don’t bury your head in the sand and ignore your spending and savings habits.

3. Get a firm grasp on your income and your expenses. Most people can tell you right off the top of their head how much money they earn. But this is only half of the picture. You need to know your expenses just as well, if not better. If they don’t balance, do what ever it takes to get your expenses down, or your income up. It may mean getting a part-time job for 6 months or selling something. Look at your assets and liabilities closely.

4. Commit a family budget to paper and stick to it, no matter what!

5. Avoid pleasure purchases until you can pay cash for them. Things like: boats, RVs, vacation homes, swimming pools, sports cars, etc. Then when you do, shop around for deals. Money talks! If you have cash, you have something the seller desires and it puts you in control.

6. Minimize your debt. Don’t fall for the old trick that, debt is good. Debt is good, if you are the Lender!!! Just imagine, if you attacked and paid off all your debt (except your home, unless you can feasibly pay it off) and was able to turn the tables and save, save, save what you use to pay out in bills. You then earn interest on your money. Guess what you just became the lender. You are loaning money to your financial institution and they are paying you and not vice versa.

7. Take advantage of compound growth. Compound growth occurs when you invest money, earn interest, and then reinvest the interest in an effort to earn more interest. Done properly over the long term can earn you a substantial retirement.

8. Buy a home. This is the greatest long term wealth building vehicle available. There are a lot of tax advantages and provide long term growth.

9. Don’t just save for college or retirement blindly.  When these goals are met, set bigger goals and watch your wealth grow.

10. Take control of your decisions and practice awareness. If you can do this on your own, get professional help from a licensed financial advisor.

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