ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

4 Simple, Savvy Personal Finance Tips

Updated on December 22, 2015
4 Simple, Savvy Personal Finance tips
4 Simple, Savvy Personal Finance tips

It is very difficult to tame your personal finances when they get out of control. But what most people don't know is; you don't need to be some sort of finance guru to efficiently and effectively manage your finance. Sometimes, all it takes is a few tweaks here and there to make the world of difference. Here are a 4 simple, tips you can employ that will net you great results when managing your personal finance.

Source

1 - Analyze the Heck Outta Your Spending!

Some of us have bad spending habits we are completely unaware of. Whether it’s purchasing clothes you will never wear, micro-transactions through smart phone apps or just a few kindle books because they were only $4.99. Check your Debit Card or Credit Card online accounts to see if there is a “spend analyzer feature”. This feature breaks down your purchases on your credit or debit card by categories such as: Entertainment, Groceries, Utilities, Transportation, etc. I included a screenshot of Discover's Spend Analyzer as an example. Having detailed knowledge of your spending habits is very important in managing one’s personal finances.

Source

2 - Budget like a Boss!

I know…this again! A lot of people are frustrated by budgets and besides it being tedious work to set up and manage, it is also very discouraging when you go over your budget. To avoid this you should try to set realistic goals according to your own personal spending analysis. If you take a Cab to work on average 3 days a week at the cost of $15 per ride, your budget shouldn’t eliminate these cab rides altogether. Instead, set an allowance for 2 days per week instead as this will make the transition smoother. Revise your budget as you see fit but try to do it systematically, for instance (every 6 weeks or 3 months). Reducing the allowance for every category all at once can be overwhelming, so schedule times at which you will implement new budgets for each category.

Savings Tips

Source

3 - Don’t Forget to Save!

If you have a specific savings goal, you need to first identify the goal amount and the timeframe in which you want to achieve it by. Let’s say you want to buy a new laptop in 12 months and you estimate it will cost $1200. You now know that you need to save $100 ($1200/12) a month in order to achieve your goal within that timeframe. If $100 per months is outside your ability to save, consider tightening your budget further or expanding your timeframe. Depending on the timeframe, it may be very beneficial to save for your goal in the relatively safe Mutual Fund or a Money Market Account. These accounts are fairly liquid and you can retrieve your money within a few days. Betterment, Vanguard and Fidelity are just a few that offer options to open such accounts online. I am not an investment professional, so speak with one about your specific needs or do some research to determine which would be right for you.

Paying off Debt

Source

4 - Pay your Debts… Please!

Neglecting to pay or paying debts slowing is only hurting once person… The common sense Goddess! She face-palms every time we do something foolish. Revolving debts such as credit cards are among the most common debt type and they are usually very expensive. In reference to your savings budget in step #3, I strongly believe that high interest debts like credit cards should be paid off BEFORE you begin saving money. At the same token, you need to keep some cash on hand for emergencies that may require it. Just keep an emergency cash reserve for those ugly, surprising expenses such as repairs and the rest should go toward eliminating credit card debts. The reason for this is: It is almost impossible save money where you could accumulate as much interest as your credit card charges. So aside from your emergency fund, your excess cash should go to relieving the burden of a high interest debt rather than sitting in a saving account collecting little to no interest. At the same token, if you can get 8% interest from a Mutual Fund or Money Market Account, you should not be so hasty as to pay off debts like (student loans) that are typically less than 8%. You apply the inverse of this principle and pay the loan’s minimum payments and invest or save the remainder of your savings budget.

Check out this related article explaining How APR and APY Works to better understand your credit card.

More food for Thought!

There is a book, the first book that changed my thinking of personal finance as a whole. My idea of money did not exceed: Making it, spending it and saving it. Rich Dad Poor Dad by Robert Kiyosaki really added a lot of dimensions to money for me. Click the sponsored link to check it out or at least read the reviews to see what others are saying about it. I genuinely believe it's worth it's weight in gold. Drop by the poll below or leave a comment with feedback.

Check out my profile for other Hubs like:

How I got Started with Dungeons and Dragons

Planning DIY projects the smart way

Please take a second to answer the question below :)

Which Personal Finance Tip do you already kick ass at!?

See results

Funny Teen Titan Money Clip

Comments

    0 of 8192 characters used
    Post Comment

    • Frank Atanacio profile image

      Frank Atanacio 

      2 years ago from Shelton

      anytime my friend :)

    • Keino C profile imageAUTHOR

      Keino Chichester 

      2 years ago from Brooklyn, NY

      Thank you Frank! I caught the typo in the URL when I wrote it but I didn't think to re-check the title. Much appreciated.

    • Frank Atanacio profile image

      Frank Atanacio 

      2 years ago from Shelton

      smart and helpful Finance tips.. hey you may wanna correct Finance in your title.. gives this wonderful guide of a hub more credibility my friend :)

    • Keino C profile imageAUTHOR

      Keino Chichester 

      2 years ago from Brooklyn, NY

      Thank you for your comment Mel. The spend analyzer 'gizmo' as you call it is a great tool. For a long time I have been importing my statements to analyze them myself, this actually save me a lot of time. :)

    • Mel Carriere profile image

      Mel Carriere 

      2 years ago from San Diego California

      Concise but useful tips. I wasn't aware of this spend analyzer gizmo. I'll have to check it out. Great hub!

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)