Best Money Tips From Financial Experts
No matter what walk of life you are on now, we have all had trouble managing our money at one point or another. We often seek advice from the internet on the best way to manage and keep our money, but there’s so much out there it’s hard to figure out what applies to you.
Making money is easier than it is to keep it, but you might be able to hold onto more if you follow this advice from financial experts:
1. Live on Less Than You Make
If you are genuinely looking to save your money, living below your means is a great way to ensure you keep it. Everyone’s income is vastly different, depending on their job, so there’s no need to buy a car with payments you can’t afford.
Trying to compete with a neighbor’s purchases will only hurt you financially and leave you in debt. The lack of savings for many people is often a result of unnecessary purchases.
– Todd Kunsman, marketing and growth, Invested Wallet
2. Start Saving While You are Young
One of the mistakes people often make is thinking that retirement savings can wait until they’re older. That is not the case at all. You can get a jump on setting up a nice retirement if you begin paying into it at a young age.
The younger you save, the more you can benefit from the money you save, with interest compounding it to about $232,000 after 40 years.
– Kate Ryan, wealth management advisor with TIAA
3. Do Not Increase Your Spending When You Get a Raise
If you’ve never heard of ‘lifestyle creep,’ you should become familiar with the term. That is when a person attempts to adjust their lifestyle to match the increased earnings of their job. It is a dangerous road that can leave you with unexpected debt.
Pay yourself from that increased income and set that money aside in a retirement or savings account.
– Chad Rixse, co-founder, Millennial Wealth
4. Look at Your Credit Report
“As a young man with a good job and a mortgage, I was disappointed when I was repeatedly turned down for the credit cards I wanted.”
This was a surprising turn of events for Mark Fidelman, but it turned out it was a case of mistaken identity. The other Fidelman had incurred massive amounts of debt, tarnish the credit of finance Mark.
Fidelmans predicament took about three months to clear up, jumping his scope up to 125 points and more.
– Mark Fidelman, personal finance expert and CMO at free online financial resource Moneytips.com
5. Make the Most of Your Credit Card Points
College days saw Joe Cortez of NerdWallet traveling between Ohio and California. It was because of this he looked into the rewards programs available through various credit cards.
Because his family grew up poor, he wanted to help those supporting him by cutting travel costs if he could.
“In my search, I found that a regional grocery store was offering bonus miles after spending a certain amount on groceries. Needless to say, I signed up everyone in my family who had the card with my frequent flyer number, which quickly turned into discounted flights.”
– Joe Cortez, NerdWallet credit card points and miles expert
6. Save Every $5 Bill
“Save every $5 bill you come across and put in an envelope. After a year, you’ll be surprised by how much you’ve saved.”
It may sound like a simple piece of advice, but that is where the beauty of it lies. You are not putting away $10 or even $20. Five dollars is a drop in the bucket compared to that and one you won’t likely notice until you’ve decided to counts your ‘savings.’
– Paris Chevalier, chief marketing officer at Xeen Financial Credit
7. Always Save for a Rainy Day
“The best money advice I received is from my grandmother, who said, ‘Always save for a rainy day, because nothing lasts forever and stays the same.”
No matter what spot you are at in life or how good you have it, it is always a good idea to set up some sort of ‘rainy day fund.’ When fate throws something unexpected your way, you’ll have the money there to help support you while you get back on your feet.
– Harrine Freeman, 40, financial expert and CEO/owner of H.E. Freeman Enterprises