Business Insight

30 Personal Finance and Saving Tips in 2022

Sticking to personal finance and saving tips isn’t easy. I believe everyone has made some money mistakes before.

Nonetheless, when it comes to income and spending, you need to be deliberate and logical than emotional.

I have put together 30 personal finance and saving tips to help you boost your income whiles checking your spending.

1. Start an emergency fund

The importance of having a backup money for life eventualities can’t be underestimated. Emergency funds is a must have. Try to save about 3 to 6 months of your salary into an emergency fund as a finance cushion should you face an unexpected financial need.

2. Create a budget

Budgeting is a big money advice. It tells you where your money goes, where is comes from and whether to look for more sources of income.

If you want to get serious with your money, you have to stick to your budget. Budgeting apps can help you manage your finances on a simple dashboard.

3. Negotiate for a raise

Talk to your employer about a possible renegotiation of your salary. You’re probably wondering how to ask for a raise and still get it. Well, If you have done a good job or acquired some more self-development credentials, you can push a higher salary to boost your income.

4. Think Investments

It is possible that you may be focusing too much on your savings and emergency fund. If you can’t find your way around what to do with your money, just seek some investment advice.

You can also take some time to think of investing index funds, mutual funds, stocks and other investments that pays better in the long term.

5. Adopt the 50/30/20 personal finance rule

US Senator Warren Buffet’s 50/30/20 rule is perfect for anyone struggling with budgeting and saving. She opines that, you should spend 50% of your income on basic needs: food, clothing, health care, housing etc.

The 30% should be spent on wants such as lifestyle, shopping, hobbies etc. and the 20% should be allocated to a savings plan such as emergency or college fund.

6. Automate your savings

Savings need to be consistent, and it is difficult to visit the bank regular to do that. You can automate this savings from your checking account.

This way, you won’t miss it and before you know it, your account had grown over time.

7. Use cash back prepaid debit cards

Most money cards charge higher fees with no cashbacks at all. But the Walmart money card charges lower fees and gives you a cashback of up to $75 per year.

8. Buy with cash

Most e-payment platforms and Apps attract fees for money transfers and payments options.

This $2 or $3 fees may not look much at first until you start to take a second look.

9. Avoid Debts

Never try to spend money that’s not yours. What debt does is that, it allows you to enjoy another’s money and pay them more at a later date. Borrowing should be your late resort, but at best, find ways to avoid debts.

Read this: Ways to avoid getting into too much debt

10. Commit to your short term goals

Saving for your short term goals seem rather easier than long term, isn’t it?. For example, aiming to save $500 in the short term looks attainable to targeting $5000 in the long term. So whiles you have long term goals, also give attention to your immediate goals.

11. Don’t carry credit cards around

Credit cards are a necessary evil. It allows you to buy and pay later, so don’t have them on you all the time.

12. Refinance your mortgage

Look out for available options to refinance your mortgage to a lower interest rate. For instance, on a 15-year $100,000 fixed-rate mortgage, lowering the rate from 7 percent to 6.5 percent can save you more than $5,000 in interest charges over the life of the loan.

13. Start saving for retirement early

Don’t postpone the idea. Don’t wait until you have your dream job or you get a raise at work.

Retirement funds need time to grow, so the longer wait to start, the more time you waste to earn a compounding interest.

14. Pick state student loans over private loans

Federal students’ loans have a more flexible terms of payment and charges lower interest rates compared to private student loans.

Again, if you get job right after school to prepay your federal loans, you get grace periods sometimes. Not same with many private lending institutions.

15. Cook at home

Continually eating out can be costly, but you eat homemade meals without sacrificing your lifestyle. Make a grocery list, cook at home and freeze the leftovers for another day.

It’s better to spend $50 for a three-day meal, than spend $20 for just one lunch.

16. Consider free TV

You are at work all day, 5 days a week. You probably don’t need a 100 channel TV subscription for $30 a month. Try the free channels and save $360 per year.

17. Pay off your debts early

Sort out your debts and choose a debt repayment strategy that will help you pay it off early. The longer you delay debt repayment, interest compounds, and your financial situation becomes worse. 

18. Auto pay your bills

Auto-paying your bills will ensure they are paid on time, in full to avoid late charges.

19. Don’t make impulse purchases

Sometimes, we buy things we don’t plan for, but it isn’t a good financial habit. Buy stuff that you need. Whenever you just want to buy something, give yourself some time to reconsider whether it is worth buying.

20. Use the library often

Yes, the library is known for one thing; reading. Probably that’s the way you can cut down the purchase of magazines, newspapers etc. You can even borrow books and have access to free Wi-Fi, take advantage.

21. Consider a side gig

Side gig is a great way to make some extra income to supplement your regular salary. It doesn’t have to be several hours of work or at a physical office. You can even start a side hustle while employed.

Many websites and side hustle ideas can help you make money online. For instance, you can;

22. Save with a purpose

Don’t just save or invest, do that with specific financial goals in mind. These goals must be deadlines so as to motivate you. Example, I will pay off my credit card debts by a certain date etc.

23. Consider a lunch bag

Taking meals to work is one of the most undermined savings tip. This will help you save the $5 or $10 you would have spent on lunch at work. This tip works.

24. Do routine health checkups

Don’t focus too much on making money at the expense of your health. Take preventive health care serious. Its better safe than sorry. Late detection and treatment can be expensive.

25. Reconsider energy use at home

Cost of gas, water and electricity keep raising and you may have to audit your energy use at home. This can reveal several ways to conserve utilities and save thousands on cooling, heating and energy consumption hat home.

26. Go natural

Sometimes looking natural is cool and less expensive. I know ladies love artificial nails, hair, extensions, make up sets etc.

Yes, live life but at minimal costs, at least now that cost of living is super high.

27. Discuss finance with your spouse

If you are in a serious relationship or married already, you need to have money talks with your significant other. Discussing your finances will help you plan your financial goals together, eliminating unnecessary spending.

If you don’t know how to start, you can look at ; how to have money conversation in a relationship.

28. Use coupons and discounts

Coupons are a great way to get items for less or at no cost. Take advantage of discounted items that you need.

You can save those bucks and they will add up nicely overtime. Just keep a piggy bank for those bucks and see the magic.  

29. Consider money transfer options

There are a lot of secured and low fees money transfer platforms. As a saving tip, don’t stick to just one, skim through the options like CurrencyFair, Wise and others for free limited transfers.

Read More: Lower cost money transfer platforms.

30. Compare auto insurance outlets

Cost of insurance changes. So anytime your current auto insurance is due for renewal, you might want to compare the rates offered by other providers.

Compare the costs and choose the one that fits your budget. Probably the lower one.

Read More: Your business need these insurances

Let me leave you with this savings quote;

Look everywhere you can to cut a little bit from your expenses. It will all add up to a meaningful sum

Suze Orman

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