21 Personal Finance Tips That Will Change the Way You Think About Money


Before we share personal finance tips with you, it is important to learn what personal finance really stands for.

Personal finance is an art of handling the money you earn. It involves all money related matters whether it is your own expenses or household expenses. Personal finance is also about making the right decisions about earning, saving, investing and spending your money.

If you are still wondering which matters are directly concerned with Personal finance, let us make it crystal clear for you. In our day to day life, there are many things which are happening around us also involves personal finance such as credit cards life or home insurance policies, mortgages and vehicle instalment plans etc.

If you are planning to take control over your personal finances, then look out for short-term and long-term financial plans like:

  • Cash flow
  • Purchasing Insurance policies
  • Filling taxes
  • Savings account management
  • Retirement plans

Saving money is a hard job especially when you don’t have a solid plan sheet. How to earn, spend and save or invest your money would have a long-lasting impact on your life as well on the lives of others associated with you.

Unfortunately, there are hardly any schools who are teaching personal finance tips to its’ students. All we were taught while growing up was basic math.

Too many people spend half of their lives without knowing how to manage personal finance. They lack the ability to make a plan of their budget, expenses, and savings and have no idea how to invest the remaining finances. Planning for old age or retirement plans are nowhere to be discussed let along planned.

Here we are going to share top 21 tips on how you can manage personal finances easily and proactively.

#1 Formulate A Budget


First and the foremost tip is to formulate a budget according to your expenses on per week or per month basis. A well-devised budget is all that keeps you on track. It also helps you to track where your money is going and from where you can cut down your expenses etc. it is like a blueprint for achieving your money goals.

#2 Set Priorities

Decide which loan and mortgages you have to pay first. When tuning of your car is due. When are you going to pay for the house rent. Set priorities while managing personal finance. First things should be on the top of the list and catered accordingly.

#3 Take Record Of Daily Expenses

Buying a coffee while driving or walking to your office in the morning? Stopped by a McDonalds to catch a quick snack? Beware! These are the expenses which you make daily that eventually disturbs your budget. Cut down unnecessary daily expenses and save every penny you can.

#4 Admire Yourself

Save money and spend it wisely is a way of admiring and loving yourself. If you save today, it will help you out tomorrow.

#5 Set Smaller Goals

Setting long-term money goals often tend to fail. Setting small term goals helps you to achieve them more easily and quickly and it will also motivate you to save more and finally achieve your bigger goals.

#6 Use A Credit Card Wisely

credit card

If you are using credit cards for making purchases online on in the stores, purchase only if you are sure you will pay the complete bill all at once at the end of the month. Never buy anything if it only seems attractive. Buying unwanted things will only pile up your expenses and ultimately disturbs your budget.

#7 Find A Good Company

Find friends who are also into saving money and like to manage their personal finances because humans tend to follow habits found in their company.

#8 Never Lend Money

Never lend money to someone whom you don’t know personally or who will not be able to pay it back. Never invest in such scenarios except it is for close relations.

#9 Get The Right Insurance

It is very important to go for a right insurance policy. It includes medical, life and property and casualty insurance. God forbid if any unexpected situation arises, it would be more devastating if you have invested in the wrong policy

#10 Pay off Student Loans Faster

There are many opportunities available for graduates to pay off their student loans. It includes graduated repayments which progressively increase the monthly payments and extended repayments, which stretches the loan period to over 25 years. So choose a plan wisely.

#11 Plan For Retirement

elderly people

None of us ever think about getting old and retired. But believe me, it happens with everybody. So start setting some money aside for your retired life.

#12 Never Be Allured By Others

If you are shopping with friends, never be tempted or influenced by your mates. After all, it’s you who is going to pay for your shopping, not them.

#13 Start Saving Now

Tomorrow never comes. Start saving now. Don’t wait for the perfect time to save money. The right time is now.

#14 Depend On More Than One Source Of Income

Warren Buffet said; “Never rely on a single source of income. Make investments to create a second source”. Choose any second source of income whether it is a second job or investing in the stock exchange.

#15 Never Overspend On Gifts


No matter how important he or she to you, never spend a fortune on gifts. It will bring you nothing but a huge bump in your budget.

#16 Spend Less Than You Earn

Always manage your expenses and spend less than you earn every month. For example, if you earn $13000 per month, spending $15000 would not be wise.

#17 Plan Dinner Menus Beforehand

picture of dinner

Plan your monthly dinner or food expenditures at the start of the month. This is how you can reduce as well as save food expenses.

#18 Always Pay Bills On Time

This will not only save your time but will also save unnecessary late fees. So pay beforehand or opt for auto payments option.

#19 Take Professional Courses

Take professional courses to groom yourself professionally. This could be online or by attending classes. Invest in yourself so that you can grow professionally and can earn more.

#20 Use Coupons When Buying

picture of coupons in a pile

Utilize coupons whenever you can. It will save you a lot of money. Take advantage of internet promotional codes and coupons as well.

Being savvy and consulting the right consumer guide that advertises coupons and flash sales or clearance deals can mean that you are able to get high-quality brands.

Coupons have a reputation for being something for low-end brands. Before you buy anything online, do a quick search to see if there is a coupon for the item you want.

#21 Take An Overview Of Your Personal Finances Every Once In A While

Overlook and review your personal finances after every other month. This way you can increase or decrease certain expenses or realign your priorities.

Remember, no one is in charge of yourself but you. Follow your own rules and make the right financial decisions for yourself and for your family. No one cares about your money but you. So use it to create your own financial future.

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