Top 7 tips to personal financial success

Money can be tight and we never really know when we can run into financial problems. Some people may live pay-check to pay-check and spend all their money, others may be frugal and know where to put their money. What we want to do is help make your money work for you and help you allocate your spending so you know where to spend and where to save. Gaining personal financial success is what we dream of but many of us won’t make hundred of thousands of dollars and need to make do with what we have. We hope to give some points for you to think about.
1] Pay off all debt
Debt is the burden we carry, the thing we most dislike. Try to pay off your debts as quickly as possible before you start saving. Debt interest accumulates quicker than savings so pay them of first and then save and invest. Unless you can invest enough to make huge returns and pay off all your debt. Make it a priority to pay off all your debts and credit cards. Mortgages are different and long term so this is one debt that you should try to manage unless you can pay it all of.
2] Simplify Your Lifestyle
By this we mean live well but you don’t have to live an extravagant life style. Life within your means and buy what you can afford. If you don’t really need something then don’t buy it. Ex. Warren Buffett lives in a house he bought in 1957 for $31,500. Carlos Slim has lived in the same house for more than 40 years. Constantly pursuing things you don’t need keeps you chasing pay-checks and not a way to financial success.
3] Start ASAP
Look to your earnings and expenditure. What you have left over should be managing, saving, and investing, however limited. Avoid mistakes like throwing all your investment money into one stock. Spend less that you earn.
Look for the best savings accounts that offer the best interest rates. There are many saving accounts that offer good interest rates on savings up to a certain limit and there are many saving accounts no matter how much you can afford to save. Look to save at least 10% of your monthly earnings as this can really help down the line when you need the money. Investing in shares is more risky but can come with big returns so be cautious of this method unless you really know what your doing or you trust your investment vehicle.
Compound interest is what will make you rich. And it takes time.
4] Create a budget
This will really help you lay out what you need to spend your money on. Lay out what you earn and what you really need to spend your money on. This helps you follow your budget and spend your money where you allocated it. You need to know where you money is going so you can work out what you can save and invest.
5] Pay into your pension pot
Start paying into your pension pot as soon as possible if you have not already. Check with your employer to see what they can offer. Your employer may top up your pension as part of your benefits package. You get the tax back you’ve paid on all contributions, if you’re under 75, subject to an annual allowance. This usually goes straight into your pension pot. This is effectively a pay rise, plus there’s no tax to pay on that contribution (subject to annual allowances).
6] Only use cash to buy
People are using credit to buy everyday items like clothing, homeware and the like and are accumulating debt. Only use credit if you are improving your credit rating and paying back everything you spend on credit at the end of the month otherwise only use cash to buy. This will help you buy what you can afford and save you getting into debt and buying the things you don’t need.
7] Follow money rules
They save that 30%-33% of your income should be spent on rent or mortgage. 10%-20% should be saved. The rest should be used on bills, food, clothing and everyday items you need. You may need to sacrifice somethings in order for other things you may want. Buying cheaper brands or supermarket own brands can help save money.
The 50-30-20 rule puts 50 percent of your income toward necessities, like housing and bills. Twenty percent should then go toward financial goals, like paying off debt or saving for retirement. Finally, thirty percent of your income can be allocated to wants.

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