If 2020 taught us anything, it is that we need to be prepared for anything when it comes to our finances. We may be out of work for months, relying on government aid, or having to live off of our savings. We of course don’t want to do any of those things, so it is a good idea to try and boost our personal finances to have something to fall back on if the time comes! But, how are you going to do that? Well, don’t worry, we have a few ideas that we would love to share with you!
1. Don’t be afraid to stay home
This is the time to stay home and save money! Cooking from home, canceling your gym membership and working out in the garage, or having a glass of wine at dinner instead of at a vineyard, will all help to boost your finances. You will be able to still have fun and enjoy life, just from the comfort of your home. Plus, you will be keeping yourself and your family safe and healthy, which is priceless!
2. Get your budget all squared away
There are apps to help with this one, yes. But if you are a paper and pen person, don’t be afraid to get a special journal to document finances, to make sure you are on track with your budget. Once your budget is squared away, you can really make sure you are thriving in all areas of your finances. You will have every expense written out, that way you can keep track of what you are spending, and where your money is going every month. By seeing everything on paper, you can cut down on unnecessary spending and create heftier savings.
3. Start investing
Businesses like Robinhood will allow you to have commission-free investing, and they provide you with the tools to put your money in motion. You will be able to invest small amounts and watch them grow over time. Of course, the more you risk, the more you might earn as a reward. But we recommend starting small until you get the hang of things as you’ll probably have a lot of questions like ‘can you short stocks on robinhood‘ to begin with. Once you’ve got those answered, then it might be time to look at investing in larger amounts.
4. Ask for professional help
Professionals like the tax experts at Community Tax are there to help you with anything tax-related. If you aren’t sure what your tax offset number is, they will help to educate you and create a plan with you to get on track with your taxes and the IRS. This will help you to save money and boost your finances because you will no longer be paying the wrong amounts, they can help to cut down on penalty payments, and so much more. They are able to help you along the way, judgment-free.
5. Start a savings account
You may have an ordinary savings account, but we recommend getting a second that you never touch! You can have money directly deposited to it from your paycheck, or you can create an automatic transfer from one account to the other on a monthly basis. Having the money automatically transferred or deposited makes it so you never even see that money. This will help you cut down on the likelihood of spending it. Out of sight, out of mind.
6. Let apps help you
Apps like Acorns will let you invest a little bit, but will really help you to save money here and there with automatic bank transfers. You can have it rounded up after transactions that leave you with an un-rounded monetary amount—building a savings account. This will be like money you never see, too, because it will round up and transfer for you. You won’t be nervous about spending it, because it won’t be accessed instantly from your debit card!
No matter which method you choose, there is a savings plan out there for everyone. Be realistic with yourself when you pick which one is best for you, and stick to it! You (and your bank account) will be glad you did!
Maintaining a savings account is so important. You never know when an emergency will pop up. I hope to save more money this year.
Investing is the best advice in terms of boosting personal finances! Everyone should do it!
These are great tips. I didn’t realize that apps could help with your finances. I guess I’ve been out of the loop for too long!
Professional help is key when you’re doing finance work, in my opinion. Financial advisors can help you see opportunities you didn’t know were there.
These are great tips to boosting your personal finances this year! Especially regarding eating in and balancing a budget. I’ve recently begun preparing all my meals at home and it’s a money savor. Even using Instacart I save money versus eating out all of the time. Plus there is a gratitude in preparing the meal that makes it more satisfying than take out.
We have already been staying home SO MUCH! That being said, we have saved a ton of money from not traveling. We were in some financial anxiety because we are worried about our furnace dying, and it is nice to be able to save the money recouped from not traveling.
Such sage advice you’ve shared with us all here! Thank you for giving out all of this great information. 🙂
Managing finances in the pandemic situation is important now. Even we have saved a lot by not travelling, staying at home for work and my son’s school so less burning of car fuel, no expenses on dresses.
Personal finance is such a huge topic and we must be informed as much as we can about it. Your article is a good starting point to me bemuse I, I’m ashamed to admit it, haven’t payed much attention to my personal finances for a long time.
That’s started to shift though.
I always feel guilty when reading articles like these. I know I need to improve my finances but online shopping is just so darn tempting! But great read though and everything is on point!
what such a great tips. Knowing what you earned and where your money went makes you aware about your financial situation. Most of the times, when your expenses are high, a large part is accounted for by things such as entertainment and eating out, which are difficult to track. Keeping a check on expenses has two benefits.
Those are some great tips to keep in mind and focusing on finances right now is something that I’m doing. Investing and Savings are the main ones I am working on slowly but surely this year.