The best personal finance advice I've ever received combines three timeless principles: plan, plan, plan; don't put all your eggs in one basket; and pay yourself first. These concepts have been instrumental in helping me manage my money more effectively. Planning has reinforced the importance of having a clear roadmap for my financial goals. From budgeting and building an emergency fund to retirement planning and investment strategies, preparation has been key. Having a plan has allowed me to feel more in control of my finances, avoid unnecessary stress, and adapt to unexpected situations. For example, when I wanted to purchase my first home, a detailed financial plan ensured I could save for the down payment without sacrificing my long-term retirement goals. Diversification-avoiding putting all my eggs in one basket-has been a cornerstone of my investment approach. It reminds me not to rely too heavily on a single asset or income stream, which helps mitigate risks during market volatility. During market downturns, having a mix of stocks, bonds, and alternative investments has provided both stability and growth. This principle encourages me to avoid emotional decisions and maintain a balanced approach. Finally, paying myself first has shaped how I prioritize savings and investments. By treating my future self as a "must-pay bill," I consistently contribute to my retirement accounts and savings before spending on non-essentials. Automating a percentage of my income toward these goals ensures that I build wealth consistently over time while living within my means. These principles work in harmony to create a solid financial foundation. Planning sets the direction, diversification mitigates risk, and paying myself first ensures steady progress. Together, they've empowered me to confidently manage my finances while achieving personal and professional milestones.
The most valuable piece of personal finance advice I've ever received is to track my spending. I began doing this nearly a decade ago, and the results were eye-opening. Even now, I uncover surprises and gain fresh insights into my habits. Many people with disposable income have a general sense of how they are spending money, but few actually take the time to check if their assumptions are correct. As a financial educator, I recommend reviewing at least one to three months of your recent spending by going through your credit card and bank account statements. Try to focus on "normal" month, skipping the holiday season or any time you moved or experienced a major life change. Then, categorize your spending in a way that makes sense to you. This exercise can teach you a lot about your habits. Don't beat yourself up over purchases or lifestyle creep. Instead, use the insights to look ahead and ensure that your spending aligns with the life you truly want to create.
The best piece of personal finance advice I received was to pay yourself first. I've made this a priority in my life and it has been key to growing my net worth. Out of college, I was making less than 30k but I got into the habit to move a little into savings after each paycheck. As my income grew, I was able to save more and then invest in retirement accounts and some years maxing them out. I was lucky in my early 20s to understand compound interest and saw the impact of savings/investing early as opposed to waiting when I got older. By paying myself first (either in savings/investing) I lived off the rest not the other way around. Therefore it helped to make financial decisions easier. I could plan ahead for vacations or feel confidently politely declining an expensive dinner outing. Now, I am able to reap the rewards of paying myself first by having more options like leaving my W2 job and starting my own business supporting parents to have clarity and be empowered with their money as a financial coach.
I grew up as a migrant farm worker. You know, all that moving around meant that our income was inconsistent, and there was a lot of uncertainty. Because I saw my parents and how they viewed their money, you know, I grew up with this saver mentality. There wasn't a safety net. You had to make sure you saved. You had to be prepared for everything. So, although looking back, I see that's a great trait to have-to become a saver-it's also a very, very narrow view of how money works. My dad was always preaching about, you know, there's a difference between the things that you need and the things that you want. And it really stuck with me, especially since I had to work so hard and do such backbreaking work to earn that money. But looking back, I think for me, it was a very empowering lesson. You know, right now, I know the things that I really, really need to have in life and the things that I just want to have in life. That lesson really helped me compartmentalize how I handle money. You know, my background tells me you need to save, you need to save, you need to save. But, you know, my two finance and business degrees tell me, hey, think about the compounding effect. Think about taking a risk. Life has really taught me that there is room for both those things. They're not separate and apart. I just needed to learn to shift from this survival mode mentality to, okay, how do I make this money work for me? How do I find ways to make money work better and longer for me?
The best piece of personal finance advice I've ever received was about not spending more than I earn. It sounds simple, but it's easy to forget when things are moving fast. I've found that sticking to a budget and setting aside savings is the most effective way to stay in control. When you live within your means, it's not just about avoiding debt. It gives you freedom and reduces stress. Building savings is key, but it also means not being afraid to say no to things that aren't in your plan. Cutting out unnecessary spending or focusing on your needs instead of your wants can give you financial security in the long run. I've learned this helps keep me focused and calm in any situation. It's not a quick fix, but it works.
I like this piece of financial advice I received: "Pay yourself first." This simple idea completely changed how I handle my finances and how I approach saving. Before, I'd save whatever was left after paying my bills-usually, that meant little to nothing at all. But now, saving is my top priority. Here's how to do it: automatically move a percentage of each paycheck into a high-have savings account and a retirement fund right off the bat. This way, you don't even have to think about it. Before I spend a dime on going out or buying something new, that money is set aside. I love this strategy because it's really flexible. You can start off by saving just 5% of what you earn and increase it as you make more. It's all about making saving a habit. This technique has helped me stay on track with my financial goals, even when unexpected things come up. Thanks to this method, I've managed to build a solid emergency fund, watched my investments grow, and now feel confident about my retirement plans. It's shown me that managing your money wisely and consistently matters far more than how much you make.
The finest advice I've ever heard on personal finance is to "Pay yourself first." This is setting aside a certain amount of each pay cheque for investments or savings before it is spent on other things. By putting this plan into practice, I was able to prioritise long-term financial objectives, cut down on wasteful spending, and accumulate steady savings. In the end, it improved my money management and financial stability by changing my perspective from saving what's left over to making saving a habit that cannot be compromised.
Living below your means simply means spending less than you earn. It's a simple concept but one that many people struggle with. In today's consumer-driven society, it's easy to fall into the trap of living beyond your means by constantly upgrading possessions or indulging in unnecessary purchases. However, by living below your means, you are able to save and invest more of your income for future goals or unexpected expenses. You also have a cushion in case of job loss or other financial setbacks. To apply this advice, I created a budget and stuck to it religiously. I tracked my expenses and made sure they were always lower than my income. I also avoided taking on unnecessary debt, such as credit card debt or excessive car loans. Living below my means has not only helped me achieve financial stability but also allowed me to build wealth over time. By consistently saving and investing, I've been able to grow my assets and increase my net worth.
The best personal finance advice I've received is to live below my means-spending less than I earn. This simple yet effective approach has helped me save for emergencies, investments, and retirement while reducing financial stress. By building a financial cushion, I'm better prepared for unexpected expenses and have greater peace of mind. Another crucial piece of advice I've received is to create a budget and stick to it. By tracking my expenses and setting limits for each category, I'm able to identify areas where I can cut back on unnecessary spending and allocate more towards savings or debt repayment. This has significantly improved my financial discipline and helped me achieve my financial goals. Investing in oneself has also been emphasized as valuable personal finance advice. Whether it's through education, improving skills, or starting a side hustle, investing in myself has allowed me to increase my earning potential and diversify my income sources. Additionally, continuously learning about personal finance has given me the knowledge and tools to make informed decisions about my money.
Pay yourself first - the idea is to treat your savings and investing goals as the first "bill" you pay ensuring that you're consistently building wealth or preparing for future needs before addressing other expenses.
In my years of experience, I have come across some great personal finance advice that has helped my clients manage their money better. However, the best piece of personal finance advice I've ever received is to "pay yourself first." This simple yet powerful concept was introduced to me by a successful investor who emphasized the importance of saving for oneself before paying any other expenses or bills. At first, it seemed counterintuitive as we are generally taught to prioritize our expenses and bills before thinking about saving. But after understanding the logic behind it, I realized its effectiveness in managing one's finances. The idea behind "paying yourself first" is to treat your savings as a fixed expense that you must pay every month, just like any other bill. This means setting aside a certain percentage of your income for savings before allocating it towards any other expenses. By doing so, you are prioritizing your financial future and ensuring that you have enough money saved for emergencies, investments, and retirement.
I have had the opportunity to meet and work with various clients who come from different backgrounds and have unique financial situations. Through my interactions with them, I have learned that personal finance is one of the most crucial aspects of our lives, and it's important to seek advice from those who are experienced in this field. One particular client stands out in my mind when it comes to discussing personal finance advice. They were newly married and looking to purchase their first home together. During our initial consultation, they expressed their concerns about managing their finances as they were both working full-time jobs but still struggling to save enough for a down payment on a house. Upon hearing this, I recommended that they follow the 50/30/20 rule of budgeting. This rule suggests allocating 50% of your income towards necessities such as housing, food, and transportation, 30% towards wants like entertainment and dining out, and 20% towards savings and debt repayment. Initially, my clients were hesitant about this approach as it meant cutting back on their discretionary spending. However, after a few months of diligently following this budget plan, they were able to save enough for a down payment on their dream home. The best piece of personal finance advice I have ever received is to prioritize saving and investing rather than focusing solely on increasing my income. This advice has helped me manage my money better by teaching me the importance of living within my means and setting aside a portion of my income for future financial goals.