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Credit Tip Tuesday #106-5 Smart Tips To Improve Your Finances | 8 Money Mistakes!

Written by Plastk #CTT | Jan 24, 2023 2:00:00 PM

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You just graduated from a university, entered practical life, and… BOOM!

All of a sudden your finances have become a mess!

If not right after graduation, then chances are even after 5 years of your 9-5 job, you are still clueless about your financial health.

All of this, if not fixed, can hurt your 30s or so goals, retirement planning, savings agenda… And much more!

You surely wouldn’t like to continue like this and instead enjoy a life free of loans and full of enjoyment, right?

This is exactly what the below-mentioned tips are going to help you with! So, let's dive straight in!

Why Do You Need To Improve Your Finances?

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Before we head to the main point, it is important to work on some mandatory reasons to build a healthy financial life.

In fact, even before that, you need to ask yourself why you want to work on your finances in the first place? Now, you might think why so? Why is it important to know the reason?

Like, it’s understood money is a necessity for living!

Of course, it is. But, does every living person have it? Sure, they might have some portions of it. So, is that enough for “living”? No! To survive, yes? That’s about it.

Here you have your reason why you need to work on improving your finances!

Moreover, your goal to expand your financial net income should be more than just eating out more often or getting your hands on a luxury bag.

Instead, your money-related goals should revolve around,

In short, your money should be working for you and not you working for your money. Trust us, changing your perspective regarding improved finances can turn out to be a game-changer for your future self!

5 Tips To Improve Your Finances

The points listed below will surely help you in more than one way. Or, to be precise, it will fix your financial base and take your money matters to a whole new level!

1.  Learn About Market Dynamics!

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The smartest and most important way to get real with your money is by learning about market dynamics.

Now, we are definitely not asking you to get admission to a university and start taking regular classes.

No, that’s definitely not the case!

Instead,

  • Get involved in a community
  • Keep up with the latest trends
  • Ask your peers how they are doing

On the other hand, not improving your financial literacy would mean you are stuck with methods that no longer serve the intended purpose!

2.  Make A Budget That Works For Real!

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“Yeah, this one is the same old rant”

You must have thought after reading the tip, right?

Well, no we won’t ask you to revisit your traditional budget’s old pages and face the stress of not achieving your financial goals again!

Instead, take a fresh start and read the updated agenda:

  • Opt for a flexible and optimized budget, like zero-based budgeting
  • Weigh your income and expenses
  • Eliminate unnecessary expenses
  • And invest the saved money into something useful

And repeat the same process after every month or two to keep aligning your actions with goals.

Also See: Personal Finance Review & Evaluation To Right The Wrongs!

3.  Simplify Your Lifestyle!

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Do you want to be financially smart? Yes? Then, your lifestyle needs to be changed! This is important and healthy too!

Let us explain:

You really don’t need to give in to those tempting fast fashion offers when you already have your wardrobe piled up with untouched clothes.

This is why always ask,

  • Do I really need it?
  • Where can I get a cheaper option?
  • Will this contribute to climate change?
  • Will this make or break my budget?

Similar questions like these help one pause and reflect on income and spending before splurging the hard-earned money at once.

4.  Make Financial Choices For The “Future” You!

It is natural to think that you have got only “today” so live it like it won’t ever come back!

While this may be true to some extent, it can pretty easily hurt your hard-earned money. This is why, make choices that your future self will thank you for.

Because although you can’t foresee the future, that makes it more important to prepare for it!

Here are some things that can help you work on your future while making sure your present self stays happy and financially content.

●     Choose the right card!

Are you looking for a card for the first time? Is your credit health in shambles? Does your credit history look more like a report card? Invest in a secured credit card!

●     Not opting for BNPL-like options!

If there’s one thing your future self will thank you for, this has to be it! No BNPL! Yes, they sound ‘beneficial’ but they are actually bad for the long-run.

 

See: Does Afterpay Affect Credit Score?

●     Prioritizing your loans, debts, and CC payments!

Plan your present by focusing more on clearing your debt so that you can live your future better.

●     Choosing interest-based income!

This is important for your savings account and all the money goals you have to retire early!

●     Starting as early as possible!

The best time to invest is now! Yes! Even if it's $5 you can spare or $50, you need to put them to good use. And, the earlier you start, the better investment profile you’ll have later.

To be honest, the list never stops, but you can really put a full stop to wasting your money.

5.  Monetize Your “Free” Time!

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Long gone are the days when you used to hear one of your uncles retired after 35 years of service from his company and ended up being too rich to imagine.

Now, modern-day folks have found new ways to expand the financial net.

One of these ways includes monetizing your “free” time.

For example,

  • Pick a hobby you are most interested in
  • Or, polish your existing skills
  • And learn to make a living out of those skills
  • If not, you can start a side hustle
  • And eventually, turn it into a passive income

Steps like these might feel too jam-packed at first, but once things start to fall in place and a steady cash flow becomes your monthly norm, you know keep optimizing your journey along the way.

Avoid Financial Setback In The Longer Run – 8 Mistakes!

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For added financial benefit, here are some mistakes from Plastk experts to dodge financial setbacks in the longer run.

It is worth mentioning that despite following the above-mentioned tips, you are still prone to some unnoticeable mistakes.

Why? Because you are a human prone to making mistakes! Still, you’re not a financial expert with endless wealth to back up your failures.

So, it’s necessary to know what mistakes you need to avoid! And these are:

  1. Not working on your mindset
  2. Relaxing too early
  3. Not trusting the whole process
  4. Not expanding your learning net
  5. Not seeking professional help when in need
  6. Not building a credit history
  7. Not learning to say “no” when not in a position to pay higher amounts
  8. Doing it because everyone else is going for it

These mistakes can really make or break your whole “getting financially stable” journey despite smartly following tips from experts.

Final Word

And that’s a wrap from our side on how to improve your finances like never before!

We hope that you found each tip pretty useful to your goals and can’t wait to implement them right away!

Lastly, do tell us which tip was your favorite and what you want to read next. :)