1 Year Anniversary: ​​25 Extreme Personal Finance Tips | by Destiny S. Harris | Nov, 2022

1 Year Anniversary: ​​25 Extreme Personal Finance Tips |  by Destiny S. Harris |  Nov, 2022

Prepare to smash your financial goals in 2023

Photo Credit: cottonbro studio

It’s been a whole year since this viral article, but the tips still stand. As we head into December, we are inching closer to the holidays, which means we’re more likely to spend on gifts or get wrapped up in emotional and “treat-yourself” spending habits.

Stay on track. Stay the course. Plan out your financial strategy for 2023. Now is the time to get your plan strategized and written down so you have a clear template to follow for the new year.

Keep your rent/mortgage payment 10–15% (or less) of your net income.

Avoid car payments. If you decide to take on a car payment, have the cash (in your bank account) to buy the car outright.

Keep your net worth positive — at all times.

Always have a minimum of 5 streams of income. But aim for at least 10+ streams. Never depend on one source of income. Diversify. Diversify. Diversify.

Daily budget. Keep track of your money daily. Always know what is happening when it comes to your money. Be in the know.

Stay in charge of YOUR money. Never leave the responsibility of your money up to someone else.

Pay for everything via credit card to earn money or points back on purchases, and increase your financial security.

If you can’t use a credit card responsibly, stay away from them altogether.

If you have kids, open up a retirement or investment account for them the day you get pregnant, adopt, or start prepping to have your kid. Why not set up your kid to be a millionaire before 30?

Buy only what you truly desire. Don’t buy to impress. Don’t buy because everyone else is buying. Don’t buy to fill a void. Don’t buy things you won’t use consistently. Always buy intentionally.

Increase your income yearly. Never go a year without increasing your income. Get creative.

Repair your car instead of buying a new one.

Keep an eye on your credit score and credit health to ensure you’re the only one using it.

Until you reach financial independence, live with family, friends, roommates, etc., to save money and live below your means. But you may want to continue living with others even after achieving financial independence. Extra cash flow always feels good.

Be cautious of costly habits.

If you have an employer, max out your 401k match, and contribute the max amount per year. Find a way to live off the rest comfortably.

Spend substantially less than you earn. Always have money left over at the end of the month. Avoid living paycheck to paycheck at all costs.

Be careful who you shack up with, partner up with, or date; ensure they are money conscious. Make sure the person you are with has a healthy relationship with money. Maintain firm financial boundaries. Do not let others divert you from your financial goals.

Don’t have kids you can’t afford.

Intake copious amounts of financial advice, but make your own decisions about which advice to follow. But the one piece of advice you should always follow is: Invest now. Invest early.

If you have debt, invest while you pay off your debt because one thing you cannot get back is time; and compound interest thrives off time.

Never cease your financial education. Read books and articles, attend seminars, listen to podcasts, and chat with financial experts.

Be sure consistently obtain new financial knowledge. When you know better, you do better. The earlier you can learn about money, the better off you will be financially.

Don’t spend money to impress people, not even yourself. What a waste this is.

Don’t live in states you can’t afford. Instead, take a vacation to the location.

Avoid student loans if you can. Aim to go to school for free, with scholarships, jobs, programs, etc.

Create a business; this is where real wealth begins.

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