My Personal Finances Tips for 2022
Working for financial security is a long process, patience and consistency is key here. That should not prevent one from developing required behaviors, but rather serve as an incentive to begin doing so.
According to article that I read, it takes an average of 66 days for a behavior to become a habit, or a part of your lifestyle/routine. So now is the best time to start working towards our personal finance goals and instilling some financial discipline. Here are some habits to start develop your financial journey in 2022.
1. Track Your Expenses Every Week
By tracking your expenses, you’ll understand where your money goes every month. A well-planned budget for your week is a good way to start and this will be your financial tool facilitating your financial goals, making them become a reality. You can use microsoft excel or other cool apps out there to keep track of your expense or budgeting.
2. Start Investing
If you’re still under 30, you have an asset callled ‘time’ and that is why you should start invest as soon as possible. It is never early or too late to start investing.
Investing is one of the most effective strategies to accumlate wealth and achieve your financial goals. If you have a lengthy time view, you will require growth. Allocate your assets according to your risk tolerance and objectives.
3. Pay Yourself First
I implement this advice from “Rich Dad Poor Dad” book. I recommend you to read this book if you’re seeking for financial literacy and investing knowledge to broaden your prespectives about personal finance.
Every time you get paid, set aside a percentage of your earnings. This should be automated. We frequently spend everything that is readily available. If we put all of our money in a bank account, nost of us would undoubtedly spend it all. Transferring a portion of your income into a more difficult-to-access account allows you to leave that amount to grow. And, through the mighty power of compunding, this can add up to a sizable savings account over time.
4. Invest in Yourself
If you’re in your early career like me, I suggest you really consider this type of investment. Pick up a new skill or upgrade skill in your domain or interest by taking classes on udemy, skillshare, or any other learning platform. Learn more about investment and money management by buying books such as Psychology of Money by Morgan Housell or Rich Dad Poor Dad by Robert Kiosaki.
By investing in learning high income skills or learning financial literacy, it will pay you more in the future because remember if you’re in your early stage career, you have a bunch of assets called ‘time’. You may also see improvements in your productivity and pleasure if you invest in yourself.
The first step toward financial stability is to prepare ahead. Setting small goals and embarking on the road is key. The fundamentals might help you get off to a good start on your financial path.