From student loans to credit card debt, a lot of people these days are struggling to pay back the money they once borrowed from a bank, financial institution, or a friend. Not paying back the money can not only add to the interest but also destroy relationships. “55 percent of Americans with credit cards have debt,” says a report by CNBC. Here are four easy tips to manage your personal finances from the experts:
1) You Don’t Need to Be Frugal to Save Money- Ramit Sethi
In the age where almost every other personal finance tells you to find creative ways to save money, Ramit Sethi advises learning how to earn more instead. It takes work to save a just few bucks every day, you need to track coupons, use several discount apps, and so on a so forth.
So, Ramit advises you to invest that time into making more money. He also suggests automating your savings, have an automatic transfer set up to put a portion of your paycheck directly into savings each pay period. Or, you could just put some of your savings in a shoebox and forget all about it for the next 10 years.
2) Always follow the 70/30 Rule- Jim Rohn
Jim Rohn was one of the pioneers of the self-help theory. He was the one who came up with new and inventive ways to better the overall life without seeking help from others. His 70/30 rule states that one should save 30 percent of after-tax income and learn to live with the remaining 70 percent. The rule also states a small portion of the 30 percent income can also use invested or donated to charity
A lot of people believe Jim Rohn’s advice on money to be outdated as he was popular in the 80s, 90s and the early 2000s. But this is not the case. The amount of money you should save from your total monthly income depends on how much you earn. If you are barely surviving then 30 percent savings would do wonders for your future finances.
3) Don’t Spend Money You Don’t Have- Gary Vaynerchuck
With the rise of social media, Gary Vaynerchuk suggested that most people belonging to the millennials and Gen X demographic are brainwashed by social media influencers on Instagram. Many infuencers portray a life that they themselves don’t live. For a young person, it is essential to be aware of the traps laid ahead. It is not a good idea to spend your borrowed money on things you don’t need just to get a good picture for the ‘gram.
4) Always Focus on Learning and Acquiring More Knowledge on Money- Tai Lopez
Tai Lopez is an American entrepreneur with a net worth of 60 million dollars. Some say he inherited the wealth from his parent and while others think he is a scammer. But no matter your stance on him, the life and financial advice he shares on his YouTube and Instagram page is priceless.
Tai believes that the best thing you can do is to get rich in 2020 is to acquire more knowledge than your competitors. Read books, follow personal finance experts on Twitter, attend meetups, and cultivate good money habits.