Smart Finances: the Best Things You Can Do

Have you ever wondered what you can do to improve your personal finances? Fortunately, a few things will make your finances better than ever before. Creating a bright financial future comes down to making the right choices. Anyone can succeed in finances if they follow the right money saving habits. You want to grab the reins of your finances and steer them in the direction that you desire. Let’s have a look at the best things that you can do with your finances for a hard-hitting impact.

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Pay Off Your Debts


Before you start to have a true impact, you must eliminate all debts from your accounts. Debt will unnecessarily stress you out while keeping you stuck in place. One of the ways that people have taken control of debt is through the equity that is built up in the home. Taking out a home equity loan or line of credit will help you to consolidate all your debts under a single plan. At the same time, it lowers the interest rate to more favorable terms. Keep in mind, you need to check this for yourself to see that you can lower your interest rate by consolidating debt. You want to pay off your debt and remain free of debt. Once you pay off other debts, you will want to focus on paying off your mortgage. You can see a comparison here that looks at rates from major lenders.

Set Savings Goals


Smart savers will set money saving goals to reach a specific amount of cash by a certain date. You must set savings goals and work toward them each month with determination. Those who don’t set savings goals may find themselves working through retirement. They may find it either delayed or impossible to retire. Through saving regularly, you will set yourself up for financial success. Along with that, you will also want to make sure that you keep enough insurance. This will cover you for the event that you suffered an injury and needed help paying for it. Disasters can cost thousands of dollars and negatively impact your lifestyle. You want to keep enough insurance to maintain the lifestyle that you lead.

Never Too Late to Start Saving


You want to start saving as soon as possible, and yesterday was the best time. Today is the second-best time. Even if you start saving today, don’t get too hard on yourself thinking it is too late. Let’s take an example of someone who puts away $100 every month from 21 until they turn 65. Assuming they have a 6 percent annual rate of return, they will have $253,000 saved for their retirement. Someone who started at the age of 31, on the other hand, will need to save $190 per month to see the same rate of return. Still, they can reach a similar conclusion. It shows you the power of having time on your side. Not everyone can afford to put away that much, however, and you may want to save in a way where you don’t even notice it coming out. In that way, you won’t even pay much attention to it.

Travel Smartly


Being smart with your finances does not mean never spending money, it just means doing it with some intention. In almost anything you do in life, there are ways to cut a few corners, and travel is certainly no exception. One way to achieve this is to set a budget for a trip, and plan the trip in accordance with your budget, instead of picking a place based on your desires, and having to save and spend in accordance with what that specific location dictates.

A savvy way to see a lot, without spending a lot is backpacking. Since this is a highly popular form of travel there are plenty of guides and tips that you can easily access so that you do not feel like you are settling, or that your trip is going to be less than, because you are not staying in a fancy hotel or hopping on an airplane. Some of the other benefits of a backpacking trip that extend past your budget include getting back to basics in terms of survival needs, exploring and enjoying nature, being able to create your own timeline for activities.



This might seem like the antithesis of good advice, but sometimes when we obsess over things, we can muck them up. All the previous suggestions are true, you should set goals, you should have a budget, you should plan for retirement, but it should not be the only thing you think about all day, every day. It is important for your mental health that even if you find yourself in an extreme financial situation you have tools that you can utilize to take your mind off of it, if only for a short period of time each day.

When you are finding that you have no chill and the topic of money is taking over your entire being, think about getting outside help. This might look like a personal counselor, or it might look like a financial advisor. There is nothing wrong with acknowledging that you need some outside help in this element of your life. Not to mention, an objective outsider is going to be able to educate, coach, and support you, in ways you might not even be able to conceive of when you are in the midst of a panic or obsession.

Watch Your Risks


The cliché of you’ve got to bet big to win big may or may not be true, but what nobody in Hollywood films is telling you when they are quoting this famous adage, is that when you bet big, you also have potential to lose big. If you are interested in investing, for example, do not try to predict the market. Research your strategy, and only use funds that you are completely comfortable knowing you may never see again. Although investments can pay off and help push you into higher realms of financial freedom, they are not necessarily a mandatory part of financial health.