Personal Finance

Here’s How to Use a Weekly Savings Plan to Improve Your Budget

June 9, 2020 By Kathryn Vercillo Leave a Comment

I recently attempted a no-spend month challenge. However, I didn’t succeed because I made several money planning mistakes. I considered trying it again for June. Then I changed my mind. Instead of doing a no-spend month, I’m trying something different. I’m using a weekly savings plan to improve my budget. This seems like a more practical approach for me given my current financial state.

What is a Weekly Savings Plan?

I should note that a weekly savings plan is very different from a no-spend challenge. However, in both instances, the point is to save money.

My goal with the no-spend challenge was essentially to spend as little as possible. Therefore, I would save as much as possible.

Similarly, a weekly savings plan is all about saving money each week. However, it may or may not be about “saving as much as possible.” Rather, it’s about setting a weekly savings goal and sticking to it.

This allows for more wiggle room than the no-spend challenge. After all, if I have $500 left at the end of the week, after paying bills, then with a no-spend challenge I wouldn’t spend any of that. If I’ve set a weekly savings goal of $300, I would have $200 left for spending. If it’s a struggle to not spend any money at all, that extra spending money can make things easier.

Benefits of a Weekly Savings Plan

Obviously, then, the benefit of a weekly savings plan as compared o a no-spend challenge is that you can still spend some money. Not having any frivolity throughout the course of an entire month can be daunting. It’s easy to fall off that horse, as I did last month.

In contrast, a weekly savings plan is a positive goal. “I’m trying to save this much” vs. “I’m not allowed to spend.” The positive twist makes it feel more doable. It is easier to stick with.

Of course, this would be true of any savings plan that’s framed as a goal. So what specifically makes the weekly savings plan a great idea? What’s most true for me, particularly as a freelancer, and particularly during pandemic time, is that it’s a very short-term goal that keeps resetting at the start of each new week. This is great because:

I don’t currently know exactly what I’m going to earn each month. Between changing jobs and clients making late payments due to their own COVID hardships, my income just isn’t clear. It’s a lot easier to see what I made last week or even to predict what I’ll make next week than it is to look at the entire month ahead. Therefore, a weekly savings plan makes a lot of sense right now.
I only have to meet a one-week goal. Therefore, the actual amount of savings could be tiny. It’s doable. And yet, it adds up. I get to save money for an emergency without feeling the pinch of setting aside too much at one time.
If I fall off course, I can easily reset the following week. Once I fell off course with my no-spend month, it felt like, “well, that didn’t work” and I kind of gave up. But this plan resets every single week. Hopefully, I’ll save the money each week. However, if I don’t, I can start again the next Monday.
The weekly reset also means that I can consistently recalibrate my goal. If it turns out that I’m not realistically able to save as much as I thought, I can review my budget. I can see where to make changes. And, if I’m lucky, and it turns out that I could save even more, then I can make a new plan in that direction as well.

How to Create a Weekly Savings Plan

So, does this sound good to you? Great. But how do you do it? Here’s my approach:

Where Do You Want to Put Your Savings?

What savings accounts do you already use? Is this where you want to put your money? I have two major savings accounts: a small one trough my regular bank and another high-interest savings account through WealthFront. I intend to put my weekly savings into the WealthFront account. But do what works for you, depending on how easily you do (or don’t) want to be able to access your savings.

Where Can You Pull Money From?

Before asking yourself how much you want to save each week, first ask: where could I stop spending? I combed through all of my subscriptions and spending habits to discover where it would be extra easy to cut back. For example, I was paying $19.99 per month for Lyft Pink. However, under quarantine, I’m not using Lyft as much. So, I can easily pause that account. Instead of spending that money elsewhere, I can put approximately $5 per week into my savings account.

Check to see if you can cancel the following things and redirect that money to savings:

Delivery service subscriptions including those associated with Amazon and Postmates
Streaming TV services such as Hulu or Netflix
Other monthly streaming services such as Audible or iTunes
Gym and spa memberships, especially if you aren’t attending during shelter-in-place
Online storage systems that you might not be using such as Dropbox or Google Drive

Similarly, it’s a great time to review where you might be able to reduce spending. For example, have you checked for discounts on your phone bill or cable bill recently? If you can save $10 or $20 per month, that’s money that can go into your weekly savings plan.

In other words, look at every single monthly subscription that you pay for. Cut out what you can. Divide the number you were paying monthly by four and add that to what you put into weekly savings.

Automate Your Weekly Savings Plan

As long as you aren’t on the brink of running out of money in your checking account, I highly recommend automating your savings. Once you’ve figured out how much you can save each week, set it up so that your checking account automatically transfers that amount weekly into savings. For example, if you can save $20 per week, change your account settings to automatically transfer $20 from checking to savings every Monday.

Do a Weekly Review

This part really helps. At the end of each week, review your money. Did you earn what you expected? Did you spend what you expected? As a result, did you save what you expected? If you have to adjust your weekly savings plan accordingly, do so.

Most importantly, check if you have any more money at the end of the week than you anticipated. If you do, set aside a portion of that as bonus savings for the week. You might want to create a rule. For example, “I will add 10% of any extra money for the week to my savings account.”

Can You Earn More In Order to Save More?

Whenever you create a savings plan, it’s important to also look at where you might earn more income. What could you do this week in order to have more money next week? Could you do a quick freelance gig? Maybe you could declutter and sell some items? You might put all of your extra income into your savings. Alternatively, you might put a percentage of what you earn aside each week.

Other Weekly Savings Plan Ideas

My approach is only one way to do a weekly savings plan. Here are a few other options:

Set a specific savings goal for the year, quarter, or month. Then divide that accordingly to figure out what your target weekly savings goal is. Plan your budget to accommodate this goal. This is especially helpful if you’re saving up for something specific such as a wedding or a vacation.
Try an incremental weekly savings plan. Save $5 in week one. Save $10 in week two. Then, save $20 in week three. You can keep adding it up throughout the year. Alternatively, you can start over at the beginning of each month. This is a low-key way to challenge yourself to save more. There are many variations on this. Check out the 26-week savings challenge and the bi-weekly savings challenge as two examples. The Daily Nickel Challenge is yet another variation on this.
You can also do the reverse of the incremental plan. You can start by setting aside a higher amount each week for one month and then a little bit less per week the following month. Here’s an example of this kind of plan.
Use a physical calendar to mark down what you get paid and what you “owe” yourself each week for savings. Here’s more info on that.

Do you prefer to budget by the week, the month, or the quarter? Why does it work for you?

What Happens to Savings Account When Tapped Above Limit

May 27, 2020 By Kathryn Vercillo Leave a Comment

Did you know that you are only allowed to make a certain amount of withdrawals from your savings account every month? More importantly, are you aware of the penalties that you might face if your savings account is tapped above that limit? If you don’t want to pay bank fees, or potentially even lose your savings account, then it’s important to make yourself aware of all of the rules and regulations around accessing your savings account funds. And in the face of COVID-19, there are a lot of changes to stay abreast of.

What is Federal Reserve Board Regulation D?

Chances are that if you aren’t well-versed in the intricacies of finance then you haven’t ever heard of Federal Reserve Board Regulation D. What is it? Well, this regulation limits the number of transactions that you can make from your savings account. In other words, while certain banks might have their own specific rules about this topic, all banks must meet the minimum requirements of Federal Reserve Board Regulation D.

However, this regulation was amended recently.

So, first of all, what is Federal Reserve Board Regulation D? This is a regulation that issues a lot of rules for banks. For example, one of the main rules was that “depository institutions” (banks, credit unions, etc.) must keep a minimum amount of money on hand so that customers can withdraw money from their accounts. The regulation also historically limited savings account transactions to six times per month.

Therefore, you could not transfer money from your savings account more than half a dozen times per month, according to this regulation. Your own bank and specific account might be even stricter. For example, you might have an account that only allows you to withdraw a certain amount from savings without incurring a fee. It might be fewer than six times per month (but because of Federal Reserve Board Regulation D it can’t be more often.)

COVID-19 Changed the Rules of Federal Reserve Board Regulation D

Up until very recently, that was simply the rule. You could withdraw money from your savings account up to six times per month without being in violation of Federal Reserve Board Regulation D. However, there’s a new amendment to the regulation that suspends this limitation. This suspension came about as a result of the financial strain that people are facing due to COVID-19.

Thanks to pressure from banking professionals, The Federal Reserve recognized that this is a tie of economic crisis in America. As a result, they decided to relax many of the rules established by Federal Reserve Board Regulation D. This means that the previous rules don’t currently apply. Therefore, banks can allow you to make as many transactions as you wish right now from your savings account. They do not have to limit your transactions to six per month.

What Happens To Your Savings Account If You Make Many Transactions?

Under the original rules of Federal Reserve Board Regulation D, banks could not allow you to make more than six transactions per month. Therefore, there were consequences if you did. In some cases, the bank would charge you a fee per transaction over that amount. This is typically called an Excessive Withdrawal Fee. In other instances, the bank would change your savings account to a checking account. Therefore, you would no longer earn savings account interest rates on that money.

However, under the new rules, those restrictions don’t apply. Banks no longer have to restrict the number of transactions that you’re allowed to make from your savings account. Therefore, most likely, nothing at all will happen to your account if you make more than 6 transfers from savings this month. That said, you want to check with your bank about their specific rules and regulations. Not only does each bank have its own rules, but many banks offer different types of savings account, so whether or not you can make multiple transactions could depend upon the type of savings account that you have.

Banks Make It Easier to Access Money During Coronavirus Pandemic

Chances are that your bank is going to take advantage of the opportunity to allow you to access your savings account with penalty. Many professional banking organizations have long called for an end to the cap on transactions anyway. Now that Federal Reserve Board Regulation D is suspended, they’ll let you make your withdrawals without penalty. This is just one of many ways that banks are trying to make it easier for you to access your money during the limitations of the Coronavirus Pandemic.

For example, many banks, including Ally Bank, are waiving a wide range of fees. They are waiving the “excessive withdrawal fee” of course since this is no longer a Federal Reserve rule. But that’s not all they are waiving. They are also waiving overdraft fees and fees for expedited checks. Many other banks have made similar changes.

Check With Your Bank to Find Out Current Rules

The most important thing that you can do is to check with your bank to find out about all rules related to fees. Since so much has changed in the face of COVID-19, you need to get the most up-to-date information. Ask your bank representative what changes your account experienced as a result of COVID-19. Ask specifically about reduced or waived fees. Make sure that you double-check the expiration date of those waivers.

For example, Ally Bank’s fee waivers currently run through July 18, 2020. Unless they decide to extend that, fees resume in mid-July. It’s importune to be aware not only of what you can do right now but when that might change again.

To that end, you might also want to set a news alert for Federal Reserve Board Regulation D. After all, this isn’t a permanent change. When the immediate financial strain of COVID-19 passes, The Federal Reserve may lift the suspension. At that time, limitations might once again restrict you to six transactions per month. With the news changing all of the time, this is an area of personal finance that it’s wise to stay abreast of.

Six Core Principles For Managing Your Personal Finances

September 17, 2019 By Susan Paige Leave a Comment

Personal finance pertains to managing, budgeting, saving, and investing money at an individual level or within the family unit. The process involves assessing your financial situation by monitoring your income statements and balance sheets. Then, you set your short-term and long-term goals, and create a plan to accomplish them.

Knowing how to manage your financial resources properly is a crucial life skill. It should be taught early to kids who already have basic knowledge in mathematics. Most essential is knowing how to save money so that it won’t be much of a chore when they become young professionals with their own income.

It’s good to keep on monitoring and reassessing your financial situation as you grow older. Here are some things you need to know about managing your personal finance:

Practice Self-Control

A lot of people have the misconception that they should reward themselves during payday. While there’s nothing wrong with splurging on food or other luxuries that are within your budget sometimes, falling to the impulse buying pattern regularly is a problematic thing.

Giving in to temptation all the time can significantly harm your financial well-being, especially when you don’t even really need the item that’s on sale. You should delay these types of purchases for a day and think about whether that pair of shoes you’re eyeing will be useful and won’t just add to the clutter in your closet.

Make Lifestyle Adjustments

Reduce frivolous spending by living contentedly. If you can’t afford a new house yet, you shouldn’t stretch your finances just to purchase one. According to Moneytaskforce.com, this type of thinking is prevalent in the younger generation because they believe it’s a good investment. However, one should also consider the depreciation in the property’s value, as well as other costs such as maintenance and repairs.

Also, you don’t have to live in a two-bedroom apartment just because you can. It’s better to accustom yourself to living simply in a pad rather than keeping up with the Joneses or the Kardashians.

These are a few other life changes that you can do to help you save money and become healthier at the same time:

Bike or Walk to Work – If you’re fortunate enough to work near your place, invest in a bike or walk to the office. Not only will you save on maintaining a car or paying for an Uber, but you’ll also get your daily dose of exercise. If your office is far from your home, you can still save money by using public transit.
Stop One Bad Habit at a Time – Tracking how much you spend each month can be eye-opening, but it’s also overwhelming when you think about where you should begin. Ditching vices such as smoking or drinking liquor can be an excellent place to start. For instance, if you spend 10 USD a day on cigarettes, you’ll end up saving 3,650 USD per year. Plus, you can allocate the amount for your savings to motivate you to kick the habit.
Make Everything at Home – It can be tempting to order takeout after a hard day’s work. However, buying food frequently can quickly add up, and you end up wasting your money, which could have been used for your nest egg. It helps to make your lunch and dinner in batches so you always have meals that you can reheat when you don’t feel like turning on the stove, as well as washing pots and pans. Plus, home-cooked meals are way healthier than fast food.
Create a Grocery List – When you decide to get cooking, you have to note down the ingredients that you’ll need. The list helps in lessening the time you spend in the grocery looking at products on the aisles, which reduces the risk that you end up buying more than what is in your budget.
Review Your Employee Health Benefits – Reread your contract again and check if your company offers employee health benefits. This can come in the form of discounts on gym memberships, rewards for reaching fitness milestones, and free programs that will help you quit vices or lose weight.

Know Your Net Worth and Track Debt

Your net worth refers to the combined value of your assets, both non-financial and monetary, minus all your liabilities. In theory, it’s the cash that you’ll end up with if you sold everything you had and paid off all your debts. While there’s no specific number that you should aim for, you must be able to track your progress yearly and see improvements over time.

This number is crucial because it allows you to view your current financial situation at a glance. There are three factors that you need to calculate first before arriving at your net worth:

Assets

Your assets include the value of your home, real estate properties, and vehicles. If you have a business, your company is also considered an asset.

You also need to collect the latest statements of other liquid assets, such as the funds in your checking and savings accounts, as well as other investments.

List your other valuable possessions like jewelry, heirlooms, and rare collections. Items worth 500 USD and above are considered assets.

Add the figures to get your total assets.

Liabilities

It’s also important that you track your debts because these are considered liabilities. The balance on your mortgage and car loans are examples of this financial aspect. List down their current balances.

Other types of liabilities at a personal finance level include credit card debts and student loans.

As with your assets, you need to add the balances of these debts to get your total liabilities.

Net Worth

After doing the tedious task of calculating your total value and debts, you can simply subtract your liabilities from your assets.

You shouldn’t worry too much about the number that you end up with, whether it’s small or large or negative. Think of this figure as a reference point for your future assessments.

Do a yearly check on your financial situation by repeating the process of calculating your assets and liabilities to get your net worth. Comparing it with previous numbers can help you monitor your progress and validate that you’re doing things right.

Stay Updated on Your Credit Score and Report

Your credit report is a comprehensive document that contains information on your past and current credit agreements. It gives lenders an idea of your total debt, the age of each account, and your consistency in making repayments.

Meanwhile, you can think of your credit score as a grade given to you based on the data in your credit report. It makes it more straightforward for lenders to evaluate the risk of allowing you to borrow their money. Typically, it’s a three-digit number that ranges from 300 to 850.

Three credit bureaus give you a credit score: Equifax, Experian, and TransUnion. When you ask for this financial score, you actually get three different numbers from these reporting agencies.

It’s crucial that you have a copy of your credit report and you know your credit scores. This way, you can assess your current financial situation and make remedies as well as adjustments on your lifestyle to improve your score.

Set a Budget

Creating a budget can help you stay on top of your finances. You should note down your regular expenses each month, such as your utility costs, rent, insurance payment, and your daily allowance to get a snapshot of how much income you need to stay financially stable.

Plus, you should also prioritize setting money aside for your short- and long-term goals. Dedicate a portion of your salary for your travel funds, but don’t forget about your retirement nest egg as well.

Know Different Saving Methods

Find the best money-saving ways for your financial situation. The same method won’t work for everybody, so you should educate yourself on the different techniques to find what’s best for you.

Here are some popular money-saving tactics that you can try out:

Figure Out the Percentage – A well-liked way to save a portion of your salary is to divide it by percentage. The 50/30/20 budgeting rule of thumb splits up your income into three parts. You allot 50 percent for your monthly expenses for necessities like your rent, groceries, and utilities, among others. Meanwhile, you set aside the 30 percent for luxuries, such as shopping, eating out, and your hobbies. Lastly, you put 20 percent of your money into your savings.
Set a Dollar Amount – For some, spelling out a specific amount is more helpful in keeping them on track with their financial goals. This is ideal for those on a tight budget because of its flexibility and customizability.
Collect Loose Change – This technique is perhaps the slowest way to save, compared to the other methods. You just have to keep the change that’s left in your pocket after each day. It may take some time to buy that particular item you’re eyeing, but it’s a start.
Join a Savings Challenge – You can find lots of savings challenges online. One of these is the 52-week money challenge where you pick a number among a list and attempt to save the specified amount for that particular week until you complete an entire year’s worth of savings.

Conclusion

Managing your personal finance doesn’t need to be an extravagant affair. You just need to have the right mindset and live within your means. You also have to determine your net worth, credit score, and credit report so that you have a holistic idea of your current financial situation.

Lastly, set a budget and stick to it. Educate yourself on the different money-saving methods and find the right one that works for you.

Why Women Investors Rule

March 9, 2019 By Jennifer Clark 2 Comments

It’s a man’s world in Wall Street…or at least, it used to be.

Women investors are rising up and giving their male counterparts a run for their money these days. (No pun intended.) Although women were previously known for holding off on investing and doing so in low-risk situations, lately and increasingly, women investors rule. How is this?

Kiplinger’s Personal Finance magazine’s April 2016 issue cover story goes into depth of the reasons ladies are killing it in the finance world.

To begin, women’s approach to investing is different than men. They’re better at matching their goals, they research to a greater extent, think long-term, and they stay composed during a downturn in the market. In fact, women seem less likely to behave erratically with their money, especially under pressure; that is, they change their asset allocation less as well as limit their trading.

While men can be excellent investors as well, as proven throughout the years, the magazine adds that the different approach women take has demonstrated much success and value. For instance, Kiplinger’s Kathy Kristof mentioned that an evaluation of 60,000 users on Openfolio.com, a social media site for the world of personal investors, showed that women lost less in 2015 when the market was down and gained more per point in 2014 when the market was exceptional.

In addition, the publication teamed up with InvestmentNews to survey 1,500 readers (53% men and 47% women) via e-mail to learn more about investing habits. The results can be found here.

As part of the article, Kiplinger’s also asked a group of successful women investors, including some from Wall Street, to provide their own investing advice. Regardless of your gender, everyone can benefit from these tips:

Know your investment. Choosing to buy into companies who make products and services you actually use and love (or could use personally) is a great starting point in finding attractive stock. Pick items that sell quickly and show much potential. To find some of these, though, will call for doing some research and thinking of yourself as the consumer. Don’t over-complicate things; start with what you know.
Keep calm and invest on. It’s important to take risks when investing, but it’s equally important to know your chances. Men are more likely to invest 100% of their assets in stocks, which can lead to wider gains; however, this is only true as long as they don’t strike out causing them to lose substantial value. Finding balance between risk and loss is one of the keys in funding success. As you look into organizations to invest in, find strong businesses with clear competitive advantages that are able to pay an abundant dividend or premium.
Plan ahead. Instead of worrying about competing with others in the market, keep your eye on the overall prize. Create and focus on your own individual goals and plan. It’s a myth that women are not concerned about a substantial return; they just are not allowing competition to stray them from their own efforts, which is attributed to their successes and rise in this field over the last few years. Having and maintaining goals in investing helps to prevent other noise from getting in to your head, and thus, preventing interference on decisions such as trading too early or too much.
Trade less. Men tend to trade more than women, which, some in the industry argue, is due to overconfidence and “jumping the gun,” if you will. Women also monitor their numbers less, which may also be a factor in this find. The problem with trading frequently is that it hurts investment returns over time.

These are just a few basic tips that can help you reach a higher gain. Even though the approach of women in this field produces notable results, female investors could also benefit from the strengths of their male counterparts. Together, men and women can make a great financial squad and should contemplate teaming up together in future decisions.

House Flipper Tips: Can You Flip Your Way to Retirement?

November 26, 2018 By Tamila McDonald Leave a Comment

Thanks to television shows like Flip or Flop, house flipping is in its heyday. In fact, many people wonder whether it is possible to flip their way to retirement, either allowing them to retire comfortably when the time comes or using it as a means to exit the formal workforce early. Here are some house flipper tips for retirement.

Can You Flip Your Way to Retirement?

In short, yes, you can flip your way to retirement. However, that doesn’t mean everyone will achieve that level of success, and many flippers who proceed without a plan actually lose money.

Shows like Flip or Flop, Zombie House Flipping, and First Time Flippers don’t always provide flipping newbies with an accurate picture of what it takes to flip a house successfully. While they touch on the financial aspects of the projects and mention some of the challenges, these shows are small glimpses into the reality of taking on a house to flip.

Plus, buying a house to flip is a massive investment. If something goes wrong, losing money is a possibility, at times to the tune of thousands (if not tens of thousands) of dollars.

However, with some care and proper planning, it is possible to flip a house successfully. Then, if you purchase another property and keep flipping, supporting your retirement through house slips is an option.

Consider the Costs of the House

To flip a house, you need to purchase a property that requires work to reach its full market potential. Additionally, you need to focus on homes that, once you pay for repairs and upgrades, is worth substantially more than you put in.

Often, the best way to begin is to find a property with potential and buy it with cash. This eliminates mortgage interest and certain fees from the equation, increasing your profit-making capabilities.

Being realistic and knowledgeable about the actual costs and potential earnings is also critical. Many flippers forget how much closing costs and realtor commissions can run, and they both impact profit margins.

Similarly, not knowing the market can come back to haunt you. You need a realistic picture of the homes potential resale value when complete, a process that usually begins by examining comparable properties, or “comps,” that recently sold in the neighborhood before you make a purchase. If you use an agent to buy the house you plan to flip, they can help in this area.

Additionally, you need to be able to fund all of the repairs and upgrades with cash. Again, this is about avoiding debt, interest, and fees, all of which can eat away at profits.

Plan for Repairs and Upgrades

You’ll need to set a budget for your flip and estimate the costs of repairing the property. This includes both products and labor, as most flippers don’t have the expertise to manage every kind of repair themselves, at least in the beginning. While cosmetic changes, like paint, are fairly easy to take on, electrical, plumbing, structural, and roof repairs usually require a contractor, and their labor comes with a price tag.

Before you complete the home buying process, get a home inspection at a minimum. You may also want to pay for specialty inspections, such as by having a plumber send a camera through the pipes or an electrician to evaluate the wiring, as issues behind the walls may not be caught during a traditional inspection. Then, you’ll have a solid idea of what repairs are necessary beyond cosmetic improvements and can get quotes for the work or plan for expenses for projects you take on personally.

Once the core work is done, you also need to take care when choosing other upgrades. While hardwood floors, marble counters, and soaker tubs may be the dream, you need to make sure that high-end finishes will land you a solid return. Otherwise, you risk over-improving the house for the neighborhood, and that can lead to losses.

How Do You Set a Sale Price?

Once the work is done, you usually list the home for sale with a realtor. By getting help from a professional, they can help you pick a suitable price according to current market conditions. Plus, they act as an objective third-party. Since you put in some much time and effort, you may have an emotional attachment that clouds your judgment, leading you to think the house is worth more than it is realistically.

How Do You Use Flipping to Retire?

Usually, you can’t fund a retirement with a single flip. Instead, once you sell one property, you move on to another, either using your profits from the first to reach higher value markets or investing your profits to save for retirement and sticking in the same zone.

Over time, you may even be able to slip multiple properties at once, accelerating your plan. However, it’s critical to always take the same level of care with each purchase and renovation, as falling quality will hurt your reputation and profit margins.

Have you ever thought about how to flip your way to retirement? Tell us about your experience in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

You Need These Top 13 Finance Books To Change Your Life

September 20, 2018 By Tamila McDonald Leave a Comment

Where are you in your financial journey? Maybe you’ve just landed your first job or your company has offered a 401(k). Whatever your journey is, there are tons of books that can help make it easier. Here are some of the best personal finance books of 2018 that can change your financial life.

The Total Money Makeover – Dave Ramsey

If being debt-free is your goal, it’s hard to go wrong with Dave Ramsey’s The Total Money Makeover. His tried-and-true approach is touted for its simplicity and effectiveness, and his brutally honest style doesn’t sugarcoat anything.

Not only can this book help you work your way out of debt, but it also gives you skills for avoiding it in the future. Ultimately, if you are struggling with debt and can only choose one book, this should be the one.

Your Money or Your Life – Vicki Robin and Others

Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence extols the benefits of frugal living, and not just from a financial perspective. It also shows how, by budgeting and saving, you can lead a happier life by having access to more choices.

The book focuses on learning to live within your means while planning for the future. Many people consider it a personal finance must-have. Just make sure you look for the most recent release (currently a 2018 update), as there have been multiple versions of this book over the years.

Personal Finance for Dummies – Eric Tyson

If you don’t know the basics of personal finance, starting with Personal Finance for Dummies is a smart move. Terms are clearly explained throughout, and the concepts are simplified to assist with learning. Plus, a broad selection of categories is covered, making it great for those who need a solid foundation.

The Index Card – Helaine Olen and Harold Pollack

The Index Card: Why Personal Finance Doesn’t Have to Be Complicated, is another book that focuses on the essentials. The tips are highly actionable, giving you clear direction for improving your financial life.

Additionally, the book avoids being long-winded so that you can derive value from it quickly. Plus, its very easy to digest, making it great for personal finance beginners and beyond.

The Automatic Millionaire – David Bach

For those who appreciate simplicity, The Automatic Millionaire: A Powerful One-Step Plan to Live and Finish Rich is actually a one-step plan to help you achieve success. While it almost seems too good to be true, it includes success stories focusing on individuals with modest incomes. Plus, it avoids headache-inducing steps like hardcore budgeting. Even better, you can get started without a six-figure income.

While the original version came out in 2004, it has since been updated. Just make sure to find a recent edition if you want the most valuable information.

Rich Dad Poor Dad – Robert Kiyosaki

Part memoir, part money guide, Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! was updated in 2017. The book includes money management tips for adults. It also offers information on helping your kids thrive financially.

Even if you don’t have a substantial income today, or are living paycheck to paycheck, this book can help you start on the path toward wealth.

You Are a Badass at Making Money – Jen Sincero

You Are a Badass at Making Money: Master the Mindset of Wealth is an exceptional book for learning how to evaluate your habits, such as things that may be hindering your financial success. It is filled with anecdotes and easy to understand concepts. It’s a candid and even humorous read that is chocked full of wisdom and insight.

Why Didn’t They Teach Me This in School? – Cary Siegel

A great book for teens and young adults, Why Didn’t They Teach Me This in School: 99 Personal Money Management Principles to Live By covers information that many kids don’t receive while they are growing up. The content is easy to digest and focuses on learning to manage money, ensuring it doesn’t control your life.

The Behavior Gap – Carl Richards

The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money, makes it easy to understand why so many people make mistakes with money. It shows how bad habits can develop, and helps the reader step away from the trappings that may have them stuck. Plus, it makes adopting a healthier mindset about money easier, which is something that can serve the reader for years to come.

The Millionaire Next Door – Thomas J. Stanley and William D. Danko

When most people picture millionaires, they imagine a glamorous lifestyle. However, the reality is actually quite different in many cases.

In The Millionaire Next Door: The Surprising Secrets of America’s Wealthy, you learn about the habits that helped people cross into millionaire territory and achieve financial freedom. Most of their techniques can apply to any person’s life, making this a great personal finance book for any collection.

All the Money in the World – Laura Vanderkam

All the Money in the World: What the Happiest People Know About Wealth, takes on the personal finance topic a bit differently. Instead of stressing pure frugality, the book discusses how to get the most personal value from your money by spending in alignment with your priorities.

Admittedly, it shouldn’t be the first book on most people’s list, especially those who are battling significant debt loads or lack any savings. But, if you have the basics in order, it’s certainly worth reading.

The Little Book of Common Sense Investing – John C. Bogle

Another option for those who have the personal finance basics down, The Little Book of Common Sense Investing explains why index funds are such valuable options. Plus, the information is very easy to understand, making it a great choice for those who are new to investing and want it to feel more accessible.

Money A to Z – Scott Alan Turner

Money A to Z is actually a children’s book. It uses the alphabet to teach kids about personal finance concepts, giving them a solid foundation in their earlier years.

Anyone with a young child should consider picking it up. After all, it’s never too early to start teaching your children good money habits.

What have been your best personal finance books of 2018? Tell us about it in the comments below.

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