Whats the #1 Things You Can To Improve Your Finances?

[james.hendrickson]

All,

I've been thinking a lot about how to have the greatest positive impact on my personal finances. Thought I'd put this out to the group for discussion.

What's the single most important thing you can do to improve your finances?

I'll start...I'd say marry well.

[Drake3287]

Live within your means and don't spend money on things that are unnecessary in life while at the same time not cheating yourself on what you or your family enjoys. Add in moderately saving and investing and you'll come out ahead in the long run. I followed these simply rules my entire life as an average salaried public employee and I'm now a millionaire with zero financial worries. I only say this to prove that anyone can achieve financial independence if they put their mind to it and follow a plan.

[LivingAlmostLarge]

100% agree with drake. But how about pay yourself first. Start by paying yourself into a 401k and roth ira and don't hold back. Go contribute the maximum and figure out how to live on the rest. Paying yourself first always means you'll grow your salary but you can instead push it to savings and not grow into your income.

[bjl584]

Patience.

Seems like a lot of debt and financial issues comes from impulse buys, impatience, and the need for instant gratification.

[myrdale]

Read.

There are a lot of good books out there and some that aren't so good. I wasn't a fan of Rich Dad Poor Dad, but I really liked the concept of paying yourself first. That is to say make retirement investment a priority before anything else in your budget. I also liked the concept of assets vs liabilities.

Thou Shall Prosper is the other one I really suggest, though at this point its been a decade since I read it.

Most of Dave Ramsey's stuff is good enough but it is like baby food. If your starting from zero its a good basis, but with much common sense knowledge you'll surpass it fast (though sticking to common sense is one of his sell
ing points.

[Fishindude77]

Learning to "work" and being exposed to a "real job" early in life to realize that if you want experiences or things, you have to work for them.
Then, just live at a level below your income.

[ua_guy]

Refuse to let other people define your worth, or your destiny, for that matter. Obtain skills and education that command more money and put you in the driver's seat. And when you do, save money along the way.

[crazyliblady]

All,

I've been thinking a lot about how to have the greatest positive impact on my personal finances. Thought I'd put this out to the group for discussion.

What's the single most important thing you can do to improve your finances?

I'll start...I'd say marry well.

My #1 thing in improving finances is to be mindful about your spending. Don't spend because the latest gadget is on sale if you don't need it. This is especially true if you are in debt. And don't try to keep up with the Joneses or anyone else. They may be up to the necks in debt and not a good example. Keep your eye on the ball of financial freedom and off of the shineys.

My other tips that go along with the above include:
1) create a spending plan
2) create an emergency savings
3) save for irregular expenses that may occur once a year (car tags, car insurance, escrow, appliance repair/replacement, etc.)
4) when preparing to go grocery shopping, make a list of items you already have available and figure out what meals you can make from that first. Then, make the rest of your list based on what is on sale and available with coupons. Use your store's app for adding coupons and finding out about what is on sale
5) when going grocery shopping, don't go hungry and don't take the kids - take snacks with you
6) Check your receipt for how much you saved and transfer that amount to savings or make a payment on a debt with it
7) save for retirement
8) figure out your networth

[crazyliblady]

Read.

There are a lot of good books out there and some that aren't so good. I wasn't a fan of Rich Dad Poor Dad, but I really liked the concept of paying yourself first. That is to say make retirement investment a priority before anything else in your budget. I also liked the concept of assets vs liabilities.

Thou Shall Prosper is the other one I really suggest, though at this point its been a decade since I read it.

Most of Dave Ramsey's stuff is good enough but it is like baby food. If your starting from zero its a good basis, but with much common sense knowledge you'll surpass it fast (though sticking to common sense is one of his sell
ing points.

I hate to say it, but some people may need "baby food" because for them, maybe the concept of retiring or investing is too much for them. Maybe they are just trying to figure out how to make it to payday.

[cypher1]

Either pay yourself first or live below your means.

[myrdale]

I hate to say it, but some people may need "baby food" because for them, maybe the concept of retiring or investing is too much for them. Maybe they are just trying to figure out how to make it to payday.

Never mind the concept of retiring or investing. The concept of a basic budget is lost on most.

[crazyliblady]

Never mind the concept of retiring or investing. The concept of a basic budget is lost on most.

I totally agree. How to maintain a checking account, savings account, and budget should be taught somewhere before a person has a chance to really mess up. I know where I work, college students can do a workshop where they learn this kind of stuff, but it's not required. I learned anxiety about money at home and then practiced that a lot in my own life, and it took many years to get to a better point.

[ua_guy]

In 9th grade math we were calculating mortgage amortization tables and comparing loan terms, car loans, etc...as well as different interest calculations on investments. Relevant stuff. We never got into true personal budgeting, though.

That was a day in accounting class, in college. Prof skipped the day's lesson out of the book and said let's talk personal budgeting. Explained it using a T chart. Money in, Money out...it really can be that simple. We did a few sample budgets. Not that the concept was hard, but it got a lot of people to start thinking in those terms about their own situations, and how to run things like balance sheets for their personal lives.