9 Crazy Personal Finance Tips For Beginners – 2022
Table Of Contents - A Quick Glance
Every big investment starts with tiny little financial goals. Within the listed personal finance tips for beginners, let’s see how many can you make it with.
According to the queries and content we see on the web, people now are not simply looking for financial advice. But for the proper guidance to make more money in lesser time acquiring the SMART goals.
Within this info-need, we’d go through essential aspects of improving with some crazy personal finance tips for beginners.
1. Save 50% Of What You Earn Not 20%
I know this sounds crazy. Especially if you are living in a country like Australia. Your rent, food, and electricity bills are going to be way too high. If you compare the ratio of expenses over income. You might be earning good enough to cover those bills. No wonder why Australians still love to be in Australia!
Saving money for future investments relies on financial circumstances and members in the house. If you are living alone, you probably have to look after every single dollar to expend without compromises.
The next point will explain to you how you can half your rent and bills saving more.
This is nothing new! But have you done it yet?
We do understand why you love to stay alone. It could be a privacy reason, being peaceful or you just might be an introvert. All conditions are acceptable.
No matter what the reason is, if you want to save more or make some extra income, you need to share the apartment space.
If you are a primary tenant or owner of the house you’ve got the authority to set rules.
In terms of tenancy, it is quite essential to get a permit and sign in a contract for welcoming a new member into the house.
Being legal is being safe. Enrolling the new member also relies on real estate agency policies, whether they allow doing so.
On a continued contract basis, you’ll eventually get permission if you share the necessity.
Think again, when you are paying the monthly rent of $1200 alone. And a shared space lets you go dutch saving 50% of your rent and bills.
Go get registered and host your place in Airbnb or similar platforms.
3. Spend Less On Weekend Treats
We are humans, and we love to try out new cuisines, meet up with friends and spend more than necessary. Doing this once in two months should be fine. If you’re addicted to going out every weekend and trying out something new, it’ll be difficult to achieve the goal of saving 50% on monthly basis.
Controlling yourself from doing what you love is definitely going to be challenging.
Even I loved to go out every weekend and do dine in with family; Grab a cup of coffee and spend on random stuff.
These kinds of things give you pleasure for that moment. However, at some point, you’d feel the regression of why did you do that.
Seriously, this is not a punishment, but training yourself to be money-minded.
Save more to invest more. And invest more to build your empire– Aussie Guide
The initial sacrifice will help you in such a way that you’ll never have to compromise in doing what you love.
4. Reduce The Use Of Buy Now Pay Later (Payment Model)
The payment format of Buy Now Pay Later (BNPL) seems fascinating. Though the ‘0’ interest model looks appealing. But the overall payment model is actually a financial trap.
The design of such applications though guarantee customer satisfaction but it actually works in the favor of merchants instead.
For instance, when you visit an outlet to buy some baby products needed. You end you buying some extra stuff that may not be essential for the baby at the time. And still, you make a decision of buying it, setting your mind to use the BNPL app which could retain money some for now.
Although you would be paying the same amount in installments or even upfront. You’re still losing a part of the money that you never thought of spending additionally.
On the other hand, when a teenager gets addicted to using such apps. They unknowingly set their mind to spend beyond the limit on Day 1. And pay the rest off on Days 2,3 & 4.
This may seem to be a good deal for youngsters. However, they are unaware of the unfortunate debt hole they just created. Eventually, that would eat their money up in a gradual process.
BNPL Is Suitable For The Investors
Though this has nothing to do with the investment. Still, for person A, who wants to use this model for buying a pair of shoes. And also wants to buy a domain and hosting for a brand new website. He does not have many options but to choose one of those during the month.
So with the help of BNPL, he can actually buy a pair of favorite shoes by just paying the first installment. And rest of the amount can be used in investing in a domain and hosting in a smart way.
As in the next month, the remaining 3 installments can be paid off without compromising on future investments. And that he has already made in the website business.
The way you utilize such a payment model completely relies on you. I would suggest making use of it only when you’ve limited money in your pocket. And you’ve got to manage it between your NEED (livelihood or investment) and WANT (shopping for leisure).
So you can do one of the either:
- Reduce the use of BNPL and pay upfront instead; or
- Use BNPL only when you plan to invest money at the time. So the purchasing obstruction would be managed without comprosing with the investment activity.
So, make use of BNPL in a lucrative and productive way, without falling into a debt-bound.
5. Don’t Use Food Ordering Apps Unless Urgent To Do So
Using food ordering apps viz. Uber Eats, Door Dash, or similar are convenient for us to place an order. I do agree!
They make it a lot easier to choose our favorite food saving our hours in preparing, marinating, and cooking the food. The hassle of cleaning the kitchen is reduced as well.
But keep these options open only when you’ve unplanned guests at home. Or you’ve got a work deadline to complete. It’s quite understandable you even can’t afford to waste time going out, but instead, leverage it.
However, making a habit of placing online orders through these apps costs you more in delivering the food. The delivery charges in Australia are quite high. Sometimes you should rather prefer to go pick up the food instead of wasting $5 to $15 on each delivery.
Instead, set that amount of charges on average $10 every time saving it for something better.
If you think wisely, you could easily buy a domain name for $10-$15 with a renewal time of 12 months. Imagine saving more of such will help you buy hosting and set up your online business for such a low cost.
Be smart before letting go of the money.
6. Limit Going Extra Miles By Making Adequate Use Of Resources
Be it vehicle’s fuel, usage of gas and water, or storing up the extra food. Every small aspect will teach you to be economical in terms of being money-minded.
Driving extra miles for no reason would waste fuel. It’s okay to go the extra mile, just don’t make it your habit.
Simultaneously, unknowingly you may cook extra food. It’s not going to be wasted, it’s better you buy some containers to store the food in the freezer. This does not only save your money spent on ingredients but also save your energy and time from preparing a new set of food the next day.
7. Invest In What Others Don’t Care About
What does this mean?
Believe it or not, some people make treasures out of nothing. You’ve got to apply the same formula.
Let’s take the example of Flavia Guardia from Melbourne. She started a ‘Coffee Cup Recycling Business‘ by just spending $1230 as capital. Not a big amount though.
She does have a product line of giant bins to collect those trashed coffee cups. And the demand for those bins is rising.
Today she’s growing her business tieing up with bigger supermarkets and hotspots.
The recycling business might seem unattractive. But the value being provided is far beyond other consumable products.
Simultaneously, investing in the pet business might seem small. But the need for so is quite high in Australia. You just need to do an in-depth marketing analysis just before investing.
8. Cut Off The Coffee
Oh, I don’t mean to stop having coffee.
We can’t, even I love coffee. And I won’t stop taking it for any reason.
Cutting off the coffee basically means, don’t buy it.
Each cup of coffee costs you between $3 to $20. And every time you spend that amount just on a single cup ain’t worth it.
If you’ve got to make more, save more!
At home, you can buy a coffee-making machine if you’re addicted to it. Buying a machine is worth more than buying several cups of coffee in a month.
You may instead make a delicious coffee at home or at the office. Coffee is coffee, no matter where it’s made.
At the initial stage, people who work out of the office for some reason prefer grabbing a cup while on the go. This is absolutely fine. A sudden restriction on your ‘Want’ may not make your day!
All you need to do is, switch the cafe or petrol station. Look for a spot where you could get one at a cheap cost. Just like 7/11.
Generally, I loved to have Foodary’s coffee. It’s not cheap as the 7/11 but is delicious.
I’m literally unsure how 7/11’s $1 coffee tastes like?
But you can definitely give it a try reducing your expenses on coffee.
9. A Million Dollar Advice – Don’t Be a Miser Person
The overall ‘personal finance tips for beginners’ do not guide you on not spending on the family. Because the money you spend on family is an investment.
And when you get together, be it parents, siblings and close family or relatives. It’s absolutely okay to enjoy the treat once in a while. This is not going to take your savings away. But exchange for love and care.
I’ve seen people being extremely money-minded. They do rely on elder siblings and parents to spend every dime for them. The scrooges don’t spend on family at all. This is not going to take them anywhere. You’ll never see the misers being millionaires. Because the tightwads don’t love to put money in productivity bt save it. And simply saving has never resulted in a wealthy lifestyle.
Final Words On Personal Finance Tips For Beginners
You might not agree with all of those tips. Some sound acceptable and some beyond practicality. However, once you start working on each of the aspects. You’ll soon observe the difference in your spending habit, resulting in saving more.
Saving more here means investing more!
Besides knowing these 8 crazy personal finance tips for beginners.
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