Cut up your credit cards. Take advantage of credit card companies for free points and cashback.
Don’t take out any debt. Leverage debt.
Make sure you have a good credit score. Your credit score doesn’t matter.
Do you sense a pattern here?
There is so much conflicting information on how you should run your personal finances that it seems like no matter what choice you make, you’re getting it wrong.
Self-proclaimed finance gurus lead you to believe that when it comes to money their plan is the best; end of story. Unfortunately, this isn’t true.
It’s hard to separate the good advice from the bad, and with good reason: we’re all different.
It’s time to stop taking everyone else’s advice to heart and instead do what’s right for you. Here are some tips.
# 1 – Know the Basics
Do you know where your money is going? Have you set financial goals for yourself?
Great! That’s all you need to know to get started.
There is no right or wrong way to go about creating a financial plan for yourself. Once you have the basics down the rest of the stuff is pretty much trial and error.
You’ll be the only one who knows if using credit cards is a good idea for you. You’re the only one who knows what type of side business you want to start – or if you even want to start one if the first place.
If you don’t know basic money management techniques – budgeting, beginner investing, or debt elimination strategies read a personal finance blog or pick up a book on personal finance.
# 2 – Know Yourself
Personally, I could care less about using credit cards for their reward points. To me the risk of using them and subconsciously spending more money because of it cancels out any rewards I might get.
But seeing as “churning credit cards” seems to be a new trend more and more people are jumping on the bandwagon.
So should you do it?
That depends. Are you 100 percent confident your spending won’t increase and you’ll be able to pay the bill in full? If so, great! Do it.
If not, steer clear.
There’s always going to be some type of trend going on – yes, even financially. So before you decide that you’re going to budget like everyone else, use credit cards, leverage debt, or buy penny stocks weigh the risks vs rewards.
Since each and every one of us are different, there’s no one size fits all. Do you.
# 3 – Cut Back on Information
I like information. I like to read books. I like to read blogs. I like to listen to podcasts.
But when you take on too much information something bad starts to happen: you don’t take action.
Let’s take investing for example. You want to learn how to invest so you read a few blog posts, listen to a podcast, or take a course….two months later you’re still soaking up information and haven’t opened up an investment account.
Don’t do this!
Once you’ve got the basics down just take action.
You don’t need to read 20 posts on “the best place to open up an investing account.” You’ll find all that out later.
Which brings me to our next point.
# 4 – Learn From Your Mistakes
Nobody’s perfect; we all mistakes. Luckily, there’s no better place to learn than from your mistakes.
You started a budget but it was so detailed that you couldn’t keep up – cut it back, make it simple. Your first stock picks tanked – figure out why and what you can do better next time. You learned that churning credit cards isn’t for you – well, stop doing it.
Most mistakes are fixable. And when you’re developing your own plan you’re bound to make a few mistakes. Learn from them.
When you’re making your own financial plan it should be about YOU!
It’s fine to read other people’s advice but that doesn’t mean you have to take it. Know what you want out of life and structure your personal finances to coincide.
It may take a little trial and error but that’s the only way you’re going to figure out what works for you.
What are your best tips when it comes to information overload?