9 Personal Finance Tips to Help Improve Your Relationship with Money

In our busy lives, the monotony of handling our finances can be among our biggest challenges. We can even face financial crises due to poor money management and lack of emergency savings.

Consequently, financial management has become a necessity for keeping track of your spending and increasing your savings.

Your life could be much easier if you managed your finances and followed a budget.

Here are the 9 great, practical personal finance tips that can help manage your budget and money more efficiently:

1. Plan a Calendar for your Financial Records

Setting up a calendar of payments is the easiest and best way to manage your finances. A budget calendar helps you to plan your monthly spending and track your payments.

With a comprehensive budgeting calendar, you can track the following items:

Income: If you receive a regular salary through checks or direct deposit, add the respective amounts and dates to your calendar.

Bills: You can keep a record of your monthly expenses such as loan payments, car insurance premiums, rent or credit card bills.

Spending: Not your expected purchases at the grocery store, at restaurants, and other places you know you will visit. Include online purchases you plan to make.

Savings: To maintain a healthy savings fund, save a part of your income and deposit it into a separate account at your bank or credit union.

Creating a financial calendar is easy. Simply mark your earnings (if any) and expenditure every day or week. This way, you can analyze your expenses for the current period and create a more feasible plan for the upcoming months.

2. Spend Your Income Wisely

Spending your income wisely is as important as creating a financial calendar. You should always think of some creative ways to maximize your income through smart savings and investments.

For this, it is crucial to create a budget so that you can list out your necessary expenditures and curb your unnecessary purchases.

This way you can save a lot of money for your future rather than fall short in your savings efforts.

Note: You should take advantage of tax deductions in your taxes to save even more money.

3. Make Savings a Habit

You cannot expect miracles to happen overnight. Instead, you must make savings a long-term habit. After preparing your budget, do not simply set it aside. Rather, stick to it, and try to follow it to the fullest. Your budget will prove extremely beneficial by helping you to identify unnecessary, or impulse-type purchases.

There are days when you will want to buy your favorite things or food, but when you have a spending plan, you will be better aware of avoidable purchases. With enough savings in your account, you will feel motivated to follow your budget, leading to the development of a long-term habit.

Such savings can lead to positive results for your future investments and enable you to deal with many crises that come your way.

4. Do Not Rely on Long-Term Loans

Long-term loans inflict great pain on your financial stability. It is advisable you avoid unnecessary loans, including informal loans from family and friends.

Do not rely on long-term loans for purchasing unneeded items or experiences. Additionally, be direct in conveying “no” to your friends and family who hope or expect you to lend them any large sum of money.

Lending money to others when you cannot afford it can cripple your finances.

5. Set Priorities with Care

Prioritizing your spending is the key to financial success.

Everyone has their own priorities, and priorities can play what only seems like an oversized role in your life.

Set your financial priorities and needs at the beginning of each month, and stay committed to them. If you are aware of your needs and commitments, you will have a much easier time planning your finances accordingly.

There could be cases where you want to spend small amounts on entertainment even though you could use that amount for learning a new skill. Therefore, it is important to prioritize your spending so any extra money can be saved for more important purchases.

6. Indulge in “Learning”

Learning is something that continuously enhances our intelligence and creativity. We need to constantly learn from our mistakes to identify areas in need of improvement. There is always more to learn. There are always issues to fix. Deciding you are done learning is to decide to fall behind in all aspects of life.

Whether you seek out formal learning and training or you simply choose the trial and error method of life experiences, each will improve your capacity to stabilize your personal financial management. Look for ways to continuously incorporate new techniques, tricks, and tips to balance and manage your finances effectively.

7. Generate Multiple Sources of Income

Another excellent option that many entrepreneurs follow to achieve their financial stability is generating multiple sources of income.

Multiple sources of income mean more money and thus, more savings. Even if you are working full time, you might still consider taking on contract work in the evenings or weekends. You might even consider learning more about investing.

8. Maintain a Record of Your Daily Expenses

Keeping track of everyday expenses is crucial to understanding where you can save and where you might need more money. You should also stay aware of the various miscellaneous expenses you make in a day.

Once you have a record of your expenses, you can plan constructive strategies to cut your expenditure and increase your savings.

9. Leave the Bad Habits that Consume Your Money and Mind

Bad habits are not only bad for your health but can consume much of your money too. Avoid or at least minimize common bad habits like drinking and smoking. Such habits can easily cost you thousands of dollars a year, sucking money away from other purchases you might otherwise prioritize.

As long as your mind is on the right track, you can think of other worthwhile ways to lead a financially balanced life.

You might also consider eliminating other bad habits like eating out frequently, and spending on luxury items and home décor. Not spending over here is like saving over there.

Final Words

The above-mentioned tips can help you manage your personal finances more efficiently. There are always additional possibilities to be more creative and make changes in your strategy, but following these tips will likely change the way you think about money.

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  1. Services: DRS provides the following housing-related services: counseling that includes Homeless Assistance, Rental Topics, Pre-purchase/Homebuying, and Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase); Education courses that include Financial literacy (including home affordability, budgeting, and understanding use of credit), Predatory lending, loan scam or other fraud prevention, Fair housing, Rental topics, Pre-purchase homebuyer education, Non-delinquency post-purchase workshop (including home maintenance and/or financial management for homeowners), and other workshops not listed above.

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Disclosure to Client for HUD Housing Counseling Services

Debt Reduction Services, Inc. and its financial education arm, Money Fit by DRS, offer the following housing counseling and educational services related to housing, personal finance, and bankruptcy certificates to consumers:
  • Housing Education Courses: DRS offers many online self-guided education programs classified as Financial, Budgeting, and Credit Workshops (FBC), Fair Housing Pre-Purchase Education Workshops (FHW), Homelessness Prevention Workshops (HMW), Non-Delinquency Post Purchase Workshops (NDW), Predatory Lending Education Workshops (PLW), Pre-purchase Homebuyer Education Workshops (PPW), and Rental Housing Workshops (RHW). These courses help participants increase their knowledge of and skills in personal finance, including home affordability, budgeting, and understanding the use of credit, as well as predatory lending, loan scams, and other fraud prevention topics, fair housing, rental topics, pre-purchase homebuyer education, non-delinquency post-purchase topics including home maintenance and/or financial management for homeowners, homeless prevention workshop, and other workshops not listed above relating to personal finance and housing. Course details are found below under “Housing Workshops.”
  • Home Equity Conversation Mortgage (HECM) Counseling (RMC): Via telephone and virtual platforms, we offer the required HECM counseling nationwide in addition to in-person counseling in Boise, Idaho. We also offer in-home counseling options in thirty counties across southern Idaho for an additional fee to cover our travel and additional staff time costs.
  • Home Maintenance and Financial Management for Homeowners (Non-Delinquency Post-Purchase) (FBC): Clients receive counseling and materials on the proper maintenance of their home and mortgage refinancing. Clients can find help and resources by phone, in our Boise office, or virtually on all topics related to stabilizing their long-term homeownership.
  • Services for Homeless Counseling (HMC): Clients receive phone, virtual, or in-person (Boise) counseling to evaluate their current housing needs, identify barriers to and goals for housing stability, establish a path to self-sufficiency, and connect with emergency shelters, income-appropriate housing, and/or other community resources (e.g. mental healthcare, job training, transportation, etc.).
  • Pre-Purchase Counseling (PPC): Clients receive counseling through the entire homebuying process. Assistance may involve creating a sustainable household budget, understanding mortgage options, building their credit rating, and putting together a realistic action plan to set and achieve homeownership goals.  Additionally, clients will receive materials and resources about home inspections and other homeownership topics relevant to successfully maintaining a home.
  • Rental Housing Counseling (RHC): Via phone, in-person appointments (Boise, ID), or virtual platforms, clients receive housing counseling relevant to renting, including rent subsidies from HUD or other government and assistance programs. Topics can also address issues and concerns having to do with fair housing, landlord and tenant laws, lease terms, rent delinquency, household budgeting, and finding alternate housing.
DRS also offers the following services:
  • A Debt Management Program (DMP) for consumers struggling to pay their credit cards, collections, medical debts, personal loans, old utility bills, and past-due cell phone accounts;
  • The Budget Briefing and Debtor Education Certificates that are required during the Bankruptcy filing process;
  • A Student Loan Repayment Plan Counseling and application service.

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Through such services, DRS has established financial relationships with hundreds of banks, credit unions, and creditors such as American Express, Bank of America, Barclays, Capital One, Chase, Citibank, Credit One, Discover, Synchrony, US Bank, USAA, Wells Fargo, and others.

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The client is not obligated to receive, purchase or utilize any other services offered by DRS or its exclusive partners to receive financial education or housing counseling services. Alternatives: As a condition of our counseling services, in alignment with meeting our client services goals, and in compliance with HUD’s Housing Counseling Program requirements, we may provide information on alternative services, programs, and products available to you, if applicable and known by our staff. Alternative DMP services include negotiating better repayment terms directly with your individual creditors, paying your debts as agreed, or, in extreme cases, filing for personal bankruptcy. Alternative credit and education services can be found through MyMoney.gov or the Jump$tart Clearinghouse of online financial education resources. Housing counseling alternatives can be found through HUD at www.hud.gov/findacounselor.
Finally, you understand that you may revoke consent to these disclosures by notifying DRS in writing.

Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

RentalFair HousingPredatory Lending / HOEPAPost-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. creditbudgetinghomeless preventiondebt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).

Housing Counseling and Education Fee Schedule

 

Online Education Program Fees*

Homebuyer Education Course: $59 per participant

  • Self-paced course available here, our online housing counseling and education center. Certificates will be automatically generated upon completion of the course (approximately 6-8 hours)

RentalFair HousingPredatory Lending / HOEPAPost-Purchase (Non-delinquency post-purchase workshop, including home maintenance and/or financial management for homeowners) Online Workshops: $49 per participant

  • Approximately 1 hour each

Other Self-Guided Financial Literacy Webinars (e.g. creditbudgetinghomeless preventiondebt prevention): $0

One-on-one Counseling Fees*

Pre-purchase Homebuying Counseling, Rental Counseling, Post-purchase Ownership Maintenance and Financial Management: $75

  • Session by the hour

Reverse Mortgage/HECM Counseling with Required Certificate:

  • $200†

Credit Report Fee: Paid Directly by Client

*Fees for all but our online education courses and workshops can be paid online by debit card, credit card, or PayPal or in person by cash, check or money order to: “Debt Reduction Services, Inc.” Registration fees are non-refundable 24 hours or less before the start of an in-person course or workshop. Certificates are non-transferable

*Fees may be waived for households with income of 150% or less of that identified on the US Department of Health and Human Services Poverty Guidelines Page

†Home visit counseling is available in 30 southern Idaho counties for potential HECM borrowers at additional costs to cover our travel (IRS reimbursement rates apply) and staff time ($50 per hour or fraction there).