Personal finance tips are personal. No two situations are the same, and the best way to take control of your money and life depends on your lifestyle; hence why it differs for each unique individual. We have created a few guidelines on how to save money and make money that you can personalize to suit your lifestyle to save and make more money.
Make Personal Finance a Priority: The first step on how to save money and make money and taking control of your finances is making them a priority. Unfortunately, financial literacy is not a course work in school, nor is it a significant focus in the education system. That means you have to put in the work and be intentional about it. You can read personal finance books, listen to podcasts on money management, investing and taking side hustles, read personal finance blogs, join personal finance communities online, and consider a financial advisor or planner if you can.
Track Your Spending: One of the essential steps on how to save money and make money is understanding where your money goes. With Carbon, you can create a budget, categorize and track all your transactions, making it easy for you to know what category you spend most on and improve if there’s any need.
Create Spending Averages Based on The Past 4 To 6 Months: Creating spending averages is another major step on how to save money and make money. After tracking your expenses on Carbon for a couple of months, it is advisable to get an average on your regular spending habits. Do a review on the past 4 to 6 months worth of spending to take the average across the main budget categories like transportation, accommodation, food, light bill, tuition, investment, entertainment etc.
Pay Yourself First: This is an important step on how to save money and make money. I am sure you often hear this phrase and associate it with business owners only… Nah! It applies to everyone. It means you have to save and invest first before your regular monthly expenses. Don’t wait till you have spent 90% of your income to invest whatever is left. Create a Savings goal on your Carbon account and enjoy automated savings from time to time with interest.
Make a Plan for Your Debt: Making a plan on your debt is a major step on how to save money and make money. An anchor of your financial journey will be debt. You have to get hold of your debt and have a proper repayment plan. Prioritize your debts based on the interest rates and your financial situation. It is easier to pay off a little amount of your debt regularly than wait to pay a tremendous amount of money.
Build an Emergency Fund: An emergency fund keeps you above water should an emergency arise. Ensure you have at least three months of your regular spending saved up in an interest-bearing account. You can automate this on Carbon, and you earn interest on your savings and investments.
Side Hustle: Side hustles necessarily mean earning additional money outside your regular job whether through a passion, skill hobby, area of expertise or just hustle. There are several side hustles or businesses you could do these days. Make a list of your ideas, experience, skills, passion or network to help select what would be suitable for you. Other tips on how to save money and make money are: Estate, Planning Life, Insurance, Diversification, Invest in Yourself, Eat Out Less and Buy in Bulk if you Can.