- Money advice from those you trust can steer you in the right direction of reaching your short- and long-term goals.
- Some of the best money advice you can receive may come from an expert or someone who has successfully reached an important financial milestone.
- Here, 10 people share the bestmoney advice they have ever received, like understanding needs versus wants and living on less than you make.
Your relationship with money takes a lifetime of maintenance. Making smart choices throughout your life can lead to financial stability and growth, as well as help you reach your short- and long-term goals.
Just as you may go to friends or family for advice after a fight with your partner, you may also seek out financial advice from those around you.
“Some of the best advice is from people in your social circle who have overcome debt or made major financial improvements,”Andrea Woroch, a consumer expert, told Business Insider.
However, always keep your situation in mind, because different money saving and spending practices could work differently with your particular lifestyle. “Compare options and decide what’s best for you,” Woroch said.
Here, 10 people share the best money advice they have ever received.
Live on less than you make
Live on less than you make. If you do, you will always be able to save something – even if it’s just a little.
– Cornelius Davis, 44
Track your cash flow
Track your incomings and outgoings on a daily basis and look at your bank account to ensure that you’re not spending more than you’re making. Also, identify anything you are investing in that you aren’t using and cancel it. I learned this from money mindset mentorDenise Duffield-Thomas.
– Ruth Kudzi, 40
Don’t up your spending when you get a raise
Do not up your spending when you get a raise – up your savings instead. Also, make sure to save something from every paycheck. Just get in the habit and funnel a set amount directly into an investment account, because you do not spend what you do not see.
– Paige Arnof-Fenn, entrepreneur
If you can’t use cash, you can’t afford it
My best money advice came from my father, who had his own business. He said, “If you can’tpay cashfor it, you probably don’t need it.”
– Brent McClure, 42
Know where every cent is going
The best money advice I’ve ever received was to know where every cent of my money is going. This way, I’m in control of my spending and can make changes if necessary.
For example, if you decide you’d like tosave more money, you can look at expenses that are not necessary, like eating out, getting a snack at a convenience store, or buying alcohol and cigarettes. Cutting back on those purchases would allow you to save a good bit of money over the period of a month.
– Dr. Ashley Hampton, 38
To reduce your debt, speak to your creditors
If you find yourself in financial trouble, speak to your creditors as soon as you can, as they will usually want to come to an agreement.
Understand ‘need’ versus ‘want’
The best advice I have ever received about money is to truly understand “need” versus “want.” Do you reallyneedsomething or do you justwantit?
Learning this has served me well, as I was successful in paying back $US74,000 ofstudent loan debtin less than 24 months, and it continues to serve me well as I start to pay off my MBA debt.
Matthew W. Burr
Pay off your credit card balance every month
Pay off yourcredit card balanceevery month. If that’s not possible, stop buying stuff you cannot afford – the interest is not worth it.
Get an accountant
My brother, who is a former accountant, advised me early on to employ an accountant as soon as I could afford to – they are the specialists, not you.
Buy your car with cash
One of the best pieces of advice I ever received was to always buy my next car withcash. If you don’t have much money saved, have a smaller budget for your next car.
This way, you can make monthly payments to your savings account instead of a monthly car payment, and you can increase your budget for your next car over time.
– Ryne Higgins, senior manager, ecommerce