Top 3 Ideas to Consider to Improve Your Personal Finances

June 8th, 2017 | by admin
Top 3 Ideas to Consider to Improve Your Personal Finances

Money is a big thing that’s always on everyone’s minds. You need it for bills, daily expenses, food, the list never ends. Even after working a full-time job, it can seem like you never have enough money. While getting a new job or cutting expenses are common solutions, they don’t always work as easily as everyone may expect. Here are 3 ideas you should consider that could improve your personal finances.

#1 Pay Yourself First

While the majority of Americans find it hard to save, even those who do may not be saving enough or spending their savings too easily. As opposed to “saving” money, a good idea is to try to pay yourself first. This means that you do not save leftover money, instead, you pay yourself a portion of each paycheck and never touch it. Even as little as $100 a month can add up to a significant sum if left untouched. Those with a better understanding of their expenses and income can build up a sizeable nest egg without affecting their lifestyles.

#2 Invest in an IRA

An IRA, otherwise known as an Individual Retirement Account, can be created through a variety of methods and many are supported by your companies or place of employment. These investments are pretty good, but cannot be touched until you retire.

One consideration when investing in an IRA is that you do not decide which funds your money goes to. If the funds do well, you make money, but you’re reliant on the account managers to make the best decisions. If you want more control over your IRA, consider a self-directed IRA such as QuestIRA. These accounts allow owners to invest money wherever they want and have much fewer restrictions compared to traditional IRAs.

#3 Monetize Your Hobbies

What could be better than doing what you love? How about doing what you love and being paid for it? Monetizing a hobby is a great way to create a side income and could even lead to a profitable career change. Pretty much any hobby can be turned into a source of income. Those interested in sports or other activities can consider teaching. Even something as simple as a passion for movies or books can become an interesting blog or social media attraction.

The best part about monetizing a hobby is that it’s already something you’re doing and enjoy. This means the time you spend relaxing now can double as time spent making money. Officially forming a business has other perks such as tax write offs and incentives which can actually cover the expenses of your hobbies.

Whether you’re just out of school and joining the workforce or you’ve been working for years and are looking to save more money, these tips could help. Paying yourself first, investing in an IRA, and turning a hobby into a side income can all help boost your personal finances without really changing your lifestyle.

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