Personal Finance Tips That Have Stuck With Me

Throughout the years, I’ve gotten a lot of financial advice from different people. While much of it was helpful, here are a few tips that stayed with me.

Sleep on It

With small and large purchases alike, I typically don’t buy the product that I’m interested in that day. Instead, I’ll wait a day or two, and if I’m still thinking about that specific item, it means I truly want it. Most of the time, I forget about whatever I wanted to buy which shows me that I didn’t really want it in the first place. While I don’t have a specific number, I’m sure this has saved be hundreds of dollars over time.

Rent/Mortgage should be no higher than 1/3 of your take home pay

This was one of the best personal finance tips my mom taught me and helped me get on the path for financial stability. When I got my first “big-girl” job and found out my salary, I immediately went to a calculator to figure out how much my take home pay would be. After doing a little math, I found that I could afford to spend $1000 on housing each month, not including utilities. With this number in mind, I was actually able to find a great apartment well within my budget. The best part for me though was that I wasn’t “house poor.” Because I allocated less than 1/3 of my take home pay to housing, I had money to spend on other things (ie – those pesky student loans).

Even millionaires need a budget

This was something my dad told me before I studied abroad in Rome for a semester and it has stuck with me ever since. As a 19 year old going to Europe for the first time, I saw it as an opportunity to travel all over. To my dismay, traveling costs money and I had a limited amount to spend.
As crazy as it sounds, this little factoid makes me feel better. All of us, no matter our income level, need to live within our means in order to save and not go into debt. So whenever you feel limited by your budget, remember that you are not alone and even millionaires need one.

Save like no other, so you can give like no other

While Jake and I are huge fans of saving, we also recognize the importance of giving. We both tithe to our church and also give to various organizations on a monthly basis. One of the reasons we want to have financial success is so we can continue to give and be able to give more of our income. If we save like no other now, we can give like no other later.

What are some tips that have stuck with you?!

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