Personal Finance Tips for Beginners

Money-Saving Tips from the Experts

Not sure where to start? Here are some personal finance tips for beginners:

• Pay Attention to Interest Rates — Pay off high-interest loans first, so that you’re not paying more than necessary in the long run. Also, open a savings account with the best interest rate, and make your money work for you.

• Create a Budget — Look at all your monthly expenses and divide them into needs vs. wants. Determine what you can do without, but don’t cut out all of the fun things you enjoy. It’s important to leave yourself some room for a concert or dinner out every now and then. However, you can probably cut out recurring things that aren’t essential and can be quite expensive, such as cable or a gym membership.

• Set Aside a Reasonable Percentage for Savings — Financial experts recommend allocating 20% of your income towards savings. You can do this by following the famous 50/20/30 rule of budgeting. If you can follow this rule, you’ll be able to build an emergency fund, pay off your consumer debts, and kickstart a retirement savings.

• Create Financial Goals — When do you want to have your credit card debt paid off? How much will you need to pay per month to reach that goal? Having clear financial goals will keep you motivated and hold you accountable to proactively paying off your debts. This also applies to saving a certain amount each month towards your retirement goal.

• Always Match Your Company’s Contribution to Your 401k/IRA — If your company is willing to match your contribution, take full advantage of it. You’ll thank yourself when you’re able to retire later in life.

Need Help Managing Your Personal Finances?

For more information and tips on managing your personal finances, contact an advisor at your local First Bank* branch. Together, we’ll help you reach your financial goals.