Are you ready to take control of your finances? Here are 9 tips for personal finance success that you can start today!

It will come as no surprise that money and finances are among the top causes of stress for many people. Rising costs, inflation, the economy, and world events can make it feel like it is impossible to get ahead. But if you are tired of struggling with money and living paycheck to paycheck, there are many things you can do to improve your financial situation.

By taking even a few of the steps in this article, you'll gain the knowledge and confidence to take control of your money and achieve personal finance success. It's time to start mastering your money and creating the financial future you deserve.

9 Tips to Help You Achieve Personal Finance Success

1. Build your emergency fund

If there is one thing that will reduce stress and increase peace of mind when it comes to your finances, it’s having a fully funded emergency fund. Having money saved for when things go wrong helps you avoid debt and feel more prepared. Instead of constantly worrying about what you’ll do, you’ll have more confidence that things will be okay.

An emergency fund’s main purpose is to enable you to pay your bills in case you lose your income or ability to work. It can also be used to pay for major emergencies, such as medical bills, urgent home repairs, or any other situation where NOT paying right now would have a severe negative effect on your life.

How much you need in your emergency fund depends on your risk of losing your income or ability to work, the industry and job you work in, what other sources of income you have, how quickly you could replace income, and your level of comfort with uncertainty.

The general recommendation is to have 3-6 months worth of living expenses in an emergency fund. To calculate, add up how much you need in order to survive and pay the bills for one month. Multiply by the number of months (3-6) to get the target amount you need.

Also read:

• Why You Need an Emergency Fund

• Job Loss, Medical Costs, and Home Repairs: How to Be Prepared When Something Goes Wrong

• How to Build an Emergency Fund When You Don’t Have Any Money

2. Identify your money goals and values

Knowing what is important in your life is a critical first step because you need to know what you are saving for and which expenses are most important to you. If you lose your job, you’ll be able to more easily prioritize where your money goes. Creating a vision for your life helps you more rapidly make decisions on purchases and areas where you can cut expenses. 

Click here to get the free values exercise that I use with my clients to help them get clear on their values and goals.

3. Evaluate your spending

Evaluating how you spend your money helps improve your finances by building awareness. Simply being aware of where your money goes can help you be more intentional and help you decide what (if anything) you want to change.

It can also help you identify what is happening if you find yourself relying on debt, living paycheck to paycheck, or struggling to get by.

You’ll be able to assess how your spending fits into your values and life goals and ensure that your money is being used to support the life you want to live.

To get started, write down everything you buy for a few weeks or a month. (Get my free expense tracker worksheet here.)

4. Create a spending plan

A spending plan (or budget) is a detailed plan that outlines your income, expenses, and savings, and it serves as a roadmap for how you manage your money. By creating and adhering to a spending plan, you can gain control over your finances, identify areas for improvement, and ensure that your spending aligns with your financial goals.

There’s no one right way to create a budget or spending plan. The key is that you know how much money comes in and generally where it all goes. Some people thrive on a detailed budget with categories outline how much can be spent in various categories. Other people work best on a general system of making sure they have enough to save and pay the bills and then don’t worry about the rest.

Remember, a spending plan is not necessarily about restricting your spending. It’s simply a way to be more in control of where your money goes.

Check out these budgeting resources to help you get started.

5. Review your credit report

It’s a good idea to regularly review your credit report to make sure that all of the information is correct and that there is no unauthorized activity (identity theft). Your credit report shows you things like payment history and accounts that are open under your name. It is not the same thing as your credit score, although your credit score is calculated using the information from your credit report.

Managing your credit is also important because it can affect your ability to get loans, utilities, and rental leases. It also affects the interest rates you receive and how much it costs to borrow money.

One of the best (most secure) ways to access your credit report is to go to annualcreditreport.org. You’ll be able to request and view your reports from each of the three main credit reporting bureaus.

Learn more about smart credit management with my guide to credit scores.

6. Pay off debt

Being in debt is not only stressful—it makes it increasingly difficult to get ahead and create long-term financial security and wellbeing. While it may feel overwhelming and hopeless, paying off debt IS possible if you put your mind to it and use a solid strategy.

Get started with these paying off debt tips, and remember:

Your debt does not define you. It does not make you a bad person or mean that you’re bad with money. And you CAN get through it!

7. Start or continue saving for retirement

Most people know that they are supposed to save for retirement, but making it happen isn’t always so easy or straightforward. First, it’s easy to put off saving because it seems so far away and isn’t always a priority in the moment. Second, it can be a challenge to find the money to save. And even if you have the money and feel motivated to save, figuring out how to get started can be overwhelming.

Yet many people reach retirement wishing that they had started sooner and saved more. So do what you can to get started as soon as possible, even if it is a small amount. Building the habit and doing anything at all will create a solid foundation on which you can build.

Learn how to get started with this guide to saving for retirement for complete beginners.

8. Save for other goals

Once you’ve covered all the bases above, it is time to start saving for your financial goals, such as buying or remodeling a home, college education, travel, or a major lifestyle/job change. 

The easiest way to start saving is to set up automatic transfers to your sinking funds—special savings accounts for specific purposes.

9. Improve Your Financial Mindset

The biggest reason people struggle to improve their finances is that they feel like they have to deprive themselves of anything that is fun, enjoyable, or worthwhile. And while there are certainly reasons for cutting back on things, I’m not going to tell you to give up your lattes and avocado toast if that is something that makes your life just a little better.

Identifying your goals and values and tracking your expenses is important because you need to know what is important to you. Find the things that you don’t care about as much and cut those first. Focus on your long term goals and how you want your life to look in the future. If you can envision that, you can weigh current expenses against that goal and decide what is more important.

By focusing on the things that help you live your best life now and in the future, you will feel more fulfilled. That will make all this a lot easier and set you up for success. 

Want personalized, judgement free guidance to help you take control of your finances? Learn more about financial coaching!