Don’t spend more than you earn.  To paraphrase a famous quote, the definition of happiness is to earn a dollar and spend 99 cents. The definition of catastrophe is to earn a dollar and spend 1.10 dollars.

Don’t buy things you don’t need. Its Ok to buy things you like or want if you can afford them and we all need an interest or hobby, but don’t fall into the trap of buying things to impress others.

Have a budget. Don’t ignore the problem or pretend it doesn’t exist. Know your income and expenditure, and keep to it as best you can, The route to disaster is not even to be aware that there is a problem, and not realise you will never be able to make ends meet, because your outgoings are more than your income.

Have a financial plan. Plan to pay off your debts, make investments, and invest in your retirement.

Try to have several income streams. Then if something goes wrong you will have a contingency. You may be able to make money from hobbies, freelance opportunities, and part time work. And the income will help you realise your financial plan.

Have some savings. There is nothing worse than living hand to mouth and then something goes wrong, and you can’t make the rent or eat, The amount you can save will vary according to your situation, but even a small contingency makes life less stressful.

Examine your expenditure and cut out unnecessary items. Most people have some recurring payments going out of their account for things they have forgotten they set up, don’t need any more, and have lost interest in.” Housekeep” your bank account, check you know what every item is for and that you still need it.

Try to increase your income rather than cut down on your expenditure, to allow you to have better enjoyment of your life. Life’s little luxuries are great, if you can afford them!

Don’t put off saving until you can afford it-that day will never come. Make a start and watch your savings grow.  The rich are not rich because they earn a lot of money, but because they save a lot of money.

Learn about compound interest. This is interest added to your savings, and then the added interest also earns interest. So if you save a small amount and can leave it for a long period the interest compounds and your savings will grow.

For example, if a 20-year-old saves $5,000 in an account earning an average 8% annual return, and never touches the money, that $5,000 will grow to $160,000 by the time they are 65 years old. But if that person waited until they were aged 39 to make the same investment, the $5,000 would only grow to $40,000.

Remember that compounding interest only works if you leave your investment untouched and allow your investment to grow. The results will seem slow at first, but if you persevere you will see results. Time is the primary ingredient, so try to start saving early, even if it is only a small amount, And learn about compound interest!!

Personal Finance Tips, Key Skills

• Don’t spend more than you earn.
• Don’t buy things you don’t need.
• Have a budget.
• Have a financial plan.
• Try to have several income streams.
• Have some savings.
• Examine your expenditure and cut out unnecessary items
• Try to increase your income
• Don’t put off saving until you can afford it
• Learn about compound interest