A Short Guide to Get Started in Financial Basics

Most adults ignore how they should be using their money. Since there is no official education on this matter in the regular curriculum, it is rather a trial and error process. But, financial errors will cost you a lot of money and personal distress. Some tips will help you avoid the most hardship in the years to come. In this article, we share 10 powerful tips with you.

1. Financials 101: Spend Less than You Earn

Although this one may sound obvious, you’d be surprised about how many people do not follow the rule of thumb. Make a list of your income source(s) in contrast to your expenses. Do not leave anything behind in this list. How are you doing at this moment?

2. Define your Financial Goals

Goals may vary from one person to another. For instance, I may be interested in creating an online business while you think of mastering the guitar. That’s okay. Now, define these goals and estimate how much you need to make it happen. Next, start working on that.

3. The Art of Cutting Expenses

It is hard to reduce spending while keeping up with the current lifestyle. You need to arrive at a compromise between comfort and the cost of living. Be thorough and honest with the list of income and spendings.

4. Use Debt in a Smart Way

You can use payday loans to keep afloat when the moment to start a business arrives. At Expert Payday Loans, you will find a list of services that can come handy. But, think of how you will pay the installments on time before applying. Make a plan. And remember, there are some states that currently prohibit payday loans such as Arizona, Arkansas, Connecticut, Georgia, Maryland.

5. Create an Emergency Fund

Saving for times of financial struggle is a no brainer. Estimate how much you need to make do for 2-3 months (ideally 6). Then, start saving for this fund progressively.

6. Stick to a Monthly Budget

Make a thorough plan to spend money each month. Include fixed costs (electric bill, phone bill, etc.) and variable expenses (food, transport, etc.). Leave a margin for fluctuations; for instance, if I estimate $200 in transport, I’d add a 20% margin, that is, the estimation ranges from $160 to $240.

7. Hire Insures to Avoid Losses

There are some situations in life for which you may not save enough. The purpose of insurance is to be covered in those scenarios, for instance, house insurances, life insurances, car insurances (always include glasses and fire in these insurances!), and so on.

8. Save for Personal Goals

You may have some milestones that require money to be achieved. For instance, if you want to become a chef, you will need to pay for a course and buy kitchen utensils. Think of the long-term, start saving for it today.

9. Save for Retirement

Reaching a 30%-50% saving ratio with an average income is hard but not impossible. But, in most cases, you can make do with around 20%. For instance, if you make $1000, 20% is $200 per month. That is $2400 in a year, $24k in 10 years. It’s a good chunk for the piggy bank!

10. Keep the Consistency

Once you start with the financial savvy practice, keep it going. The more you stick to your plan, the close you will be to make it happen.


The 2020 financial crisis is the perfect scenario to start saving money for the future. Cut down spendings, make a plan, and stick to it. We do not know yet where this recession will take us, but one thing is sure: it will take time to recover. Get started today.