Simple personal finance tips from all around the world that can make a big difference in your finances.
Money is something else…
Let’s be honest—money management can be tough. We’ve all had that moment when an unexpected bill pops up, and suddenly, you’re scrambling to make ends meet. Maybe it’s the car needing repairs, a medical expense, or just a bunch of small purchases that added up quicker than you expected. Whatever it is, it can feel like your wallet/ purse is always one step behind.
Sound familiar? If so, you’re not alone. Personal finance can be tricky, but it doesn’t have to be.
Recently, a viral tweet asked the question: “What’s a personal finance hack you believe everyone should know, but few actually do?” The responses were packed with practical tips that can help you avoid financial stress and take control of your money.
We’ve pulled together some of the best advice from that thread and broken it down into simple, actionable steps. These are the kind of tips that can make a real difference in your financial life—helping you stay ahead rather than playing catch-up.
1. Set Up a Dedicated Savings Account for Predictable, Infrequent Expenses
“Set up and contribute regularly to a dedicated cash savings account for infrequent but predictable expenses (Christmas gifts, anniversary dinner, etc.). This way, they won’t ‘catch you off guard’ and derail your budget.” — @trynotsuck
The holiday season or those once-a-year celebrations can sneak up on you and throw off your budget if you’re not prepared. Consider setting aside a small amount each month in a separate account. By the time those expenses roll around, you’ll have a nice cushion ready, and your budget will remain intact.
Example: If you know you’ll spend big on holiday gifts each year, save a portion a month in a dedicated account. When December comes, you’re covered without touching your main savings.
2. Be as Fit and Healthy as Possible
“By the time you get to 60, your retirement savings don’t mean much if you’re of a higher-weight, arthritic, diabetic, and otherwise in poor health. You’ll blow tons of money on prescription meds for conditions that can be fixed by weight loss.” — @texasrunnerDFW
Investing in your health is a financial decision. Preventative care—like maintaining a healthy weight, eating right, and exercising—can save you from costly medical bills later in life. It’s a long-term investment in both your well-being and your wallet.
Example: Regular exercise and a balanced diet could save you thousands in medical costs by reducing the risk of chronic conditions like diabetes and heart disease.
3. Keep Track of All Spending
“Keep track of all spending. It’s one of the biggest. Doing it for more than 3 years and it’s very revealing. Remember this: ‘What gets measured gets managed.’” — @MirelAioanei
Knowing where your money goes is half the battle in managing it effectively. Tracking your spending helps you identify wasteful habits and areas where you can cut back. It might be tedious at first, but it’s worth it.
Example: Use a simple app or even a notebook to jot down every purchase. After a few months, patterns will emerge, showing where you can save.
4. Spend Less Money Than You Make
“Biggest hack that most don’t do.” — @adr1anl0pez
It sounds simple, but it’s the foundation of all personal finance. Living within your means ensures you’re not racking up debt and allows you to save and invest for the future.
Example: If your monthly income is $3,000, aim to spend only $2,500. Save or invest the remaining $500. Over time, this small discipline can lead to significant financial growth.
5. Focus on Building Cashflow, Not Just Accumulating Wealth
“Cashflow can make you financially free faster than accumulating to a magical number that you may never reach.” — @ChroniclesNate
Having a steady cash flow—income from investments, side hustles, or rental properties—gives you financial freedom. It’s not just about saving a lump sum; it’s about creating streams of income that cover your living expenses.
Example: Investing in dividend-paying stocks or rental properties can provide a steady income stream that supports your lifestyle without depleting your savings.
6. Understand the Power of Compounding Interest
“Start investing sooner in life, or plan to live a lot longer!” — @NathanQuinlanGC
Compounding interest is your best friend when it comes to growing wealth. The earlier you start investing, the more time your money has to grow exponentially.
Example: Investing $1,000 at an 8% annual return at age 25 could grow to over $21,000 by age 65. Wait until you’re 35 to start, and that same $1,000 only grows to about $10,000.
7. Fulfill Your Needs, Not Your Greed
“Buy things that make you happy, not to show off.” — @Tahacopy
It’s easy to get caught up in the cycle of buying things to impress others, but true financial happiness comes from fulfilling your needs and wants—not someone else’s expectations.
Example: Instead of upgrading to the latest phone every year, consider if your current one still meets your needs. The money saved can go towards something more meaningful, like a vacation or investment.
8. Track Your Net Worth
“Tracking your net worth actually helps increase your net worth.” — @Jack_Allweil
Knowing your net worth gives you a clear picture of your financial health and can motivate you to make smarter financial decisions. It’s not just about how much you earn but how much you keep and grow.
Example: Calculate your net worth by subtracting your liabilities (debts) from your assets (savings, investments, property). Track it monthly or quarterly to see your progress.
9. Treat Investments Like a Monthly Bill
“Set up your monthly investment as if it was a required bill, just like your electricity/phone, etc., so you don’t neglect contributing each month.” — @DivStockpile
Automatic investments make saving effortless. By treating your investment contributions like any other bill, you ensure you’re consistently building wealth without thinking about it.
Example: Set up an automatic transfer to your investment account each month, just like you do for your rent or utilities. Even a small amount adds up over time.
10. Diversify Your Emergency Savings
“Put your emergency savings in an account at a place you don’t normally bank. Make it difficult to transfer out, and forget about it!” — @makers_midwest
By separating your emergency savings from your regular bank, you reduce the temptation to dip into it for non-emergencies. This money should be hard to access so it’s there when you truly need it.
Example: Open a high-yield savings account at a different bank and set up automatic transfers from your main account. And remember, out of sight, out of mind.
Final Thoughts
These tips may seem simple, but they can make a huge difference in your financial life. The key is consistency—small, smart decisions made regularly can lead to significant financial freedom over time.
Until next time,
The SimplVest Team
