Top 5 Most Basic Tips To Improve Your Personal Finances:

Many people greatly struggle with their personal finances as they are establishing themselves as adults. What is important to remember is that one can absolutely come back from financial errors that they made in their youth. The key is to be diligent and dedicated in the process. Here are my five most basic tips to improve your personal finances:

1. Improve Your Credit: Your credit score is something that is essential to improve your finances. If you have bad credit, the key is to not apply for many credit cards because the inquiries are lowering your credit. Additionally, it is imperative to not use more than 20% of your credit limit. This will also increase your score as will timely payments.
2. Consider Debt Resolution: If you have many credit cards and are considering bankruptcy, rest assured that there is another option. What is important to remember is that if you are first time offender, debt resolution could save you from having a bankruptcy on your record. Be sure to research the companies until you find the right one. Some of these companies are fraudulent, but others are established and have helped thousands of people get out of debt. Thus, be diligent with your search and these companies will negotiate with your creditors, settle your accounts, and assign you a monthly payment per month to achieve your end goal of getting out of debt.
3. Create a Comprehensive Savings Plan: Even if you are in debt, start saving. This is a common error that people make. You allot a percentage of your salary to your debts, your cash liquidity, and to your savings. This will allow you to live while getting out of debt and to also save in the process. If you do this, you will get out of debt because you will have money to live on everyday and will also have savings when you do end up paying off your debt.
4. Buy Rather Than Rent: If you are able to buy, you should because it will serve you well as an investment later on. Renting is not ideal because it is empty money spent that is not resulting in ownership. Thus, if you can avoid renting you should because the ownership will lead to other financial opportunities later on because you can use the property to be considered for purchasing a second home one day.
5. Change Your Debt to Asset Ratio: If you are at 100% credit utilization, for example, change it! This is how you are going to improve your personal finances. Consider the mantra, “If you do not have it, do not spend it.” This principle, while unpopular, is ancient and effective. If you think this way, you can and will get ahead.

Improving your personal finances is not impossible. The key is to sit down with a professional and take a brutal look at your situation. If you do this, you will see realistically what you need to do to get better and will be able to get ahead in future years.