9 Personal Finance Tips That Transformed My Life! #Finance

here are my nine personal Finance tipss that absolutely transformed my life in the last 5 years have allowed me to 6X my Income quit my job and grow

a six-figure Investment Portfolio so be sure to follow along because I’m confident that all of these tips if you follow them will transform your life two tip number one at a minimum get rich slow have you ever heard anybody say that life goes slowly I don’t know about

you but I certainly haven’t ask your parents or your grandparents and they’ll tell you exactly that they feel like life has just passed them by and they don’t know where the years have gone man I’m only 29 and I don’t know where the last 10 years went so at a minimum

get rich slow because life goes fast and here’s how you do it as early as possible open a stocks and sharees is for account with somebody you like trading 2 on2 I’ll leave a link down in the description below where you can get one free share valued up to 00 and then invest into that

account every single month consistently without fail you can invest in something like an S&P 500 ETF which is what I personally invest in which essentially captures the top 500 company in the United States of America it’s historically performed extremely well and has gone up in value

roughly about 10% per year but essentially as long as a stock chart is going up and to the right you know it’s historically performed pretty well but do remember past performance isn’t necessarily indicative of future results now if you were to do this and invest just £200 a month from

age 18 right the way up to age 60 adding a 2% Inflationary adjustment to your contributions every single year then using this compound calculator you’d have an investment portfol earlier value at age 60 of £ 1.9 million so you don’t need loads of money to make money

you just need time and hopefully all of you guys watching this CashNews.co have got plenty of that left ahead of you tip number two optimize your disposable time you’ve all probably heard of the term disposable Income before essentially it’s the money that’s left

over after all of your immediate expenses are met and of course what you do with that disposable Income is extremely important for your financial future and disposable time follows the exact same concept we will have 24 hours in a day we sleep for 8 hours work for another 8 hours

commute for 2 hours and then we have another 6 hours left over to shower each walk the dog watch Netflix and whatever else you get up to but what you do with those disposable hours is absolutely critical to your future financial success for the past 10 years I’ve always made it a thing to

make sure I’m optimizing the Disposable time that I have whether that’s first thing in the morning or even late into the evenings ensuring that I’m working on something that’s going to benefit fit me at some point in the future in my life those things have ranged from

e-commerce to Instagram theme pages and more recently YouTube and for apply myself during that period of time it allowed me to make multiple six figures a year quit my job and more importantly do something I’m actually passionate about day in day out so be sure to optimize the Disposable

hours that you have then you may very well find yourself in a similar position tip number three avoid low Profit activities how much do you value your time at5 an hour £25 an hour £50 an hour perhaps even £250 an hour whatever it is be sure to park that number to one side for

one second and now I want you to think about all of the nonwork rated tasks that you get up to that end up filling up your disposable time things like doing the food shop cleaning the cars mowing the lawn perhaps even cleaning the house and then I want you to apply a pound value on all of those

activities based on how long they take to complete let’s say you’re doing really well for yourself and your ally rate is 50 Quid an hour so for example doing the food shop takes an hour so that’s 50 Quid washing the car is 1 and 1/2 hours so £75 mowing the lawn 45 minutes so £

3750 and cleaning the house for 2 hours is 100 quid that’s how much it indirectly cost you to dedicate your time to those tasks that you have to do but if you truly value your time whenever there is a task that can be done from somebody else at a lower cost than you currently value your time

at then you should Outsource that task all day long time of course is fin night we all struggle to find more time in the day so be sure to steer away from those low Profit activities so you can spend more of your time doing high-Profit activities that are only ever

going to increase your personal value it’s certainly something that I need to get a little bit better at myself and certainly something I need to do a little bit more of to ensure that I stop saving money to spend time and start spending money to save time instead which leads me on to talk

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the first three tips were all about your time because time is a most scarce resource so make sure you use it wisely but the next three are perhaps even more important than the last let’s now dive into tip number four which is treat saving like an expense follow this payday routine which

allowed me to easily build up a 12-month emergency fund it’s a simple process of just paying yourself first you do this by categorizing your saving as an expense and that money must leave your account the second that your wage or salary goes into it ideally you’ll end up taking 10% of

your Income but of course the more the better and put that into some kind of high Yield Savings account for me personally I currently use trading 22’s cash Isa paying 5.2% but I also use Chase Bank 2 which are also paying 5.1% for my kind of

Savings needs now there’s a concept here that I wanted to introduce to you guys it’s very much a concept used in banking called a net interest margin it’s how Banks essentially measure their individual Profitability based on how much they’re

paying out in interest to people who deposit funds versus how much they’re getting back in interest from money that they’ve borrowed out to customers and I think it’s a concept that people should apply to their own lives too right now there’s over 400 billion pounds in the

UK set in low interest rate bank accounts so it’s clear that not many people are really actively looking after their own personal net interest margin because the reality is there’s a huge chunk of cash not in high Yield Savings accounts yet no doubt

those same individuals still have some kind of financial obligations in the form of mortgage and the Interest Rates applied to those car Loans and the rates appli to those student Loans and the Interest Rates applied to those and

the list goes on so start trying to think about how you can offset some of those Interest Rates that you pay in Liabilities on interest that you can obtain from Savings in a bank account but remember this money is not for spending so move it into a

separate bank account where regular outgoings don’t go out of tip number five take advantage of an employee pension two in five Brits or about 40% are not on track for basic retirement this is the equivalent to 1.2 million people who are likely not to be able to afford what’s considered

to be the minimum lifestyle requirements which is considered here in the UK to be the equivalent Income of £4,400 per year this minimum requirement assumes that people can afford one UK holiday for a year for one week and it also assumes that you can spend £50 a week on groceries

if you’re single or £95 a week if you’re in a couple and it assumes that you also don’t have a car so it’s pretty bad bones in terms of those minimum requirements but the number of people falling short of those requirements is growing at an alarming rate based on recent

reports from Scottish widows so it probably comes as no surprise that I’m saying make sure that you firstly have an employee pension of some sort and if you already do and if you’re already paying into one then make sure that you’re trying to maximize the contributions that

you’re making to it after all any contributions made are taken pre-tax so it’s certainly tax efficient to do so I have a mate of mine who was telling me that he’s just kind of crept into that 40% Income tax threshold which is above 50 270 as a recording and

instead of paying 40 on every pound in earnings that he generated over that 50,2 70 instead he just decided to Chuck all of that extra Surplus money if you like into his pension instead so instead of paying Taxes actually contributing to his pension instead which is probably a far

wiser choice to make and the reason why it’s super super super important to do this is because from reports from the think tank and I’m pretty sure I’ve also seen this from the IMF who have come out and recently said that state pension here in in the UK is becoming fiscally

unsustainable by as soon as 2040 so we certainly shouldn’t be relying on the government to pay us into retirement during our golden years so we must take control of it ourselves tip number six is to increase your Investments proportionately when I was in my corporate job and

I’m sure the same is for you guys you get a pay rise every year usually it’s at least an Inflationary one of something like 3% but I also got promoted a couple of times too which kind of give me a little bit more of a jump in my salary there’s two ways that the

extra money can be treated either one you’ve got a little bit extra money to spend or two you’ve got a little bit extra money to invest and in my opinion you should always be choosing the latter if you get 3% pay rise then proportionately increase your contributions to your stocks and

Shares ice that year by 3% too if you get a promotion and say get a 20% pay rise then again take that same approach and increase your contributions to a stocks and Shares Isa by 20% that year as well forget about lifestyle Inflation and apply

something called investment Inflation where every time you make more money you proportionately increase the amount that goes into your Investment Portfolio to put this into numbers if you did this at say just 3% per year the difference in value in your Investment

Portfolio investing £250 a month at a 7% rate of return over 30 years would be an additional $1,884 all that for simply just increasing your investment contributions in line with your increased salary you’ll be no worse off in your bank account from a percentage basis but

you’ll be a hell of a lot better off when it comes to a Net Worth BAS basis that was future planning and Financial Security so now let’s dive into the final theme tip number seven is the law of exchange this is a little bit more of an esoteric principle about money but

stick with me because it’s one that I certainly feel plays a role if you’re thinking about it in the right way the law of exchange suggests that giving and receiving are two sides of the same coin the more money that you give the more money that you get back and here’s why

there’s something called the velocity of money essentially it’s how quickly Money Changes hands in an economy now if you’re spending that money in the right places I investing in yourself reinvesting back into your business and paying people in Fair exchange then the higher the

chances are that that money will come back to you in some way I’d love to be able to figure out what the return on investment are as some of these books that I read up on my shelf but without doubt it’s the single greatest return on investment that I’ve ever had that’s

absolutely transformed my life so don’t be worried about spending money in order to be able to receive money just make sure that you’re spending that money in the right places tip number eight is the $50,000 pound millionaire we all know somebody like it but don’t be that person

the 50k millionaire is somebody who earns £50,000 a year but spends it like they’re a multi-millionaire fancy new cars bottles in clubs designer clothes all just to put it out on Instagram Dave Ramsey likes to say stop buying stuff that you can’t afford with money you don’t have

to impress people that you don’t even like it’s a concept called acting your wage because after all the fundamental principles of personal Finances that

it’s not about how much money you make it’s about how much money you keep you can certainly build self-confidence without having to buy the latest BMW you can certainly buy expensive stuff but just once you’ve generated the Income from your

Investments to justify it you can also massively reduce your stress just by making sure that you’ve got an emergency fund in place so stop living so much for today and avoid the 50,000 millionaire lifestyle because your future self will certainly thank you for it tip number

nine is to enjoy life when it’s all said and done make sure that you enjoy your life too we only get one go around in this live so don’t be too fre Google that all of the fun gets stripped out of it I’m certainly not saying that you can’t enjoy your money until you’ve

got millions of pounds stashed away in Savings and Investments because the reality is if you ground yourself in good sound solid personal none;">Finance principles you’ll be able to enjoy the nicer things in life without having to stressing too much about how much it costs and whether you can actually afford it but you have to follow these kinds of personal

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance principles first in order to be able to put yourself in that position it’s the case of being able to spend but just not overspend it’s the mindset that I have and it’s the thing that’s

allowed me to become massively financially secure but also enjoy life along the way as well but I am intrigued I want to know what your best personal Finance tips are down in

the comment section below and if you do want a little bit more insight into my own personal Finances well I recently made an investment Portfolio update

which you can check out in this CashNews.co next and with that being said see you over in the next one