23 Best Personal Finance Tips (2023 Ultimate Guide)

Are you looking to improve your personal financial situation in 2023?

It’s always possible to start saving, build your wealth, or take control of your finances.
Keep reading below for the best financial advice ever and our take on the 23 best personal finance tips for 2023!

What are the Best Personal Finance Tips?

1. Start a Side Hustle

We are currently in the era of side hustles. Long gone are the days of staying in one job for 30+ years, grinding your way up to the top of the company for a 2% raise a year.

Side hustles are a smart way to earn extra income while working a full-time job. Use social media, networking, and other marketing strategies to promote your side hustle and attract customers.

Consider building a website or online presence to showcase your products or services and reach a wider audience.

If you work hard enough, you may be able to make that side hustle your full-time gig!

2. Invest in Real Estate

While a significant investment, real estate has traditionally been less volatile than the stock market.

If you have some extra money, investing in real estate is a unique way to build wealth over a more extended period.

With current rents at sky-high levels, your tenant could be paying your mortgage off for you.

Thanks to Airbnb, VRBO and other short-term rental sites, you could turn your real estate investment into a full-fledged, income-generating business.

3. Pay off Debt

Paying off debt has always been a smart financial move, but it’s more important now than ever to start hammering away at that pesky credit card or student loan debt in the current economic state of high-interest rates.

Try making a list of all your debts and prioritizing them, paying off the debts with the highest interest rates first.

4. Create a Budget

Keep track of your expenses for a month or two to better understand where you are spending most of your money.

Try using a budgeting app or spreadsheet to track your expenses.

By focusing on budgeting, you can progress toward your financial goals and build a strong foundation for your future.

These apps allow you to track spending, set budget goals, and create a plan to pay off debt.

5. Start an Emergency Fund

An emergency fund is a savings account for unexpected expenses or emergencies. An emergency fund can provide financial stability and help you avoid debt when unforeseen expenses arise.

Prioritize saving for your emergency fund and make it a regular part of your budgeting process. Try saving much as you can each month.

Avoid dipping into your emergency fund for non-emergency expenses. This fund is for unexpected costs, not vacations or new clothes!

6. Eliminate Unnecessary Costs

Review your budget and identify any optional expenses, such as subscription services that you no longer use or unnecessary luxury items.

You can even negotiate better rates with your service providers, such as your cell phone or internet provider. Try to shop around and compare prices before making a purchase.

Look for sales and discounts, consider buying in bulk to save money, or find cheaper alternatives to current subscriptions and repeat purchases you make monthly.

7. Plan for Taxes

Remember to make your estimated tax payments. If you are self-employed or have other sources of income that are not subject to withholding tax, you may need to make tax payments or instalments throughout the year to avoid underpayment penalties.

Planning for this in your budget is also a great idea. TurboTax is an easy-to-use software that can help you prepare for taxes you may owe as well as estimate your tax refund. 

8. Focus on Saving

Saving money is essential to managing your finances and achieving financial stability. It can help you prepare for unexpected expenses, reach your financial goals, and have a safety net for the future.

Try setting up automatic transfers from your checking account to your savings account to make saving a habit.

Consider investing your savings in long-term vehicles, such as retirement or a high-yield savings account, to help your money grow over time.

9. Plan for Retirement

Don’t forget about Social Security, pensions, 401(k)s, IRAs, and other savings or investments when determining retirement income sources.

How much money you’ll need each month to support your desired retirement lifestyle will depend on your current savings and any other retirement income sources.

Consider contributing more to your pension plan if you still need to maximize your contributions or invest in other assets such as stocks, bonds, or real estate.

10. Pay off your Mortgage Faster

Make extra principal payments whenever possible. Any time you have extra money available, consider making additional principal payments on your mortgage to reduce the overall balance of your mortgage and help you pay it off faster.

If you have a long-term mortgage, consider refinancing to a shorter-term mortgage. While your monthly payments will increase, you will pay off your mortgage quicker and save money on interest in the long run. 

11. Negotiate your Salary

With the demand for skilled labour at an all-time high, now is the perfect time to re-negotiate your salary with your current employer.

Look at salary data for your industry and location to get an idea of what you should be earning. The salary analysis will help you have a realistic expectation of what pay level you can achieve.

Know your worth and consider your education, experience, skills, and other factors contributing to your employee value.

12. Review your Credit Score

Credit scores are three-digit numbers ranging from 300 to 850. A higher score indicates a better credit history. 

You can check your credit score for free on websites like Credit Karma or Credit Sesame. Alternatively, you can pay a small fee to obtain your credit score from the credit bureaus directly.

Your credit score is determined based on several factors, including your payment history, credit utilization, credit history, types of credit used, and the number of inquiries. 

Understanding these factors can help you identify areas where you may need to improve your credit.

13. Invest in the Stock Market

Investing in the stock market is a smart way to grow your wealth over time.

Don’t try to time the market. It’s impossible to predict when the stock market will go up or down. Instead, focus on long-term investing and let your investments grow over time.

Don’t put all your eggs in one basket and invest in various stocks, bonds, and other assets to reduce the risk of losing money.

14. Invest in Cryptocurrency

Investing in cryptocurrency can be risky, though lucrative. Try to choose a reputable cryptocurrency exchange to buy and sell your cryptocurrencies.

Look for an exchange with a good reputation, strong security measures, and low fees.

Cryptocurrency prices can be volatile, so managing your risk by only investing what you can afford to lose is essential.

Consider setting stop-loss orders to protect yourself from significant losses.

15. Automate your Finances

Automating your finances can help with money management and ensure efficiency and time savings. Try setting up automatic bill payments for your regular bills, such as your mortgage, car, and utilities. Automation will ensure that you never miss a payment and avoid late fees. 

Many investing platforms such as Mint offer auto-investing tools that allow you to automatically invest a certain amount of money each month.

You’ll save time and make sure you are consistently contributing to your investment portfolio.

16. Learn Bookkeeping

Learning bookkeeping can help you manage your finances more effectively and make informed business decisions.

There are many bookkeeping courses available online or at local colleges and universities. These courses will teach bookkeeping basics and provide you with the skills and knowledge you need to succeed in this field.

Familiarize yourself with standard bookkeeping terms and principles, such as debits and credits, double-entry accounting, and the accounting equation.

You can also learn how to use popular software programs like QuickBooks, Xero, or FreshBooks to automate your bookkeeping tasks and streamline your financial management.

17. Prepare for the Future

Preparing for the future can help you achieve your financial goals and ensure a secure financial future.

Determine what you want to achieve financially in the short and long term. Goals include paying off debt, building an emergency fund, saving for retirement, or buying a home.

Consider taking steps to protect your assets, such as purchasing insurance or creating a will or trust. Your future self will thank you for thinking ahead, taking personal financial planning seriously, and making smart financial moves at an earlier age.

18. Focus on Financial Education

Focusing on financial education can help you improve your financial literacy and make informed financial decisions

Many books, articles, and websites are available on financial topics, such as budgeting, investing, and saving for retirement.

Try searching personal finance advice websites for inspiration to help you learn more about financial concepts and strategies.

Many organizations and schools offer financial workshops and seminars on personal finance, investing, and retirement planning. Attending these can help you learn from experts and improve your financial knowledge.

19. Consider Insurance

Both life and disability insurance can provide financial protection for you and your loved ones in unexpected events, such as death or disability.

Shop around and compare different life and disability insurance policies to find the best coverage. Consider factors such as premiums, benefits, and exclusions.

Life and disability insurance premiums vary widely, so choosing a policy that fits your budget is essential.

You should also carefully review the terms and conditions of any life and disability insurance policy before purchasing it.

Make sure you understand what is covered and any exclusions or limitations. Lastly, regularly reviewing your policy is essential as your financial situation and needs change.

20. Try Working with a Financial Advisor

If you need more time or expertise to manage your finances, consider hiring a financial advisor who can help you create a financial plan, invest your money, and automate your finances to meet your goals.

They can offer personal finance tips for young adults and help them choose investments that align with their financial goals and risk tolerance.

Financial advisors can help you minimize your tax burden by providing advice on tax-saving strategies and can also help you develop a plan to pay off debt and improve your financial situation.

Financial advisors can also answer frequently asked questions and help you improve your financial knowledge quickly.

21. Learn from your Mistakes

If you make a financial mistake, use it as an opportunity to learn and improve your financial knowledge and skills.

Financial education is a continuous process – keep learning and staying up-to-date on financial news and trends to improve your financial literacy and make informed financial decisions.

Try learning 100 financial tips – one a day for 100 days and re-evaluate your progress at the end of the year. You’ll be surprised at how much knowledge you can gain in a short time!

22. Listen to Personal Finance Podcasts

Financial podcasts are audio or video programs that cover various financial topics and offer advice and insights on managing money and making informed financial decisions.

Financial podcasts can be accessed anywhere and are often free to download or stream. Financial podcasts often feature financial experts and professionals who provide valuable insights and advice.

To find financial podcasts, search online or use a podcast directory or app, such as Apple Podcasts or Spotify. You can also ask for recommendations from friends or financial advisors.

23. Visualize your Financial Goals

Visualizing your financial goals can help you stay motivated and on track to achieving them.

Clearly define your financial goals, including the money you want to save or earn, the assets you want to acquire, and the debts you wish to pay off.

Use visualization techniques, such as creating a vision board or writing affirmations, to help visualize your financial goals.

Track your progress towards your financial goals by reviewing your financial plan and measuring your progress regularly.

Remember to stay motivated by reminding yourself of the benefits of achieving your financial goals and their impact on your life!

Best Personal Finance Tips Summary

In summary, there are several financial tips that you can implement and learn from in 2023 that will help you improve your financial situation and achieve financial stability and security.

Try focusing on the tips that resonate the most with you first and slowly adjust and make improvements until you are satisfied with your progress.

Good luck, and cheers to your financial success and freedom!