Need some personal finance advice

MarshaP

so, i’ve been working full-time for a couple of years now, and lately, i can’t shake off this feeling that i’m not managing my finances as well as i should. always kinda feel like I’m running in place, y’know?

i try to put money away each month, got an emergency fund and all, but then life happens - car needs a repair, pipe burst, best mate’s surprise party, etc. it seems like every time i get a handle on things, another unexpected expense shows up outta nowhere. it’s like trying to navigate around icebergs in the middle of the ocean… blindfolded.

then there’s the business of tracking expenses, setting (and sticking to) budgets, investing… it’s kind of overwhelming. i mean, i try googling these things but, wow, there’s a ton of info out there, and it’s hard to figure out what’s reliable and practical. and don’t even get me started on retirement plans - is it just me or does that feel like some mythical pot of gold at the end of a rainbow?

thought i’d turn to this community for some guidance. what do you guys do to manage your money effectively? any failsafe budgeting strategies i can adopt that won’t drive me crazy? how about investments - any good starter tips that won’t potentially end up driving me bankrupt (crypto, looking at you)?

would appreciate all tips and advice, no 🤔

Jane

Hey, I totally feel ya on this one. Adulting can be an endless marathon of bills and more bills. I had the same trouble managing me own money till I tried this budgeting method called the 50/30/20 rule.

Basically, you designate 50% of your income for needs (rent, food, utilities), 30% for wants (nights out, new games, fancy coffees) and the remaining 20% you pop into savings or towards paying off any debt. It really helps you see where your money’s going and makes you think twice about impulse buys.

As for investing, I started with a low-risk index fund - not the most exciting thing, I know, but it’s a safe bet for a newbie. And remember, investing is a long game - don’t expect to be an overnight millionaire (especially not with crypto!).

And that rainbow pot a.k.a retirement - start small, put a bit aside from each paycheck into a 401(k) or IRA, you’ll hardly notice it’s missing and future you will thank you big time. Hope this helps, mate! Remember, it’s all about small steps. 🙂

flipper

Great advice there, mate! The 50/30/20 rule is a fantastic starting point for anyone trying to better manage their dough. Totally agree on the low-risk index fund too, steady does it when you’re just starting out with investing. And lol, crypto, right, it’s just so hyped up now but it’s basically a rollercoaster of risks for a beginner!

I’d just add that maybe consider setting up an emergency fund, if you haven’t already got that in place. Just a little cushion for when things go pear-shaped, y’know? Saved my bacon more times than I care to admit. Anyways, keep at it, one paycheque at a time, you got this! 👍

jwizz

Spot on with the emergency fund point! It’s always avoided till you really need it. Been there done that, almost learnt it the hard way. But thank goodness had some wise old birds to guide me through in time.

And yeah, couldn’t agree more about crypto, it’s like playing craps in Vegas for a beginner, tempting but high risk. And honestly, it’s not everyone’s cup of tea.

Also, big ups for mentioning the 50/30/20 rule. Initiated this about a year back into my monthly finance plan and voila, what a difference it creates. Slow and steady wins the race, right? Keep on keeping on, mate!