The Most Important Financial Advice

This specifically applies to you…

Personal finance is just that…personal. While many financial advice articles highlight different investing strategies and ways to build up your income, we must always remember that our financial journeys are personal.

The most useful advice is often the boring, common sense advice. The stuff that everyone knows when they hear it but don’t actively think about each day.

The most important thing you can do for your personal finances is constantly track your income and expenses. Use a spreadsheet to track the recurring expenses and the one-off expenses.

Each dollar you spend is an opportunity cost. The dollar you spend can’t get invested into an asset. We have to spend money on our living expenses and other items, but tracking your expenses will make you more conscious. You’re less likely to waste your dollars on stuff and focus more on experiences and what makes you happy.

Saving $100/mo has the same effect as making an extra $100/mo. The more money you earn and save, the more you can contribute to your portfolio each month. Investing is the most common pathway people take to wealth. The money you invest now can compound over time.