Steve Rice shares with you advice on how to avoid running into money trouble when it comes to your personal finance.

1. 5 T I P S T O AV O I D P E R S O N A L
F I N A N C E P I T FA L L S
C R E A T E D B Y S T E V E R I C E

2. • Managing personal
finances is a skill that
not all possess.
• Such a simple
concept when
ignored can damage
more than your
weekly spending
allowance.

3. • Spending without
proper precaution will
affect your future,
preventing you from
achieving the goals
you’ve worked so hard
to earn.
• By following the
simplest of steps, you
can better protect
yourself and your
wallet from the allure
of overspending.

4. • When shopping, purchase
with your budget and not
your eyes.
• It’s easy to see that new
television or car as an
acceptable loss, but those
expenditures add up
quickly.

5. • Everyone likes
something new, but
it’s not always the
best choice when
living under a
budget.
• If you’re looking to
purchase something
in the near future,
saving is always the
best option.

6. • Set a goal and work toward it.
• With each milestone met, reaching your desired
outcome will only feel sweeter.

7. • Building and
maintaining an
emergency fund is
not only a good
idea, it’s a necessity.
• Beyond covering
yourself for the
unexpected, a
backup or
emergency fund is
“found money.”

8. • Car breaks down
while you’re working
toward putting a
down payment on a
house?
• Your well fed
emergency fund will
manage the hit while
your plans continue,
unhindered.

9. • However, your emergency fund is not for use on everyday
purchases.
• If you can’t afford it without dipping into your backup funds, then
reconsider purchasing the item at all.

10. • Learn all you can about
your taxes, and more
importantly your tax
exemptions and
refunds.
• Every dime you make
passes through a
minefield of percentiles
levied by your state
and federal
government.

11. • Understanding where
that money goes
come tax season
prevents you from
leaving money on the
table or losing more
than necessary.
• If research doesn’t
cut it, don’t be afraid
to consult a
professional.

12. • It’s their job to understand the tax world, and
they may be able to find you exemptions that
you’d have missed.

13. • Ultimately, creating this budget is to preserve your financial future.
• Part of ensuring your relative comfort is making sure you pay into your
retirement fund.

14. • Maintaining a 401k
is an absolute must.
• Over the years, it’s
tempting to dip into
the money you’ve
accumulated, but
think of it as a
pennies in an
unbreakable piggy
bank.

15. • This money is more important than your emergency fund, because it’s
meant to support you when you’ve retired.
• No one wants to work well into their 70’s, and maintaining a strong
401k will keep that from happening.

16. • Lastly, be sure to “pay
yourself.”
• Saving with no concept
of reward will eventually
lead you to resent your
efforts.

17. • Save money, spend responsibly but allow yourself
some freedom.
• There is no sense in strangling yourself with a self-
imposed budget.

18. • This is by no means
permission to avoid the
aforementioned financial
planning, but it affords you
some freedom without
sacrificing the simple joys
in life.