A lot of times, the world of personal finance many seem complicated and confusing but below are 10 simple things that you can put into effect for your personal finances in 2016 to make things less complicated and make planning your finances so much easier. Also be sure to check out more advice and personal finance tips at Clever Girl Finance!

#1 PAY YOURSELF FIRST

Contribute to your retirement accounts (401k, 403b, IRA, ROTH etc.) first by automating this process as soon as you get paid.

#2 UNDERSTAND YOUR CREDIT SCORE

Know what your credit score is and keep track of it. Don’t open unnecessary lines of credit or rack up debt you don’t need.

#3 BUILD CREDIT RESPONSIBLY

To build your credit, opt for a cell phone bill you pay monthly instead of a credit card you will be tempted to max out. If you do use credit cards, ensure you pay them off in full every month.

#4 REMEMBER YOUR CREDIT CARD IS NOT A DEBIT CARD

Money from a credit card is not free money. You will have to pay it back and with interest if you carry a balance for more than a month.

#5 SAVE AT LEAST 10% PERCENT OF EVERYTHING YOU EARN OUTSIDE OF YOUR RETIREMENT ACCOUNT

Open up a savings account that you don’t touch and is not easily accessible and save, save, save. This way if any unplanned financial obligations come up you don’t have to rely on credit. You can also split yours savings into categories like emergency fund, travel, shopping, new house etc.

#6 UNDERSTAND COST PER WEAR

This is the cost of an item divided by the number of times you’ve worn the item. For example, something you wear everyday has a low cost per wear while something you wear once a month has a high cost per wear. Factor this process into your shopping and you’ll get more bang for your buck.

#7 TRACK YOUR SPENDING, MANAGE YOUR EXPENSES

Having a budget is really important for your financial success. It will help you understand where your money goes each month.

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