September 6, 2021

Top 5 Tips for Financial Success in 2022

Here are the best personal finance tips to take control of your finances and get you on track to financial freedom sooner than you think.

14 min read

Qoins Staff


When it comes to personal finance, there are tips and tricks for everything. There are 5 tips for financial success however that we believe are vital to financial freedom. The first one has to begin with paying off credit card debt, the most toxic form of debt but when overcome creates a clear path towards massive wealth creation opportunities.

Pay off all of your Credit Card Debt

Paying off your credit card debt ranks as our number one financial success tip simply because it is a tool designed to keep you in debt as long as possible. Minimum payments create little to no progress towards paying off your debt while taking out large sums of your earned income. Credit card debt is the number one hurdle towards getting ahead financially. You have to be diligent to not fall into the credit card trap, but if you’ve fallen behind and have accumulated a revolving balance then there is a way to get out. Consider the snowball or avalanche method to pay off your credit card debt. Remember credit cards have compounding interest, meaning you pay interest over the interest already compounded each month. So make it a priority to kick this type of debt out first, make 2022 the year you got out of credit card debt and never got back into it. Pssst, Qoins helps you pay off credit card debt 8x faster with better automation tools. For those with credit card debt exceeding $15k remember that consolidation is a great tool to help you save on monthly payments and interest.

Get Paid What You're Worth and Spend Less Than You Earn

Building wealth is very simple, you have to spend less than you earn. That’s why someone making over $100k can live paycheck to paycheck (1 in 5 do) while someone with half of the earning power can be on track to being a millionaire in retirement with proper financial habits. Getting paid more in the form of career advancement or side hustles is one fight, but spending less is a separate plan that must be deployed. Think of how much you should be earning, is it in line with your skill level and experience? If not consider asking for a raise with a proper justification for your ask. Consider applying for positions that will pay you what you’re worth. If you’re not there yet, focus on becoming a top performer, upskill in your free time, and with some time you can increase your income by 20% or more. But all of these efforts are useless if you’re lifestyle inflates with your income. You don’t need a more expensive apartment, or a better car, you need to build wealth. 

Stick to a Budget

Budgeting is not something that is kept in your head, this is the easiest way to overspend and fall short of your financial goals. You need to know where your money is going, and setting up automated withdrawals whenever you get paid is the best way to stay on budget. With Qoins you can auto-save every time you get paid, you can auto-pay debts as well. Setting up bills, credit cards, and investing on autopilot is the best way to follow a budget… without ever thinking about it. 

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Build up your savings - even if it takes time.

Let’s focus on an emergency fund, an essential tool to cover your expenses in the case of an emergency so that you’re not forced to borrow money at high-interest rates like a credit card. The best thing about starting now is that even if you haven’t built a fully-funded emergency fund, your contributions can still be enough to cover emergencies along the way. If you’re having trouble paying a bill on time, or have to replace a refrigerator, or possibly your car breaks down. Emergency savings will be there to save you time and time again, so make this a priority to avoid spiraling out of control with debt. 

Save up cash to afford big purchases.

In addition to building emergency savings, saving up cash for a major purchase is another tool to avoid taking on debt. Think of purchasing a new car, for example, you know that in two years’ time your car will be unreliable and you will be looking for a new car. You can take some time today and figure out which car you’d like to purchase next and begin building savings for it to avoid taking on a higher interest car loan. If you fall short, having 80% of your car paid for is better than having nothing saved for a downpayment and then being forced into a higher rate as a result. 

When you purchase in full, in cash, you avoid paying thousands in interest and creating a debt that requires months—or, often, years—to pay back. In the meantime, that saved money can sit in a bank account and accumulate interest that can be put toward your purchase. 

These 5 tips will get you started towards building a debt-free life, fully prepared to build wealth rather than debts and loans taking out huge chunks of your hard-earned income.

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