Enhance your personal finances


  1. Regular savings

You should save regularly 10% of your gross income. Open a savings account and put the money there right after you get your paycheck. Ask your bank about their automatic saving services.

“A penny saved is a penny earned.” Terhi Majasalmi

  1. Save for a buffer fund

Save the amount of money you would need for your living costs in the time period of 6 to 24 months in case you lose your job. Think about your worst case scenario and think how much you would need to survive.

  1. Thriftiness

If you want to save a bigger amount of money, compromise on the standard of living and learn to be thrifty. Reduce costs and prolong acquisition of new goods. For small purchases, think for a week before buying them. With expensive purchases, think for a month. Think about what you really need.

“20% of the shopping brings 80% of the pleasure.” Terhi Majasalmi

“Being frugal means you can live more, give more, and love what you’ve got.  It means you live authentically within your budget, your lifestyle isn’t a giant lie.  When you live frugally, you have nothing to hide- you can be honest about who you are and you can breathe deeply knowing you’re not being crushed by mountains of debt”. Shannyn -Frugal Beautiful blog

  1. Additional income

Other option is to think about getting more income, perhaps you could find another job or consider starting a business. Maybe you have a business idea and some expertise you could exploit. Think about ways how to grow and expand your knowledge and building your personal capital.

  1. Planning

Make a budget. Make your own profit and loss account and balance sheet. Define a goal, make a plan and stick to it. After a year you can see what kind of progress you have made. You should keep track of your receipts and find out your spending habits. If you’re shopping too much, try a spending freeze for a month. Kraig, the blogger of Createmyindependence, recommends an application called Mint to follow your spending. You can get it for free from mint.com. You just have to log in often to audit your transactions.

“Even if the money is not the most important thing in life, well-managed economy facilitates the journey towards economic independency.” Terhi Majasalmi

  1. Investing

If you have extra money, you shouldn’t leave it to a bank account with low interest. Get to know different types of investments and use the knowledge of experienced investors. If you start investing, think about diversifying the targets, lowering the risks and protecting your investment.



The book Totuus taloudestasi / The truth about your economy by Terhi Majasalmi

The author is an entrepreneur, coach and investor. She also writes a blog called Talousvalmentaja-Terhi / Economic coach-Terhi for Iltasanomat magazine and you may have seen her in the show Kirsi ja himoshoppaajat / Kirsi and the shopaholics.


On the website you can also order a sample of the book and a free copy of an e-book called Himoshoppaajan selviytymisopas / Survival guide for a shopaholic!


Shannyn writes a blog about the thrifty lifestyle. If you want to save your coins in a jar, check out the Mason Jar Money Method!


Kraig writes a blog about creating financial independence by living below your means and building a business. You can get a free copy of his Ultimate Saver’s Toolkit by singing up for the newsletter.

Naiset ja raha / Women and Money, Leila Simonen 2008

This book tells about the basics of managing personal finances. The book contains real life examples and questions to think about. There is also a lot of talk about the feelings related to money.


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