7 Finance Tips From a Guy Who’s Broke

June 29 by | 23 comments | Lifehack, Lifestyle | Tags: , , , , , , , ,

Because I’m dead center of trying to figure out my own personal financial Rubik’s Cube, and because I’ve been listening every day to the Financial Aid Podcast, I’ve had finance hacks on the brain. Besides, Graeme wanted me to talk about them, too. So, here goes 7 tips on finance from a guy who’s broke:

  1. Keep the change- Whenever you pay for anything with cash, always pay with bills. Then, take the coins at the end of the day and put them in a big jar. Use this money for the occasional treat, or put it towards a vacation. It’s a painless way to save some cash.
  2. An Anti-Raise- There’s great advice out there that says, when you receive your annual raise, adjust your direct deposit such that the raise doesn’t ever hit your paycheck. Instead, shunt it off into savings, or into your 401K, etc. Just don’t let it hit your pocket. Well, if you’re me and you never took that advice, consider giving yourself an anti-raise as a way to start fixing your finances. I called up my bank and had them put roughly 5% of my pay check every period into my Savings account. When I get a decent little chunk in there, I’ll pay off a few things, and then transfer the rest into investments.
  3. Pay Debt vs. Save Up- If you’re really in a bind and not sure where to start, nail your credit cards and bigger loans (not counting your mortgage) before socking away money in savings or money market accounts. Why? Because most credit cards have interest rates that will negate any effort of saving if you’re carrying a balance.
  4. Negotiate a Better Card- There are tons of credit card companies out there. If you’re trying to put your house in order, shop around for the possibility of transferring your balance into a low or zero-percent rate so you can get a little relief. Use that relief to get the card paid down to zero as fast as possible. BONUS HACK: Often times, once you know you have another option, you can call your current card company, tell them you’re getting ready to transfer your balance to another provider. They’ll sometimes (often?) offer you the same deal that the new company is offering, and I think that’s better, from a credit record point of view.
  5. Multiply Tiny Expenditures- Say you’re stopping by the local coffee shop for a large iced coffee and a bagel every morning. Say it costs $6. You might think, “Well, that’s not too bad. I didn’t have time at home anyway.”  But, $6 x 5 days = $30 a week on breakfast alone. If you spent even $15 ahead of time on grocery options that gave you things you can take with you from home, that’d cut that cost in half. Look also at magazine subscriptions and ask whether the value you’re saving off the cover price is really the same as whether you read the magazine every month. Ditto your cable TV service. Do you need all the channels you’re paying for?
  6. Consider Your Entertainment Budget- Are you paying for cable, Netflix, movies in the theater, live concerts, and more? If you threw your weekly revenue amount onto a spreadsheet, showing what you made, how much you paid in rent, bills, food, and other expenses, and then had a break-out column for entertainment, what percentage of the cash you’re spending in a given week or month would your entertainment budget be? How about if you add in your hobby spending, like that new lens for your camera, or that replacement iPod? How does that impact the way you see your finances.
  7. Plug the Holes- I learned this one when reading about adding a solar power system to a standard electrical system. The author of the article said that he was able to save money on his energy bill WITHOUT building the solar power system by doing a simple audit in his home. He found these items to be power-suckers (and thus expenses to you): modern TVs and DVD players. If they’re plugged in, most of them are drawing a significant amount of power to be in “standby” mode instead of off. Ditto your power supplies for recharging, like your battery charger for your cell phone, your digital camera battery charger, etc. Go for a walk around your house and see how many devices are plugged in that are drawing power without being used.  BONUS HACK: Put all your chargers on a power strip with its own off-switch, and keep the whole strip turned off when you’re not charging a device.

Your mileage may vary, and like I said in the title, I’m no expert, but because I’m working on this actively, you might find these tips to be pertinent to your own situation. But truly, YOU are the experts. Come on! Light up the comment section, or better still, add to our wiki !  Tell us your best finance and money-saving tips.

-Chris Brogan makes almost no money from [chrisbrogan.com].

Chris Brogan writes about self-improvement and creativity at [chrisbrogan.com]

  • george

    No wonder you’re broke. That last bonus tip is a star – why would you like to switch on all the chargers when you’re only charging one thing? The induction ring of every one of your chargers is still powered, even if you’re not actually chrging, which means you expend as much energy on charging your phone as if you were charging every other devise you had at the same time.

    You want to have only one socket for all your chargers, so that you only have one plugged in at a time.

  • http://mallinson.us Erik Mallinson

    California just passed the Vampire Slayer Act which labels and limits how much electricity chargers and things suck up when not in use… check it out

  • http://http//blog.financenewstoday.com FNToday

    You are on the right track. It’s good to pay your bills on time, but don’t forget the importance of having an emergency fund.

  • Pingback: Meshio.Com » Blog Archive » Personal Finance Tips: Broke Man’s Guide

  • http://www.getrichslowly.org/blog/ J.D. @ Get Rich Slowly

    For the most part, this is good advice, though I have quibbles about the stuff addressing credit.

    If you’re really broke, and if you’re really having trouble with credit, then the best thing you can do is to destroy your credit cards. DO NOT USE THEM. Stop relying on them. Who cares if your credit score will take a hit? It’s miniscule compared to the pain that you can labor under by not getting rid of them. It’s too easy to rationalize their use. (Just be sure not to close credit accounts until you’ve paid off balances.) STOP USING CREDIT.

    Also: while I, too, took the “pay off debt before working on the emergency fund” approach, many experts advise against it. If you’re beset by some emergency while paying off debt, and you don’t have an emergency fund, guess what happens? You build more debt. What I recommend is that you attack the debt, but begin setting aside some portion every month toward an emergency fund. This is very important. And forget the “you need three to six months of salary for an emergency fund” advice. That’s ludicrous. How many emergencies have you *ever* heard of that require that kind of cash? Save up $1000, maybe $100 per month, and make that your emergency fund. Don’t touch it. And pay off debt at the same time.

    You know where to find me for more advice. :)

  • Pingback: Soon to be Debt Free! » 7 Finance Tips From a Guy Who’s Broke

  • http://www.xtrememind.com Power Persuasion

    Credit cards are great. They helped me expand my business multiple fold. The downside is that constant usage eventually leads to spending beyond one’s means.

    Which happened to me when I found myself 20,000USD in debt.

    Leaving the extra cards at home helps solve the problem. Bring one with a throttled limit.

  • Pingback: Financial Aid Podcast Daily Free MP3 Internet Radio » Financial Aid Podcast #293 : June 30, 2006

  • Sonja Duijvesteijn

    Having to pay for private school leaves me in debt for 45.000 euro’s (about 70.000 dollars). My trick is not to worry about it too much but just accept I have a huge debt.

    So, every month I first pay of my interest and a part of my loan, and from what’s left I live. And that’s all, so no extra loans for anything, no credit cards (that’s really easy in Holland, we don’t use those anyway). If you can’t buy something you can’t it’s as easy as that.

    Sure, this means I don’t have much to spend, however in time debt decreases, and that means interest decreases. Less interest means the same amount is being paid back while it takes less money per month. Meaning, over time I’ll slowly get more money to spend.

    So all I do is once per year:
    - Check total debt and call the bank to automatically pay of a certain amount per month + interest.
    - If I get a raise I’ll put part of it in my pocket and partially towards paying of my debt

    And for the rest of the year:
    Don’t take out any more loans.

    However the loan I have is like a credit card, meaning that if need arises I can use that as an emergency fund, meaning I don’t need to save any money that could go towards paying of my debt and thus saving on interest. This I’ll use only when absolutely necessary.

    By not thinking about it too much and just living with less to spend while my loan is basically being paid of automaticcaly I cope with my huge debt. And in reality it’s not that much of a burden from day to day to live with.

    To summarize: Don’t worry about debt, just make sure you arrange for it to be paid of with your wages automatically.

  • http://www.laptops-battery-online.com Laptop battery

    good

  • http://www.best-battery-online.com laptop battery

    Put all your chargers on a power strip with its own off-switch, and keep the whole strip turned off when you’re not charging a device.

  • http://www.itsbattery.com laptop battery

    Put all your chargers on a power strip with its own off-switch,

  • http://www.batterystores.ca laptop battery

    and keep the whole strip turned off when you’re not charging a device.

  • 1019351569

    Our Christian Louboutin Outlet online store offers a variety of styles of shoes. Our website offers a variety of styles of shoes, these Christian Louboutin Online shoes are the favorite of girls. They are the best choice for you most to fashion. These Christian Louboutin Outlet Online shoes are one of our shops are selling shoes.

  • 1019351569

    In 1999, Deckers company began to assert their trademark, Australia sent the manufacturer of the legal suspension letter (cease and desist). The new century,  UGGStore Deckers companies invested $ 8 million to advertise on the market, while part celebrity UGG appreciation plus, UGG snow boots began to surge in demand. Australia manufacturers started online sales of UGG boots, Middletons Deckers in Melbourne law firm began to seriously work to cut off Australia sales of the company. In 2004, Deckers to several Australia manufacturer sent the legal suspension letter (cease and desist),  UGGS Outlet including Mortels in sheep’s clothing manufacturer, to stop them from continuing on the eBay sales, or use the trademark in the domain name.

  • 1019351569

    Snow boots of authenticity real resistance both from cortex and the soles are very dirty, especially the soles, was not easily stained with dust. If you go out daily to go home, ugg outlet  you can take hair dryer (it must be cold! Never use hot air! ) Blowing through on it, blew a one or two months, should not be too long a time, two minutes enough. Support plates on shoes inside the best-and-drop, did not use newspapers instead, the effect is very good. Smooth paper No,  Australia ugg  General newspapers best also to foot odor and moisture, not full, slightly can sustain good, leave gaps. On the outside of the plastic bags, not sealed in a dry dark place. Ugg shoes.

  • 1019351569

    Gets the European fashion colour ” Vibrams five fingers shoes”, the placed on-battling prevent slippery polyamide material includes pure leather soles surface, with exquisite vamp the hands crafted crafts, its personalized Vibrams shoes mind – five “toes”, although stimulate ft muscle, promote the blood stream circulation, still can improve activities range, particularly right for engaged in hiking, climb, fitness and sports, is presently our planet’s only can provide a barefoot walk brings endless happiness.

  • 1019351569

    In 1892, a young man in New York City named David Abercrombie founded the David t. Abercrombie company, company sales advanced outdoor activities and hunting supplies Abercrombie Sale. His customers are some of the money, eat nothing beat Hunt’s uncle, one of the most faithful, was also a successful lawyer, is Ezra Fitch. Ezra Fitch after a long litigation career find life boring, than to sell hunting fun. Finally, in 1904, he succeeded in convincing a Abercrombie do not know how to refuse, he joined the company, from the company name from the difficult to read the Abercrombie become long and hard to read and Abercrombie&Fitch. However, the combination of the two is like marriage, good marriage in everything it’s OK to fight before marriage. Abercrombie Store Abercrombie Fitch conservative attitudes are often forced to have to think of the rapid expansion of catching mad. At this time the A&F is a rich providing sporting goods supplier.

  • 1019351569

    Straight hair is also called electric splint, popular called splint, hair is by direct current heating heating heating or MCH or PTC, conduction to the aluminum heating plates or ceramic plate. GHD Hair Straightener  Hair straightener, Gu Ming TU Nghia is straightened hair, hair by heating elements heat, softening and cooling, to achieve the purpose of straight hair. Straight hair now, you can either straighten and volume. Previous hair straightener, the main users are professional salons Barber from 07 Europe and North America had entered the family personal market, in the home can give the hair SPA. 2010 hair straightener will enter the domestic market in China will develop into a must-have products for personal care, just like comb, popular. chi Hair Straightener

  • 1019351569

    Outdoor sportswear’s door has been opened since 1994, more and more they are dressed in more occasions. From 94 to 98 Moncler has become the European region and the world’s most prominent retailers, only in Italy, and Japan, and Germany, shop moncler online Australia, Switzerland and the United Kingdom, and Sweden, and Norway, and Denmark in the movement of those who shop or boutique to buy Moncler famous things. But really makes brand restructuring is to be 1998 pepper industry last year under the FinPart group initiative. After continued the reorganization of the strategic plan before, in support of the Corporation FinPart Moncler to develop more product line, the full potential of the brand value. Moncler online Appears in the television advertisement was born in the mountains, living in the city’s image became a classic. Moncler jackets of cotton clothing in the cold season, when skiing, and even on elegant occasions recognized essential items.

  • Abi Wang

    ghd uk is designed to create easy styles and texture, the Ghd Australia combines advanced ceramic technology which spreads evenly over the cushioned paddles.The Ghd Australia conducts heat fast and retains it more effiently thanks to its unique built-in microprocessor. This fantastic gift set includes the new GHD IV, which has a lovely glossy finish with a swirling effect floral pattern along the barrel of the Chi Camo Collection Flat Iron
    The cold winter is coming, you can choose a Ugg Boots to welcome the winter. Ugg Online Store

  • 1019351569

    ugg boots outlet Color of UGG boots first introduced the garbage, just like classic black, chestnut, and chocolate. The three colors are all in the dull colors. Overall popularity on the world, UGG boots developed many more styles and add more colors to choose from. They face the new UGG. And even making children want to have a colorful UGGs. There are three kinds of ugg boots outlet, classic, color and other popular color of light. First of all, the classic colors, including black, chestnut, sand, and chocolate. Although most of these colors begin to UGGs,they’were is still very popular. Because they can easily adapt any clothes or jeans. If you want to maintain a low, you can select the classic. Second is the light color is pink, light green sea and the beautiful. Pink, Aqua sea and the beautiful UGGs in the use of the new color. Is a dry season in winter, these give a feeling of warmth in the cold weather. In addition, the uggs shoes with pink, light green color of the sea, and Rose looked so cute. This is why more and more children love to wear UGGs.Other fashion colors is the third set. Leopard print must be in today’s hottest fashion elements. UGG boots also merged into their boots in this fashion. Classic short/tall boots Leopard print is to boot one of the most popular UGG collection range. Another fashionable color is purple. Purple is royalty. Mysterious colors, purple is associated with nobility and spirituality. UGGs.Here allows you to see some celebrities found violet is UGG boots are just some personal thoughts. I hope this can help you choose a colorful UGGS Shoes Outlet.

    Moncler Clearance Did not deny that the online store are now so many different shops sell different products. People’s lives every day now are busy, we don’t have enough time to go shopping, most people start shopping online. I now rely on an online store, online shopping journey began. Every time I want to buy things, always looking for high reliability, high quality online shops, but I found it difficult to find a good sale. I have the experience to tell Hello MONCLER online store, I bought MONCLER jackets, they can provide the best service, I am very satisfied. If you find that other people are very fashion, would you be filtered, and take this cheap and high quality Moncler Clearance, might be a good choice. Moncler is good fashion design and quality known to be very many because they have specific design vests, jackets and other apparel fashion label. In this way, when everyone is worried about fashion, Moncler have become increasingly popular. How it works, the jacket and boots and shoes, Moncler coats industry for many years. Walk free Jacket Women grants you experience the charm, luxurious, warm and enjoy outstanding MONCLER MONCLER world of fashion. Now, discount MONCLER down long’s best selling women in our online store. Moncler fashion is available to women and then to the low speed may be any other place. For all projects, like a jacket, vest, jacket, t shirts, shoes, sandals and accessories is provided by the original manufacturer of high quality fabric. Online shopping is now capture the trend throughout the world. Moncler childrenand vest is very warm and comfortable. You need not go hunting are not expensive shop. Just go to this MONCLER online store and get the entire product range from the selection. It can help you enjoy a comfortable and stylish fashion world. If you are a fashion person, busy work well, if you want to be an experienced online shoppers, you can’t miss this store Moncler Clearance.

  • http://www.facebook.com/profile.php?id=1368412972 Carl de Malmanche

    Paying debt vs saving.  It actually works better paying the small items off first.  So unless you got some frightful differences (eg choice between 3000@27%, or 500@interest:disqus free) its better to nail the small stuff, and then use the extra cash to pay the bigger stuff faster.  It costs a little more in the long run, but the freed up cash is a motivator and can help with genuine emergencies, and unlike the tackle the biggies first – my systems works!   ps 3months is about the most people can knuckle-down at a stretch before blowing their stress level.