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4 Ways To Avoid Being Broke

4 Ways To Avoid Being Broke

In today’s world, we are now running faster than ever to be able to make more every hour. We compete with the people next to us and people on the opposite end of the continent to make our mark and to make our living.

However, as the number of millionaires increases, the number of people reaching bankruptcy and being broke is ultimately increasing too. News of the once rich and famous going broke often pops up in the Financial Report.

How can you avoid the mistakes of the once rich who’ve gone broke? Here are some common-sense tips to help you avoid being broke.

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    1. Don’t purchase what you can’t afford just to impress.

    These days, we are all looking to impress. Looking less is unacceptable in certain parts of the world. While some believe beauty is found within, others believe that beauty is in the Prada you wear and the sports car you drive. So, to impress those who really don’t matter, we spend our paychecks in a department store.

    Take this lesson from history: one should never spend beyond their means. If you can’t afford it, then find alternatives according to your means. This is a survival mechanism which allows you to save and prevents you from going into debt. Getting away from your need to impress is a great way to avoid excessive spending.

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      2. Freeze your credit cards in your freezer.

      The trend these days, instead of carrying cash, is carrying different cards from different banks with different interests in your purse or wallet. You swipe at every single purchase with your mind on your purchase and ignore the bills you’ve been racking up. According to research, one of the biggest reasons for an individual to be broke is overspending on multiple credit cards.

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      Running away and changing your identity is one option, while another is to declare bankruptcy. To avoid either of these, try going old school and carrying cash instead. This limits what you can spend in the moment. If the temptation of using your credit cards is too great, try freezing them in ice in your freezer. This adds another obstacle between you and your next charge.

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        3. Invest smartly, not impulsively.

        Investing is a great way to make money and protect your assets. However, we aren’t all experts in investing. We may be great moneymakers, but the talent of wise investing doesn’t come to us all. Investing emotionally is the same as gambling — we gamble impulsively, hence we lose big or win big.

        As a precaution, always have an advisor who is trustworthy and an expert on investing either in real estate or stock markets. However, research on your part is also important. It will give you the confidence and knowledge you need to make smart investments. After some time, you will be used to investing and your experience will be your greatest advisor.

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        Concept of investment with eggs in the same basket.

          4. Focus on diversifying your assets.

          In the dating world, we are often told to focus on differences rather than similarities. Why? Because it gives us the confidence to secure our emotional selves. Why not act the same way with your assets?

          In the 2000s, the “Get Rich Quick” scheme was on the rise. Many went broke when they invested all their assets in one scheme. History teaches us to never leave all our eggs in one basket. This is an important lesson when it comes to investing.

          Investigate how you can expand your assets and diversify your investments in different markets and different sectors. Read books to help you understand how you can best go about diversifying your assets.

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          Thinking about finances is always uncomfortable and spending is always tempting. However, in today’s world, your assets and your bank balance will give you a sense of security, while extravagant spending may leave you at the bottom of the barrel.

          Featured photo credit: VIKTOR HANACEK via picjumbo.com

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          Published on July 4, 2018

          Top 10 Recommendations on Money Management Apps

          Top 10 Recommendations on Money Management Apps

          Don’t want to overspend your budget, swipe your credit card too many times, and feel like a financial mess? Instead of beating yourself up for the bad financial decisions you’ve ever made, create a new plan!

          The solution is simple, save more and spend less. But, we all know it’s easier said than done.

          One problem is finding quality apps that save you time and money, and aren’t just hype.

          Luckily, there’re many great money management apps available at your fingertips. Here are 10 reliable money management apps that can help you save money, and crush debt.

          1. Personal Capital

            When was the last time you’ve tracked your net worth? Probably months ago or maybe never. Personal Capital allows you to easily track your net worth and plan for retirement.

            Here are some of its main features:

            • Sync many investment accounts, and expenses (mortgage, credit cards, etc.) in one place
            • Discover hidden fees and how much they’re affecting your retirement plan
            • Wealth management for investors requiring a long-term strategy

            With Personal you’re free to track your expenses and net worth.

            Available for: iOS and Android

            2. Mint

              If your smartphone could only install a few apps, Mint would be one of them. Why? Because Mint tracks all your balances and bills in one place.

              Here are some of its main features:

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              • Effortlessly track all your bills and balances in one dashboard
              • Categorized expenses to understand where you spend your money
              • Uncover hidden fees, and determine your investment style with sophisticated retirement tools.

              Feel at ease with managing your money by a reputable company that isn’t going anywhere.

              Available for: iOS and Android

              3. YNAB

                Everyone needs a budget, there’s no way around it. YNAB (You Need A Budget) is an easy to use app that will change the way you think about money. Their motto is to “give every dollar a job”, and you’ll quickly discover why.

                Here are some of its main features:

                • Easily sync all bank accounts in one place
                • Visually see your debt paying progress with eye-catching charts and notifications
                • Customized categories setting saving goals

                The best part about YNAB is the community that comes along with it. You can hop on the YNAB forum to receive support, listen to the YNAB Podcast or stay tuned for their weekly videos.

                Available for: iOS and Android

                4. Wealthfront

                  Albert Einstein once said “compound interest is the eight wonder in the world”, and for a very good reason. The problem is, most people are scared or unwilling to learn the basics of investing. This is why Wealthfront is the perfect solution for the hands-off investors.

                  Here are some of its main features:

                  • Variety of investment account options including IRA, Roth IRA, and more
                  • Your portfolio composed of 7 different asset classes
                  • Automatically rebalanced portfolio
                  • Daily tax loss harvesting

                  Wealthfront is perfect for people requiring investment guidance, or prefer a hands-off solution.

                  Available for: iOS and Android

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                  5. Clarity Money

                    If you’re staying on top of your budget but want to take your finances to the next level, Clarity Money can help you. Clarity Money helps you stay under budget and build a personalized savings plan.

                    Here are some of its main features:

                    • Easily cancel subscriptions with one click
                    • Synchronize bank accounts fast
                    • Transfer money effortlessly between different accounts

                    Clarity Money isn’t an app that does it all. But, it does make transferring money and canceling subscriptions fast and efficient.

                    Available for: iOS and Android

                    6. Acorns

                      What if there was a way to quickly gain confidence in investing your money, without too much risk? There is, and Acorns is your solution. With Acorns’s technology, you’re able to make investments as small as $5.

                      Here are some of its main features:

                      • Automatic contribution option
                      • Customized portfolio tailored to your needs
                      • Low management fees ranging from $1-$2 per month

                      Stop wasting dollars on expensive coffee. Instead, invest them towards a brighter financial future.

                      Available for: iOS and Android

                      7. Albert

                        Do you budget by only subtracting your expenses from your income? If so, how would you discover any overpayments or extra money you could save? This is where Albert shines, and it does it all free.

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                        Here are some of its main features:

                        • Receive notifications for overpayments, hidden fees, and low balances
                        • An Automatic budget that’s built around your spending and income
                        • Easily track debt and set new financial goals

                        While Albert does offer a paid option, most of its core features are FREE. So, what better option to save?

                        Available for: iOS

                        8. Prism

                          Have you recently forgot to pay a bill because life got in the way? Prism automatically tracks your bills and syncs your bank accounts in one place.

                          Here are some of its main features:

                          • View all your account balances in one glance
                          • Bill due dates are automatically pulled and tracked
                          • Receive early reminders for upcoming bills

                          If your budget is on “fleek” but can’t seem to stay on top of your bills, Prism is your go-to app.

                          Available for: iOS, Android, Windows, Amazon

                          9. Mvelopes

                            Remember hearing about people using envelopes to budget their money? Well, Mvelopes is the new envelope system for this generation. Easily create monthly budgets and track your saving goals.

                            Here are some of its main features:

                            • Connect unlimited bank accounts
                            • Real-time budgeting with auto transaction syncing
                            • Low monthly $4 fee or $40 annual

                            Mvelopes can help you crush debt, save more, and help you stop overspending. With its low monthly fee, it’s worth a try.

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                            Available for: iOS and Android

                            10. Wallaby

                              Most people don’t have time to track their credit card’s changing rewards and interest rates. Because of this, you need help reaping the most of your credit card’s rewards. Wallaby is the app that will help you do just that.

                              Here are some of its main features:

                              • Automatic recommendations for the best credit card to use for each transaction
                              • A friendly user interface, displaying credit cards with their corresponding images
                              • Free to use

                              If you’re using the same credit card to make your purchases, you may be leaving money on the table. Give Wallaby a try if you’re ready to maximize your credit card’s rewards.

                              Available for: iOS and Android

                              Take control of your finances and experience financial freedom

                              Picture yourself staying on budget and saving more money than you’d ever imagined.

                              It took hard work and dedication but you’d finally learned how to manage your money. You have to start taking control of your spending and saving habits.

                              You now have a list of reliable apps that can help you build better money habits, what are you waiting for?

                              Featured photo credit: Pexels via pexels.com

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