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Low-Hanging Financial Fruit And What Comes Next

Low-Hanging Financial Fruit And What Comes Next

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    When it comes to making major changes in your financial situation, you’ll probably get some pretty standard advice for saving money: stop buying coffee every day, brown bag your lunch and start clipping coupons. That’s because these sorts of changes are low-hanging fruit. For most people, making these sorts of changes in their spending is not too difficult — and because they’re everyday habits, it’s possible to save quite a bit of money over the course of a year.

    Finding Low-Hanging Fruit

    Most financial gurus have a few favorite recommendations when it comes to the low-hanging fruit of your finances. Coffee, in particular, gets singled out for attention, over and over again. The fairly common habit of picking up coffee each morning has even been vilified as the ‘Latte Factor.’

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    But what happens after you’ve cut out coffee — or if you don’t drink coffee in the first place? The standard suggestions may not be so useful for you. Instead, it’s worth taking a look around for some low-hanging fruit of your own. There’s no automatic identifier for such an expense, but a simple way to look for savings opportunities is to look at your daily habits. That’s because anything you do day after day can yield more savings because even a small expense can add up quickly over 365 days.

    That’s the real definition of low-hanging fruit: with relatively small amounts of effort, you can get big results. Of course, just how much effort is required for a particular project can differ with something as simple as whether or not you have a coffee pot at home. When you see a financial tip that seems like it would be fairly simple, it’s worthwhile to take a look at the effort and money involved. If the effort isn’t worth the money, it’s okay to keep walking — what is low-hanging fruit for one person is the hardest apple to reach in the tree for another.

    But not all simple changes are the same. Just as there are some relatively simple steps you can take to modify your spending, there are often a few basic options for bringing in more income — such as selling off a few collectibles on eBay. You may even find low-hanging fruit when it comes to saving and investing your money: any time you can automate your savings, you can generally see a better return than if you try to handle the process manually.

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    When You Run Out Of Low-Hanging Fruit

    It can take a little while to change even small habits and work your way through all the suggestions you find from various financial advisers — but sooner or later, you’ll run out of the low-hanging fruit available in your personal situation. That point can be an ideal opportunity to stop and reassess your finances.

    For some people, the easy fixes are enough to move them to where they want to be, financially speaking. Just by cutting down on habitual spending or automating savings, some people will be able to accomplish their financial goals. For other people, though, it can take a little more to move into a financial situation where they feel comfortable. If you find yourself in that second group, it may be time to start looking at some harder steps.

    A starting point is any financial tips you passed by when focusing on simple steps. If you initially considered something not worth the effort it would require — a programmable thermostat might have tripped up one person, while calling a service provider and negotiating a lower rate would be problematic for another one.

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    Another option is aiming for some more significant changes in your lifestyle. A raise would probably make a big difference in your finances, but it may take further education or extra hours at work — it’s the opposite of low-hanging fruit. But it is probably worth working towards if you need to make a bigger difference in your finances in order to meet your goals.

    Small Changes First, Then Big Changes

    Making the easy changes first may seem like a system that won’t pay off as well as chasing a few bigger changes — even if those bigger changes are harder to arrange. But the fact of the matter is that when you’re doing something like changing your morning coffee routine, you’re likely changing an ingrained habit. It’s not going to be the easiest thing to do, but after you’ve changed one or two habits, the rest get a little easier to handle.

    That practice at changing habits can pay off when you start focusing on bigger fish. Something like going back to school to improve your paycheck is going to require a whole new set of habits, in a stressful environment. Having a little practice with the process of changing habits can come in handy in such a situation. The process, as a whole, may take longer, but it will be more likely to pay off.

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    It doesn’t hurt, either that even a couple of the simpler changes you can make to your personal finance can translate into a good amount of cash. If you can stack several smaller steps with a couple of bigger changes, you can wind up with a significant difference in your financial situation. Do the numbers yourself: look at what you can save by changing one small thing in your daily routine and then build from there.

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    Last Updated on January 2, 2019

    7 Steps For Making a New Year’s Resolution and Keeping It

    7 Steps For Making a New Year’s Resolution and Keeping It

    Are you keen to reinvent yourself this year? Or at least use the new year as a long overdue excuse to get rid of bad habits or pick up new ones?

    Yes, it’s that time of year again. The time of year when we feel as if we have to turn over a new leaf. The time when we misguidedly imagine that the arrival of a new year will magically provide the catalyst, motivation and persistence we need to reinvent ourselves.

    Traditionally, New Year’s Day is styled as the ideal time to kick start a new phase in your life and the time when you must make your all important new year’s resolution. Unfortunately, the beginning of the year is also one of the worst times to make a major change in your habits because it’s often a relatively stressful time, right in the middle of the party and vacation season.

    Don’t set yourself up for failure this year by vowing to make huge changes that will be hard to keep. Instead follow these seven steps for successfully making a new year’s resolution you can stick to for good.

    1. Just pick one thing

    If you want to change your life or your lifestyle don’t try to change the whole thing at once. It won’t work. Instead pick one area of your life to change to begin with.

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    Make it something concrete so you know exactly what change you’re planning to make. If you’re successful with the first change you can go ahead and make another change after a month or so. By making small changes one after the other, you still have the chance to be a whole new you at the end of the year and it’s a much more realistic way of doing it.

    Don’t pick a New Year’s resolution that’s bound to fail either, like running a marathon if you’re 40lbs overweight and get out of breath walking upstairs. If that’s the case resolve to walk every day. When you’ve got that habit down pat you can graduate to running in short bursts, constant running by March or April and a marathon at the end of the year. What’s the one habit you most want to change?

    2. Plan ahead

    To ensure success you need to research the change you’re making and plan ahead so you have the resources available when you need them. Here are a few things you should do to prepare and get all the systems in place ready to make your change.

    Read up on it – Go to the library and get books on the subject. Whether it’s quitting smoking, taking up running or yoga or becoming vegan there are books to help you prepare for it. Or use the Internet. If you do enough research you should even be looking forward to making the change.

    Plan for success – Get everything ready so things will run smoothly. If you’re taking up running make sure you have the trainers, clothes, hat, glasses, ipod loaded with energetic sounds at the ready. Then there can be no excuses.

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    3. Anticipate problems

    There will be problems so make a list of what they’ll be. If you think about it, you’ll be able to anticipate problems at certain times of the day, with specific people or in special situations. Once you’ve identified the times that will probably be hard work out ways to cope with them when they inevitably crop up.

    4. Pick a start date

    You don’t have to make these changes on New Year’s Day. That’s the conventional wisdom, but if you truly want to make changes then pick a day when you know you’ll be well-rested, enthusiastic and surrounded by positive people. I’ll be waiting until my kids go back to school in February.

    Sometimes picking a date doesn’t work. It’s better to wait until your whole mind and body are fully ready to take on the challenge. You’ll know when it is when the time comes.

    5. Go for it

    On the big day go for it 100%. Make a commitment and write it down on a card. You just need one short phrase you can carry in your wallet. Or keep it in your car, by your bed and on your bathroom mirror too for an extra dose of positive reinforcement.

    Your commitment card will say something like:

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    • I enjoy a clean, smoke-free life.
    • I stay calm and in control even under times of stress.
    • I’m committed to learning how to run my own business.
    • I meditate daily.

    6. Accept failure

    If you do fail and sneak a cigarette, miss a walk or shout at the kids one morning don’t hate yourself for it. Make a note of the triggers that caused this set back and vow to learn a lesson from them.

    If you know that alcohol makes you crave cigarettes and oversleep the next day cut back on it. If you know the morning rush before school makes you shout then get up earlier or prepare things the night before to make it easier on you.

    Perseverance is the key to success. Try again, keep trying and you will succeed.

    7. Plan rewards

    Small rewards are great encouragement to keep you going during the hardest first days. After that you can probably reward yourself once a week with a magazine, a long-distance call to a supportive friend, a siesta, a trip to the movies or whatever makes you tick.

    Later you can change the rewards to monthly and then at the end of the year you can pick an anniversary reward. Something that you’ll look forward to. You deserve it and you’ll have earned it.

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    Whatever your plans and goals are for this year, I’d do wish you luck with them but remember, it’s your life and you make your own luck.

    Decide what you want to do this year, plan how to get it and go for it. I’ll definitely be cheering you on.

    Are you planning to make a New Year’s resolution? What is it and is it something you’ve tried to do before or something new?

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