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7 Finance Tips From a Guy Who’s Broke

7 Finance Tips From a Guy Who’s Broke

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.

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

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Last Updated on May 21, 2019

13 Bad Habits You Need to Quit Right Away

13 Bad Habits You Need to Quit Right Away

Creating your productivity ritual — a routine that helps you to maintain a peak level of energy can get you the best out of your days.

Part of creating your productivity routine involves removing activities that drain you (what I call “kryptonites”), and that includes your bad habits.

Like it or not, bad habits are bad for you — mentally, physically, emotionally and even socially in some cases. While some bad habits are harder to quit than others, it doesn’t change the fact that you need to get rid of them. Here are 13 bad habits to quit right away:

1. Stress Eating

I used to be a serious stress eater. I would eat whenever I felt unhappy, stressed, disappointed, anxious, or even… happy! My eating had nothing to do with being hungry, and everything to do with using food to fill my emotional voids.

While eating would comfort me, this feeling was momentary and would disappear right after I was done eating. Instead, what I had left would be the same emotional void that triggered me to eat in the first place (be it unhappiness or stress), a 2,000 excess calorie intake over what I should have eaten for the day, and anger at myself for having stress ate.

I’ve since overcome stress eating. I have healthy eating habits and a healthy relationship with food today where I no longer use food as a tool to fill my emotions.

If you are a stress eater, don’t fret — here’s how to manage your stress better:

How to Manage Stress (A Step-by-Step Guide to Turn Stress Into Success)

2. Nail Biting

Not only is nail biting unhygienic, it is also socially repelling, leads to dental problems like malocclusion of the anterior teeth,[1] potentially cause stomach problems,[2] and lead to severely deformed fingernails in the long run.

People who bite their nails tend to have shorter nails than the average person; their nail plates also experience scarring and may eventually become absent.[3]

Understand what triggers your nail biting behavior and replace it with another neutral to positive habit. Make habits to break habits.

For example, if you bite your nails when you are stressed, go for a walk or listen to music instead the next time you feel stressed.

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3. Hanging out with Naysayers

We all know these people — people who play devil’s advocate to every idea you have and every goal you want to pursue. We are already our greatest self-critics, so it doesn’t help when there’s someone beside us, ever ready to pounce on what we say and tear it down.

Hang out less with these naysayers and spend more time with supportive people who share constructive feedback instead. You will be much happier this way.

Learn how to get rid of naysayers with these 10 Ways to Ignore the Naysayers and Achieve Your Dreams.

4. Being with People Who Don’t Appreciate You

Haven’t all of us been in this situation before? Trying to please people who don’t appreciate us? Bending over backwards to be there for people when they are never there for us?

While we give without expectations of return, we need to draw a line with people who don’t value us because these people damage our souls.

Stop spending time with people who don’t appreciate you, and spend more time with people who do instead.

Unsure who you should get rid of? Learn about it here: 5 Kinds of Toxic People That You Need to Get Rid of Now

5. Smoking

Smoking is one of the leading causes of preventable death globally.[4]

In just the United States alone, about 500,000 deaths are attributed to smoking-related diseases annually. A recent study estimated that as much as one-third of China’s male population will have significantly shortened life-spans due to smoking! Gender-wise, male and female smokers lose an average of 13.2 and 14.5 years of life respectively — that’s over a decade of life right there.[5]

Not only that, smoking causes pre-mature skin aging (i.e. wrinkles), yellowing of teeth, bad breath, and worse of all — jeopardy of the health of people around you, including your loved ones. Studies have shown that non-smokers exposed to second-hand smoke are at risk to many of the health problems associated with direct smoking.[6]

Smoking risks

    6. Excessive Drinking

    All of us know that drinking too much alcohol is bad for us, but do you know how bad it really is?

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    According to the National Institute on Alcohol Abuse and Alcoholism, drinking too much — be it on a single occasion or over time — can seriously damage your health:[7]

    • Brain problems: Alcohol interferes with the brain’s communication pathways, making it harder to think clearly and move with coordination.
    • Heart diseases: Cardiomyopathy – Stretching and drooping of heart muscle, Arrhythmias – Irregular heart beat, stroke, high blood pressure
    • Liver diseases: Steatosis or fatty liver, alcoholic hepatitis, fibrosis, cirrhosis
    • Pancreas problems: Pancreatitis, a dangerous inflammation and swelling of the blood vessels in the pancreas that prevents proper digestion.
    • Different types of cancer: Mouth, esophagus, throat, liver, breast

    If you drink a lot, perhaps cutting it out right away will be tough. Cut down the number of glasses you drink each time, followed by the number of times you drink a week.

    If need be, seek help from an AA group — you aren’t alone in this. Change starts from today.

    7. Eating Junk Food (Including Diet Soda)

    Junk food — they are everywhere in our society today. From McDonald’s, to KFC, to Burger King, to 24-hour takeouts, junk food such as fries, highly processed burgers and sodas has become a staple in our society today.

    If you think, “Hey, but junk food is tasty!”, think again:

    A study by Paul Johnson and Paul Kenny suggests that junk food consumption alters brain activity in a way similar to addictive drugs like cocaine and heroin.[8]

    “After many weeks with unlimited access to junk food, the pleasure centers of rat brains became desensitized, requiring more food for pleasure.”

    And you wonder why you seem to crave fast food when you just had some the day before?

    While it may not be possible to remove junk food completely from our diet right away, we can reduce our junk food consumption starting today. Instead of soda, opt for a fruit juice (fresh juice, not the carbonated kind) or mineral water. Instead of fries, switch to mashed potato, a salad, or rice (many food outlets allow for this today). Instead of a fried meat patty, go for a grilled one.

    Where possible, opt for healthy food joints like salad bars and delis as opposed to fast food outlets. Every little step goes a long way.

    Here’re some healthy snacks ideas for you: 15 Healthy Snacks You Should Always Have At Home

    8. Eating Too Much Red Meat

    There has been conclusive evidence that consumption of red meat increases the risk of colorectal cancer; and suggestive evidence that it increases the risk of oesophageal cancer, lung cancer, pancreatic cancer, and endometrial cancer.

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    In addition, some studies have linked consumption of large quantities of red meat with breast cancer, stomach cancer, lymphoma, bladder cancer, lung cancer and prostate cancer![9]

    Personally, I’m a vegetarian so I don’t consume red meat, but for those of you who consume red meat, do watch out and limit your intake — better still, cut it out of your diet. World Cancer Research Fund recommends limiting intake of red meat to less than 300g (11 oz) cooked weight per week, “very little, if any of which to be processed.”

    Of if you’re thinking about becoming a vegetarian, check out this guide: 5 Practical Tips For Starting a Vegetarian Lifestyle

    9. Watching Too Much TV

    I stopped watching TV since eight years ago and I have never regretted it. Every once in a while I will switch on the telly to see what is on, and then I will switch it off because it’s just the same boring shtick over and over again.

    Watching TV, particularly well-written dramas, can be a good way to unwind. However, remember that TV isn’t your life.

    Spending three hours every night watching TV will not change your life for the better. Rather, using that time to reflect on your life, take stock, and take action on your goals will.

    It’s not easy to remove TV from your daily routine right away, but follow these 6 Steps To Remove TV From Your Life.

    10. Being Late

    Not only is being late being rude to others, it also means that you’re always rushing from one place to another, playing catch up in your agenda, and having to apologize to every person you meet.

    Stop being late and not being punctual, but practice being early instead. Target to arrive 15 minutes earlier before any appointment and bring along something to do in those 15 minutes (or longer if the other person turns out to be late). Then you can stop playing catch up and stay ahead in life.

    Learn more tips about how to be more punctual here: How to Be On Time Every Time

    11. Being in Bad Relationships

    Are you always dating the wrong guys/girls? Do you end up with jerks all the time? Well, you may not be able to stop yourself from meeting bad partners but you can certainly stop yourself from furthering contact with them, spending time with them, or even… entering into a relationship with them.

    I used to invest myself in this guy who was nothing but toxic for me. After a good five months of experiencing nothing but getting burned over and over again, I realized that he was a total waste of my time and I deserved better. I decided to cut him off, and it was soon after that I met my soulmate.

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    Learn about why you shouldn’t stay in a bad relationship and how to deal with it if you’re in one: Why Trying Hard to Stay in an Unhappy Relationship Is Not Love, but Fear

    12. Leaving Things to the Last Minute

    Burning the midnight oil isn’t fun — it’s exhausting.

    Those of you who got through college by burning the midnight oil would have learned this the hard way. Not only is it damaging for your body, it is also mentally draining as you’re constantly in a hyper-tense mode, feeling anxious about whether you can finish your work on time.

    Start today on a new note. Rather than react to your deadlines, be proactive about them by planning ahead, identifying what needs to be done for the week, and getting things done in advance.

    By staying ahead of your tasks, you can also use your extra time to plan ahead in your life and get more things done.

    Take a look at this guide and learn how to stop procrastinating: Procrastination – A Step-By-Step Guide to Stop Procrastinating

    13. Focusing on the Negatives

    In every situation, there are two ways you can react: zoom down to the problem areas and crib about how things aren’t the way you want, or celebrate the areas that are going well and work on making everything better.

    Many of us see the importance of doing the latter but in practice, we do the former. Why though? Criticizing and focusing on the negatives is easy but it doesn’t empower nor inspire us to be better.

    Make a change — for every negative encounter you run into, I challenge you to identify three things that are good about it. Practice doing this for one week, and by the end of the week you’ll find that your first instinct is to think positive, not negative.

    And here’re even more ways to help you stay positive: 11 Tips for Maintaining your Positive Attitude

    The Bottom Line

    So here you find the 13 most common bad habits and their consequences on your mind and body. The good news’ you can quit them all.

    Just spot out your own bad habits and take my suggestions to quit them. Then you’ll find your life a lot healthier and happier!

    Need more tips to break your bad habits? Check out these articles:

    Featured photo credit: Pexels via pexels.com

    Reference

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