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20 Mini Money Hacks To Save You A Lot

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20 Mini Money Hacks To Save You A Lot

If you’re like most people, you’d be happy to have more money, either to pay off debt, invest, or spend on items and experiences you love. I’m not a penny pincher but I do like easy, practical tips to save money and increase my net worth. Here are some money hacks to save you a lot and help you slowly achieve your financial dreams.

1. Hide your money…from yourself.

Begin delegating a portion of your paycheck, even if it’s a very small amount, toward savings. Have this amount automatically transferred from your paycheck to an account you can’t conveniently access, so the money never enters your checking account and you are less likely to spend it. Tricking yourself into thinking you have less per paycheck to spend will help you save.

2. Forget about late fees.

Automate your bills whenever possible. This will help you avoid those dreaded late fees.

3. Tell your raise where to go.

When you get an increase in pay at your job, automatically have that extra amount per pay period go into savings. You won’t miss it if you never see it in your checking account in the first place.

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4. Learn the language of money.

401K? Roth IRA? ROI? Cash flow? Net worth? If you want to understand savings, learn the language of money. Having an understanding of basic financial terms will help increase your sense…and cents.

5. Save for an emergency fund.

Plan for the unexpected. Year after year, there will be unplanned events that cost money, ranging from urgent home repairs to unforeseen medical expenses. Having money set aside can help greatly when those surprises occur.

6. Build multiple streams of income.

Gradually building multiple streams of income will give you access to more money to save.

7. Track your spending.

Record every dollar you spend for one month. Analyze your findings and determine if you can cut back some unnecessary spending in order to boost your savings.

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8. Have an accountability partner.

Find a friend on a similar mission to save money, and hold each other accountable. Having someone to encourage you along the way can make a big difference in attaining your savings goals.

9. Forget about the Joneses.

Quit comparing yourself to others. First of all, you don’t know other people’s financial situations; just because your coworker bought a new vehicle doesn’t necessarily mean he had the money to buy it. Secondly, trying to uphold an image of wealth may cause you to spend way more than you should, and therefore actually decrease your long-term savings. Focus on yourself and your situation, and try to do better than you did last year.

10. Don’t buy what you can’t afford.

Just because a store is offering an item for “% money down for 3 years” doesn’t mean you should buy it. And spending money on items for sale is still spending money.

11. Use cash when shopping.

Although some people use credit cards, diligently pay off the balance each month, and rack up airline miles, many of us are not as disciplined. For many of us, carrying cash when shopping is a smarter choice. It’s harder to part with cash; seeing money physically leave your hands is more difficult than swiping a card. Research shows people spend more when they buy using credit cards.

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12. Be mindful of the company you keep.

Jim Rohn, a businessman, is quoted as saying, “You are the average of the 5 people you spend the most time with.” Do you feel pressured by your friends to spend recklessly? If your goal is truly to save money, hang out with like-minded people.

13. Ask questions.

You thought an item was on sale, but it didn’t ring up on clearance in the checkout aisle? Ask. Can’t remember the balance you need to keep in your checking account to receive free checks? Ask. Not sure you understand your retirement plan at work? Ask. Many people are scared to ask financial questions, but taking an active interest in your finances is essential for you to take control of your money.

14. Embrace second-hand items.

If an item isn’t going to make you money, it might be worth purchasing it second-hand. If you’re crafty, many items can be refurbished for minimal cost. And embracing hand-me-downs for kids’ clothing can save you thousands of dollars.

15. Study yourself.

Do you overspend when you shop online? Book extravagant vacations when stressed? Are you a sucker for a latte every morning? It’s impossible to change your habits if you don’t know what they are. Studying your habits and what triggers you to spend money in the first place is a fundamental step to saving money.

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16. Take advantage of the retirement match at work.

If your employer offers free money, take it. All of it.

17. Befriend your tax accountant.

Tax accountants are a great source of information for saving money. Be sure you understand the tax benefits that accompany charitable donations and running a home-based business, if you have one.

18. Cut transportation costs.

Transportation is one of the biggest monthly costs for many people. Riding bike or walking to work, if you live close enough, can save you a lot of money plus helps the environment. If you drive your car to work, commuting with a friend can significantly decrease your costs, and make the ride more enjoyable.

19. Involve your whole family.

Talk to your spouse and children about your financial goals. Kids can help search for best prices on upcoming purchases. Also, you can encourage each other to cut costs around the house by developing eco-friendly habits including turning off lights when leaving a room. Involving your family members empowers them and they will likely want to help save, especially if they know a reward is coming for them.

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20. Reward yourself.

As you reach savings milestones, reward yourself. For example, after you have a $1,000 emergency fund saved, treat your family to a special weekend. Kids’ college saved for? Celebrate with a family vacation. You feel you’ve stashed enough for retirement? Delight in that once-in-a-lifetime experience you’ve been longing to take part in. Diligently saving money can be tough, and it’s important to relax a little and treat yourself for excellent progress.

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Dr. Kerry Petsinger

Entrepreneur, Mindset & Performance Coach, & Doctor of Physical Therapy

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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