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20 Mini Money Hacks To Save You A Lot

20 Mini Money Hacks To Save You A Lot

Do you like to save money? Dumb question, right – you work hard for your money, so you want to keep as much of it as possible. There are plenty of ways to save money without spending hours to do so. Here are 20 simple mini money saving hacks that can help you save a lot. Let’s get straight to the point and start saving…

1. Put your savings on auto-pilot

You can automate just about everything; and you should. It takes a lot of weight off your shoulders and frees up your time. Saving is easy to automate with online banking – simply set up an automatic transfer from your checking to your savings each month… Or try Digit! Digit is a free tool that automatically transfers different amounts from your checking account to your savings. It’s an intelligent tool that knows when you can and can’t afford to save; but don’t worry, if for some reason Digit causes you to overdraft by taking too much, they will fully reimburse any fees and charges (though it’s so smart I’ve never even heard of it causing an overdraft).

2. Make a meal plan

When people ask how my wife and I feed our family of six for under $400/month, I have two words: “meal plan”. Planning your meals will save you a ton. It eliminates buying extra food that you don’t need. It also helps you plan ahead for making more affordable meals, rather than buying what looks good when you’re at the grocery store.  I’ll go over how we make our meal plans even cheaper in the next point.

3. Plan meals around sales

You don’t have to spend hours going through sale papers to find the best deals on everything. Just make your meal plan, but leave the specifics open. For example, one of your meals could be a stir-fry, so you need meat, veggies and a grain. When you get to the store, buy the best-priced meat and veggies. Then look for a grain, like rice or quinoa and buy whatever is the most cost-effective, weighing the price and health benefits.

4. Drink more water

This may seem obvious but the statistics show that it isn’t. You’ll save a lot of money if you stop buying the 24 packs of soda and bottles of juice. Bottled water is cheap – tap water is cheaper. There are many great options for filtering if you’re not a fan of the tap taste. Weigh the cost and see whether you prefer bottled or tap. When you’re eating out, a family of six can easily save $12-$20 per meal just by drinking water instead of soft drinks.

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5. Set an automatic budget

There are plenty of free services like Mint and Personal Capital that allow you to link your accounts and automatically track your budget. If you’re not one for spreadsheets and inputting numbers, this is for you. You are able to view it and oversee the budget, but once you set your categories everything is automatically sorted for you. Occasionally something will go into the wrong category, but it’s easy to switch it and change the category for all future transactions.

6. Set a plan to pay off debt

If you want to get out of debt, you need a plan. There are a few options, but the two most common are the debt snowball and the debt avalanche. How do they work? For the debt snowball you simply write down all your debts from the smallest balance to the largest, then you use any extra money to pay off the smallest balance first. Once that’s paid off, take that payment plus any extra money, and put it on the next smallest balance until you’re debt free. With the debt avalanche it’s the same idea, except you sort by interest rate (highest to lowest) instead of by balance.  The debt avalanche will save you more money in interest, but you may prefer the small wins that the debt snowball provides in the beginning.

7. Get a second job

If you’re trying to reach a goal that seems to be taking longer than you’d like, you may want a second a job. It’s not forever; just a temporary job to get past whatever situation you’re in. If you’re in debt a second job is a great way to pay it off faster. If you’re building an emergency fund: get a second job to get it knocked out. The service industry is great for this, such as waiting tables or delivering pizzas. Service jobs are great for maximizing your extra working hours, since you’ll be getting tips and likely making more than you would at a regular hourly job.  If you aren’t able to get a second job then don’t worry!  There are plenty of other ways below to save money without working more.

8. Challenge everything

Challenge every single expense you have. Do you really need cable? What about those magazine subscriptions that you don’t read? Both of them cost money on their own and the ads could possibly persuade you to spend even more. Odds are you can cut something out. Perhaps you’ve been paying for a service so long that it’s second nature? It’s time for a challenge and here’s how to do it:

  1. Write down every single expense you have
  2. Look for expenses you can fully cut out
  3. Find ways to save money on the remaining expenses

9. Compare insurance rates

When was the last time you checked insurance rates? This is something you should be doing annually. The cheapest isn’t always the best, but usually you’ll find that you can get the same coverage for less money if you shop around. Once a year take a look at all your insurance policies. Call around or go online and see if you can find better rates. Most of the time you can!

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10. Use coupons wisely

There are primarily two crowds when it comes to coupons: the first crowd says coupons aren’t worth the time you spend cutting them; the second crowd says coupons are always worth it because they save you money. However, there exists another crowd: the savvy couponers. Be discerning with coupons. It may not be practical for you to spend hours each week cutting them, but you should be on the lookout for coupons that save you a lot of money. Check out popular services like Groupon or Living Social to look for a coupon every time you’re about to spend money. It takes seconds and could save you a lot, especially on services like an oil change or a massage.

11. Review your card statements

Whether you use a credit card or a debit card, review your statements each month. It’s not uncommon for random or bogus charges to appear on your account. It’s easy to overlook these charges when you’re not checking your statement each month. If you have multiple cards, use a service like Personal Capital to link all your accounts. This way you can see all your transactions in one place for an easy review.

12. Start an emergency fund

Emergency funds are something you should set in place to avoid using a credit card in an emergency. When a crisis hits you don’t want to turn to a credit card and pile on the debt.  Debt can turn a crisis into a catastrophe. Dave Ramsey popularized the idea of having an emergency fund instead of a credit card. Dave recommends getting it to $1,000 quickly; however anything is better than nothing. Even if you can just put $50 or $100 in your emergency fund each month, you’re still making progress.

13. Use the 30-day rule

When you’re considering making a large purchase, use the 30-day rule. If you still want it just as much after 30 days, consider making the purchase. Often you’ll find that you no longer care about whatever it is you wanted. This eliminates spontaneous purchases made out of excitement or emotion.

14. Take it down a notch

Set your thermostat one degree cooler or warmer depending on the season you’re in. You will barely notice the difference and a month later you can do it again since you’ll be fully adjusted to the new temperature. According to the U.S. Department of Energy, you can save as much as 1% on your yearly heating bill for each degree.

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15. Don’t replace, repaint

If you’re planning to replace an item in your home, such as an appliance, cabinets or bathroom components; consider painting before replacing. If you’re only replacing it because of the appearance, painting may be your best bet. Anything from appliances and cabinets to sinks and bathtubs can be painted. You just have to buy the right paint. Always make this consideration before buying something new.

16. Know your options

Home Depot and Lowes aren’t the only places to buy home items, just like Best Buy isn’t the only place to buy electronics. Know your local and online options. We almost all know to look online before deciding on a purchase, but you may also be surprised at your local options. Overstock, wholesale and liquidation stores are a few of the places you should check out. Sure they’re hit or miss, but when you find some deals that save you hundreds or thousands it will all be worth it. We were able to buy ceramic tile for less than half the price we previously found, just by walking into a wholesale store that we passed by every day.

17. Keep up with maintenance

Maintaining your home and your vehicle can save you thousands down the road. Regular oil changes, replacing air filters and checking tire pressure will all lead to savings in the future. Likewise, replacing your home filters, being aware of issues and quickly making needed repairs will save you some serious cash. Be mindful and pay attention to general maintenance. Staying on top of maintenance will stop other problems before they happen.

18. Reduce your interest rate

If you have credit card debt, you know interest can be a killer. Call your credit card company and ask for a lower rate. You don’t need some amazing reason to convince them. Many companies will simply lower it because you asked. It’s easier than you may think to negotiate with credit card companies. Often times, they are just happy you’re paying instead of filing for bankruptcy.

19. Give up the expensive habits

If you’re trying to save money, your habits may be working against you. For example, the cost of cigarettes and alcohol can be insane. If you don’t want to completely cut it out, try cutting back. Smoking one less pack of cigarettes each week can save you as much as $40/month depending on the state you live in. When you count the costs of your habits, it may open your eyes to another benefit of quitting.

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20. Get paid to spend

Maximize your credit card rewards by using the right card for your purchase. Some cards offer 5% cash back on gas, while others offer 6% cash back on groceries. Credit card rewards are a great way to earn while you spend, which in return, saves you money. It’s like putting a certain percentage of every purchase into a savings account.

That was quick! Now you’ve got 20 ways to save money so start saving today. Some of these require you to take action, while others mean you’ve got to stop doing something. Whether you’re adding or subtracting something from your life, stay mindful of your spending. You should always know where your money is going, since you should be the one telling it where to go. Stick to your budget, follow these tips and save some money!

Featured photo credit: Cutting Your Spending / Tax Credits via flickr.com

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Kalen Bruce

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Published on May 7, 2019

How to Invest for Retirement (The Smart and Stress-Free Way)

How to Invest for Retirement (The Smart and Stress-Free Way)

When it comes to stocks, I bet you feel like you have no idea what you’re doing.

Everyone who’s not a financial expert has been there. I’ve been there. But, time is passing and you need to be crystal clear with how you’re investing for your retirement.

Otherwise, it’s back to work until you can afford not to. So, how can you invest for retirement when you’re not a financial expert?

You take the time to learn the fundamentals well. If you do, you can grow your wealth and retire happy. The best part is that you don’t need to be a financial expert to make smart investment decisions.

Here’s how to invest for retirement the smart and stress-free way:

1. Know Clearly Why You Invest

Odds are you already know why should invest for retirement.

But, maybe you know the wrong reasons. It’s time you get clear on why you’d like to retire. Here are some questions to help you get started:

  • Will you spend more time with your family?
  • What does retirement mean to you?
  • Are you looking to launch that business you’ve been holding off for years?

Everyone wants to retire but not for the same reasons. Once you’re clear for why retirement is important for you, you’ll focus on making it happen.

Investing in the stock market allows you to take advantage of compound interest.[1] All this means is that your money earns money on top of its interest. A reason why investment in the stock market is one of the best ways to plan for retirement.

2. Figure out When to Invest

“The best time to plant a tree was 20 years ago. The second best time is now.”– Chinese Proverb

It’s true if you’d had started investing when you were 10 years old, you’d have a lot more money than you do today.

The reality is that most people don’t start investing until it’s too late. So, if you’re currently waiting for the perfect time to start an investment, it would be today. Open your calendar and block out 2 to 3 hours to choose how you’ll invest for retirement.

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A quick way to get a snapshot of where you stand is to use Personal Capital. Input all your personal information and spend some time setting your retirement goals. Once completed, you’ll know where you stand with your retirement.

Having a savings account for retirement isn’t planning for retirement. Why? Your money loses value when you factor in US inflation.[2]

3. Evaluate Your Risk Tolerance to Create the Perfect Portfolio

Investing your money well depends on your emotions.

Why?

Because when the market drops most people panic and withdraw their money. On average, the US stock market yields an annual 6% to 7% ROI (return on your investment.) But, this won’t happen if you’re worried about short-term loses.

Before you invest your next dollar, know your risk tolerance.[3] Your risk tolerance determines the number of risky and safe investments you’d have.

Regardless of your investing style, you need to view investing for retirement as a long term game. Know that some years you’ll lose money but recoup this in the long-term.

Avoid watching market-related new. Also, create a double authentication to log in your investment account. This way you’re less likely to withdraw your money.

4. Open a Reliable Retirement Account

Depending on your circumstance, you may need to open a new brokerage account. This is the account is where you’ll invest your money.

If you’re currently working for a company, odds are that they offer a 410K investing account. If so, here’s where you’ll invest most of your money. The only problem with this is that you’re limited to the stock options that are available.

You do have the option to open a separate IRA (individual retirement account.) Here are some of the best brokers:

  1. Vanguard
  2. TD Ameritrade
  3. Charles Schwab

5. Challenge Yourself to Invest Consistently

Committing to invest for retirement is hard, but continuing to do so is harder.

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Once you’ve started investment for your retirement, you run at risk from stopping. Often you’ll want to contribute less, so you’d have more money in your pocket.

That’s why it’s important that you create a budget that allows you to invest each month. If you’re working for a company, you can set a percentage for the amount you’d like to contribute each month. Most people by default contribute 1% but aim to contribute 10% to 15%.

Be the judge for how much you can afford to contribute after covering important expenses. To stay motivated, use Personal Capital to view your net worth.

A benefit to contributing money to your retirement account is not taxed. For example, if you earn $100 and invest 10%, you’d contribute $10, then get taxed on the remaining $90. As of 2019, the most you’re able to contribute towards your 401K is 19K but this can change.

6. Consider Where to Invest Your Money

The most common way to invest your money is in stocks, but it’s not the only way. Here are other ways to invest:

Robo Advisors

Robo-advisors[4] are fancy algorithms that’ll choose the best investments for you. Sites like Wealthfront make it easy for first-time investors to invest their money. You’d input information about yourself and set your risk tolerance.

Then, set your monthly contribution amount and your robo-advisor would do the rest. Robo-advisors charge a fee to manage your money, but less than regular advisors.

Bonds

Think of bonds as “IOUs” to whomever you buy them from.

Essentially, you’re lending money and charging interest. Like stocks, not all bonds are equal. Some will be riskier than others depending on their rating.

Here are the different types of bond categories:[5]

  1. Treasury bonds
  2. Government bonds
  3. Corporate bonds
  4. Foreign bonds
  5. Mortgage-backed bonds
  6. Municipal bonds

Mutual Funds

Picture a group of people dumping all their money in a jar that’s managed by a professional. This is how mutual funds work. The fund manager manages the money looking to earn capital gains (interest.)

One of the best types of mutual funds is index funds. Since these funds don’t try to beat the market and instead follow it, they need less research. Because of this they often charge the lowest fees and yield the best long-term results.

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Real Estate

Yes, buying a home is an investment when done correctly.

Imagine buying a home and using it as a rental property. After repairing it, you receive a monthly surplus check of $100 to $200.

This may not sound like a lot, but repeat this process enough times and you’d earn a large amount of passive income. That’s why real estate is one of the best investments to not only retire but become wealthy.

But, it requires a lot of money to start and you should expect losing money along the way as you learn the process.

Savings Accounts

Your money can still grow in a savings account. Nowadays most online banks offer a 2% annual return. Although the average inflation is higher your money will be available when you need it.

7. Master Disincline to Dodge Short Success

Investing for retirement is a long-term strategy. That’s why you need to master delayed gratification. All this means is delaying short-term pleasure for something bigger in the future. Research shows that those who have delayed gratification are more successful.[6]

So how can you master delayed gratification?

By building your discipline.

Think back to what retirement means to you. A clear purpose will help you avoid withdrawing your money during a market downturn. It’ll help you contribute more towards retirement when you’d want to waste it instead.

Your journey towards retirement will be long, so reward yourself along the way. Choose a reward that’s relevant and meaningful, so that you reinforce positive behavior. For example, after contributing more towards retirement, treat yourself to dinner.

8. Aggressively Invest on This One Investment

I’ve mentioned several types of investments but haven’t covered the most important one.

It sounds cliche but here’s why you’re your best investment towards retirement. The more you know, the more money you’ll be able to make. The more good habits you adopt, the more secure your retirement will be.

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More importantly, investing in yourself is an investment that no one can take away. There’s no market downturn nor tragic circumstance that’ll wipe your knowledge and experience.

But, how can you invest yourself?

Reading books, blogs, and anything that’ll help you learn new topics daily. Listen to podcasts and audiobooks on your commute to/from work.

Save money to buy courses and hire coaches. I used to believe hiring coaches was a waste of money when I could learn the subject alone.

But, coaches see your blind spots and hold you accountable. Hiring the right coach will help you achieve your goals faster than you would’ve alone.

Retire Happy with Excess Money

The key to a secure financial future doesn’t only belong to financial experts.

It’s possible for you and I. What if you were able to retire earlier than most people and weren’t a financial planner? What if you were able to focus on what you enjoy doing the most while your money was working hard for you?

I know this sounds impossible now, but the truth is you’re capable of taking charge of your retirement. I’m not a financial expert but I’ve learned how to invest my money by reading books and learning from others.

Investing your money is scary. So start small and invest a small amount of your money with a robo-advisor. Feel your money drop and rise for a month or two. Then, invest more and keep this up until you’re aggressively saving for retirement.

One day, you’ll wake up with a net worth you’re proud of – confident about your retirement. You now know a few strategies you can use to invest in your retirement. Will you take action to retire happy?

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Featured photo credit: Matthew Bennett via unsplash.com

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