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Learn These 10 Easy Skills Now And You Can Save A Lot of Money

Learn These 10 Easy Skills Now And You Can Save A Lot of Money

There are certain things that we have to pay other individuals to perform for us. From the dentist to certain construction tasks, it would be less stressful and wiser to consult an expert. However, for certain tasks, like an article of clothing that is damaged or dog grooming that we can perform ourselves and save a ton of money in the process. This not only makes you a wiser individual economically, it allows you to also be more self-sufficient in a time of rising costs and the environmental impact certain acts have. Today, we will talk about 10 easy to learn skills that you need to acquire today to save you money in the future.

1. Website Design

This is by far my most favourite tip to give. Not only because I’m currently working on advancing my programming knowledge, but also because it has both money saving and money making qualities. Squarespace is a website design website I make use of and a separate website for my domain costs. Even with a working knowledge of HTML and CSS, I use Squarespace because I simply love their templates I can tinker with. With Squarespace alone I am paying $120 a year, that’s $10 a month. For those who can program their own website, they are able to make it uniquely their own and can even offer their skills to other people as a way of making money. Code Academy is a great place to start and you’ll need to work toward learning HTML/CSS and Javascript.

2. Cooking

preparing food

    Some reports attest that the average American eats out twice a week, spending on average $10 each visit. Totalling close to $1000 a year when you add in taxes, and almost an additional 50% of that when you factor in taxes. In summary, that is what equates to a round-trip international plane ticket, going down your gullet. While I am not recommending you to stop eating out all together, I still spend the average a year on eating out, if not more, I do recommend you take up the skill of cooking if you are looking to save money. With the numerous recipe applications, articles, and websites out there, cooking is more accessible and easier than you think. With the money you’ll be saving, cooking your own meals every now and then will grow on you.

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    3. Dog Grooming

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      There are certain upkeep costs that require the intervention of a vet when it comes to pets. However, there are many individuals who pay for dog grooming to ensure that nails are kept trimmed or even polished! With some services costing between $20 and $50 a visit, you are simply throwing money into the litter pan with dog grooming costs. Instead, learn to do some of these things yourself. From giving your dog a luxurious bath to keeping up their mane, you will be saving between $300 and $600 a year. Plus, it’ll allow you to connect with Fido.

      4. Clothing Repair

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        Oh no, there’s a rip in your pants. What are you likely to do? Chances are high that you’ll either throw the pants out or do the “frugal” option of taking them to the tailor. But when you think about it, is having someone else repair your pants really frugal when you have two working hands of your own. No it is not, and there are various resources online and show you how to make small repairs to clothing mishaps, preventing you from having to make a trip to your tailor or the local shopping mall. With the average tailor visit costing between $10 and $30, you’ll save $120 to $360 a year repairing on our own.

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        5. Cutting Hair

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          Salon costs are heavily weighed especially on gender. Granted, a woman may request a couple of more additions to their hair bill, including some styling here and there, but for the most part, women pay more in any situation. Depending on the size and location of the city you live in, especially as reported in this Huffington Post article from May of last year, you can find yourself spending between $900 and $3000 on average for maintaining that gorgeous mane of yours. That’s outrageous, and you may want to look into how to give or allow a family member to give you a small trim between less frequent visits. The other hair cost, hair products, can also be reduced as well. Guys, I’m looking out for you all as well (how to trim your own beard and how to cut your own hair).

          6. Walking

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            Taking your car everywhere, even when you have no where to go and just want to go for a ride on a nice Saturday afternoon can cost you in the long run in wasted gas. Instead, look into walking to more places if you live in a neighbourhood that would make this possible. Even if you don’t, if you are on break at work, walk around the city instead of driving to your lunchtime errands. If you do live in a walkable neighbourhood, consider forgoing your car all together. Learning how to tackle your city like a true city person will allow you to let go one of the biggest expenses of all. Forgoing your car results in saving almost $3000 a year.

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            7. Preparing Taxes

            Preparing your own taxes can be so stressful that individuals are willing to shell out on average $261 a year to have someone else do it. While in complicating situations, for example the case of freelancers, it is wise to consult a bit of help. However, if you are a run of the mill taxed American, you will probably find that preparing your own taxes is wiser for you in the end.

            8. Negotiating

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              There are certain countries where a majority of your purchases are set in stone, in other countries negotiating is the way to go. However, in the United States, many of the services that we feel are set in stone can actually be negotiated upon. Chances are, in our society, you’ll find things marked with a price tag, but you can definitely find ways to negotiate in the form of discounts. You aren’t haggling or being a penny pincher by asking if places have discounts for students or other groups you are qualified under. If you have enough proof, your chances of getting some unadvertised percentage off can save you a ton in the long run. All you have to do is learn the art of speaking up.

              9. Car Maintenance

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                As mentioned before, walking can be a great way to save almost $3000 if you forgo your car all together. However, if you are like most Americans and can’t let the keys go, there are ways to save on things like car maintenance. Certain things, like changing a tire or keeping up with your car’s oil are simple and quick tasks you can perform yourself with the right tools and know-how. Maintaining your car yourself, without the need to go to a dealership aside from larger issues and inspections will save you hundreds in the end of the year.

                10. Stay-cationing

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                  Paying hundreds of dollars for transportation, hundreds more for lodging, and eating out are all the components of an expensive but great vacation. However, very few people fail to look at what is to offer in their own backyards (~50 mi). Living in Northern Virginia alone, if I want city fun I can go to Washington D.C, if I want nature, i can go to the numerous national parks, including Great Falls, to take in the scenery. Make use of websites like Yelp or your city or state’s official website. They can offer insight into various activities available to you to enjoy.

                  Grand Total of Savings: ~$3500 – $6000 a year.

                  With the tips outlined in this article, you can find yourself saving a ton of money that can be applied toward a certain item or trip you have been only wishing to partake in for the longest. Let us know in the comments below what you’d spend your personal grand total of savings on.

                  Featured photo credit: 120 Hours via 120hours.com

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                  Last Updated on September 2, 2020

                  How to Set Financial Goals and Actually Meet Them

                  How to Set Financial Goals and Actually Meet Them

                  Personal finances can push anyone to the point of extreme anxiety and worry. Easier said than done, planning finances is not an egg meant for everyone’s basket. That’s why most of us are often living pay check to pay check. But did anyone tell you that it is actually not a tough task to meet your financial goals?

                  In this article, we will explore ways to set financial goals and actually meet them with ease.

                  4 Steps to Setting Financial Goals

                  Though setting financial goals might seem to be a daunting task, if one has the will and clarity of thought, it is rather easy. Try using these steps to get you started.

                  1. Be Clear About the Objectives

                  Any goal without a clear objective is nothing more than a pipe dream, and this couldn’t be more true for financial matters.

                  It is often said that savings is nothing but deferred consumption. Therefore, if you are saving today, then you should be crystal clear about what it’s for. It could be anything, including your child’s education, retirement, marriage, that dream vacation, fancy car, etc.

                  Once the objective is clear, put a monetary value to that objective and the time frame. The important point at this step of goal setting is to list all the objectives that you foresee in the future and put a value to each.

                  2. Keep Goals Realistic

                  It’s good to be an optimistic person but being a Pollyanna is not desirable. Similarly, while it might be a good thing to keep your financial goals a bit aggressive, going beyond what you can realistically achieve will definitely hurt your chances of making meaningful progress.

                  It’s important that you keep your goals realistic, as it will help you stay the course and keep you motivated throughout the journey.

                  3. Account for Inflation

                  Ronald Reagan once said: “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman.” This quote sums up what inflation could do your financial goals.

                  Therefore, account for inflation[1] whenever you are putting a monetary value to a financial objective that is far into the future.

                  For example, if one of your financial goal is your son’s college education, which is 15 years from now, then inflation would increase the monetary burden by more than 50% if inflation is a mere 3%. Always account for this to avoid falling short of your goals.

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                  4. Short Term Vs Long Term

                  Just like every calorie is not the same, the approach to achieving every financial goal will not be the same. It’s important to bifurcate goals into short-term and long-term.

                  As a rule of thumb, any financial goal that is due in next 3 years should be termed as a short-term goal. Any longer duration goals are to be classified as long-term goals. This bifurcation of goals into short-term vs long-term will help in choosing the right investment instrument to achieve them.

                  By now, you should be ready with your list of financial goals. Now, it’s time to go all out and achieve them.

                  How to Achieve Your Financial Goals

                  Whenever we talk about chasing any financial goal, it is usually a two-step process:

                  • Ensuring healthy savings
                  • Making smart investments

                  You will need to save enough and invest those savings wisely so that they grow over a period of time to help you achieve goals.

                  Ensuring Healthy Savings

                  Self-realization is the best form of realization, and unless you decide what your current financial position is, you aren’t heading anywhere.

                  This is the focal point from where you start your journey of achieving financial goals.

                  1. Track Expenses

                  The first and the foremost thing to be done is to track your spending. Use any of the expense tracking mobile apps to record your expenses. Once you start doing it diligently, you will be surprised by how small expenses add up to a sizable amount.

                  Also categorize those expenses into different buckets so that you know which bucket is eating most of your pay check. This record keeping will pave the way for cutting down on un-wanted expenses and pumping up your savings rate.

                  If you’re not sure where to start when tracking expenses, this article may be able to help.

                  2. Pay Yourself First

                  Generally, savings come after all the expenses have been taken care of. This is a classic mistake when setting financial goals. We pay ourselves last!

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                  Ideally, this should be planned upside down. We should be paying ourselves first and then to the world, i.e. we should be taking out the planned saving amount first and manage all the expenses from the rest.

                  The best way to actually implement this is to put the savings on automatic mode, i.e. money flowing automatically into different financial instruments (mutual funds, retirement accounts, etc) every month.

                  Taking the automatic route will help release some control and compel us to manage what’s left, increasing the savings rate.

                  3. Make a Plan and Vow to Stick With It

                  Learning to create a budget is the best way to get around the uncertainty that financial plans always pose. Decide in advance how spending has to be organized

                  Nowadays, several money management apps can help you do this automatically.

                  At first, you may not be able to stick to your plans completely, but don’t let that become a reason why you stop budgeting entirely.

                  Make use of technology solutions you like. Explore options and alternatives that let you make use of the available wallet options, and choose the one that suits you the most. In time, you will get accustomed to making use of these solutions.

                  You will find that they make it simpler for you to follow your plan, which would have been difficult otherwise.

                  4. Make Savings a Habit and Not a Goal

                  In the book Nudge, authors Richard Thaler and Cass Sunstein advocate that, in order to achieve any goal, it should be broken down into habits since habits are more intuitive for people to adapt to.

                  Make savings a habit rather than a goal. While it might seem to be counterintuitive to many, there are some deft ways of doing it. For example:

                  • Always eat out (if at all) during weekdays rather than weekends. Weekends are more expensive.
                  • If you are a travel buff, try to travel during off-season. You’ll spend significantly less.
                  • If you go shopping, always look out for coupons and see where can you get the best deal.

                  The key point is to imbibe the action that results in savings rather than on the savings itself, which is the outcome. Focusing on the outcome will bring out the feeling of sacrifice, which will be harder to sustain over a period of time.

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                  5. Talk About It

                  Sticking to the saving schedule (to achieve financial goals) is not an easy journey. There will be many distractions from those who are not aligned with your mission.

                  Therefore, in order to stay the course, surround yourself with people who are also on the same bandwagon. Daily discussions with them will keep you motivated to move forward.

                  6. Maintain a Journal

                  For some people, writing helps a great deal in making sure that they achieve what they plan.

                  If you are one of them, maintain a proper journal, where you write down your goals and also jot down the extent to which you managed to meet them. This will help you in reviewing how far you have come and which goals you have met.

                  When you have a written commitment on paper, you are going to feel more energized to follow the plan and stick to it. Moreover, it is going to be a lot easier for you to track your progress.

                  Making Smart Investments

                  Savings by themselves don’t take anyone too far. However, savings, when invested wisely, can do wonders.

                  1. Consult a Financial Advisor

                  Investment doesn’t come naturally to most of us, so it’s wise to consult a financial advisor.

                  Talk to him/her about your financial goals and savings, and then seek advice for the best investment instruments to achieve your goals.

                  2. Choose Your Investment Instrument Wisely

                  Though your financial advisor will suggest the best investment instruments, it doesn’t hurt to know a bit about the common ones, like a savings account, Roth IRA, and others.

                  Just like “no one is born a criminal,” no investment instrument is bad or good. It is the application of that instrument that makes all the difference[2].

                  As a general rule, for all your short-term financial goals, choose an investment instrument that has debt nature, for example fixed deposits, debt mutual funds, etc. The reason for going for debt instruments is that chances of capital loss is less compared to equity instruments.

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                  3. Compounding Is the Eighth Wonder

                  Einstein once remarked about compounding:

                  “Compound interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t… Pays it.”

                  Use compound interest when setting financial goals

                    Make friends with this wonder kid. The sooner you become friends with it, the quicker you will reach closer to your financial goals.

                    Start saving early so that time is on your side to help you bear the fruits of compounding.

                    4. Measure, Measure, Measure

                    All of us do good when it comes to earning more per month but fail miserably when it comes to measuring the investments and taking stock of how our investments are doing.

                    If we don’t measure progress at the right times, we are shooting in the dark. We won’t know if our saving rate is appropriate or not, whether the financial advisor is doing a decent job, or whether we are moving closer to our target.

                    Measure everything. If you can’t measure it all yourself, ask your financial advisor to do it for you. But do it!

                    The Bottom Line

                    Managing your extra money to achieve your short and long-term financial goals

                    and live a debt-free life is doable for anyone who is willing to put in the time and effort. Use the tips above to get you started on your path to setting financial goals.

                    More Tips on Financial Goals

                    Featured photo credit: Micheile Henderson via unsplash.com

                    Reference

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