Disclaimer: I am NOT a financial expert or advisor, however these are tips I feel are useful, so use as you feel appropriate! This post also contains referral links, in which I will receive a commission for if you sign up using my link. However, this is of no additional cost to you.
You want it, so why not go after it?? Follow these tips to get on the right track financially and start saving up for your goals NOW rather than later.
1. Put Back Money From Every Paycheck (and DO. NOT. TOUCH!!)
Have a set amount or percentage of your paycheck put up into your savings account. This can usually be done automatically if you choose to do so. Either way, make sure you stick to it and do not touch the money unless it’s for what you’re saving it for!
2. Have Envelopes for Certain Things, Such as Bills, Out to Eat, Savings, Etc.
If you have envelopes set aside and earmarked for certain things, it is easier to keep this money set aside for this and not delve into it. Seeing your money pile up for things you have planned for yourself is not only exciting, but motivates you to want to save more!
3. Have Clear Goals in Mind-Invest in Yourself!!
Know what you want, when you want it, and how you want it. Don’t be afraid to invest in yourself! It helps to write it down to hold yourself accountable.
4. Pay Bills on Time to Avoid Any Late Fees
One way to do this if you tend to forget is to set up autopay, so you don’t even have to remember when exactly your payment is due by. Additionally, if your payment is reported to a credit bureau, it can help your credit score as well if you pay them on time, so it’s a win win situation.
5. Use the “Avalanche” or “Snowball” Method of Paying Off Debts
These two methods are HIGHLY recommended in order to pay off debt as quickly and efficiently as possible-here’s what they are:
“Avalanche” Method means to focus on the debt payment with the highest interest rate first (putting as much as you can towards that) while putting the minimum payment possible towards the other debts you have. This method saves more money in the long run.
“Snowball” Method means to focus on the debt payment with the lowest payment (putting as much as you can towards that) while putting the minimum payment possible towards the other debts you have. This method is best for those who need to see wins more quickly in their debt tackling process.
6. Once Again, Declutter and Get Rid of Anything Not Needed!
This is a great way to get some extra cash in your hands. Go through clothes, furniture, storage rooms, etc. and list unwanted goods on apps such as Mercari or Poshmark, or take to thrift stores.
7. If You Have to Go Into Debt For Something, Rethink It. (Read That Again)
Now, this DOES NOT go for things such as a college education, or a house. Because I don’t know about you, but I cannot afford these things with cash straight out and can’t see myself being able to in the near future. (however, I would love to be proved wrong!)
These are usually called “good debts”, because they provide you with something that has the potential to increase your net worth, ex. an education provides the knowledge for life in general and for a future career, and a house provides memories and simply living in that house until you pay it off while taking good care of it, and then selling it for a profit.
“Bad debt”, on the other hand, depreciates and if you take a loan out on these things when you don’t need to (or don’t even need it period), you might be spending way more on it than it’s even worth. A good example is a car, which depreciates right when you drive it off the lot. Another example is credit cards. The interest rates used on these are extreme, and should be avoided when possible. AKA don’t go into debt for something you really don’t need, or for something you can pay for straight out! That’s why saving money is important, so you can avoid these bad debts!
8. Use Cash Back Apps Like Rakuten and Ibotta
I am fairly new to these apps, but I love them already! Use them to scan barcodes and for your online shopping you already do, and EARN CASH BACK. How does that sound??
Use my referral link here to sign up for Ibotta and get amazing cash back deals (plus $5 for redeeming your first offer within 14 days of registering!!)
I hope you found some of these tips useful, and let me know down below what you think! Follow my socials for more important content 🙂