If you’ve never thought much about money or your finances before, it can be hard to know where to start. To help you gain control over your own financial future we have put together these eleven tips. Try out one at a time and see how you do. Then keep going with the ones that worked for you!
1. Run Your Household Like a Business
Look for ways to maximize your income, that’s what a business is constantly doing. You can do this either by finding ways to earn more income, spend less, or a combination of the two. With the goal being to have enough to be able to save money, aka pay yourself. Treating your household like a business will ensure a brighter financial future for you and your family.
2. Set it and Forget it
Put your savings on auto-pilot. You can automate just about everything, from saving money to paying bills; and you should. You can set up a portion of your direct deposit to go into your savings account. You can set up your regularly occurring bills to be on auto-pay too using the bill pay feature in most online banking systems. This takes a lot of weight off your shoulders because you don’t have to think about saving or paying bills. Bonus, it frees up your time.
If you like these tips, check out this video featuring First Alliance Credit Union staff sharing some of their favorite money management ideas on KIMT!
3. Get Healthier
This one is really easy, just drink more water. Bottled water is cheaper than soda, tap water is even cheaper. Take the money you were spending on expensive coffee, beer, or soda and put that money into your saving. Plus, double bonus, it’s good for your waistline to cut back on those beverages! Soon your bank account will be full and your belly thinner. Win, win!
4. Just Make a Budget
There are plenty of free budgeting online services, like Mint.com, that allow you to link your accounts and automatically track your budget. But there are a wide variety of budgeting methods you can try out until you find one that works best for you. Everything from cash only budgets to tracking via a spreadsheet.
5. Make Money on the Side
If you’re considering a side hustle to reach your financial goals, get one where you can earn tips, like waiting tables. You could easily earn $100+ per shift this way. Then use your extra earns to reach your financial goals, whether that is to build up your savings or pay off your debt faster. Once you reach your goal, you can quit. Sometimes a little extra cash is all you need to jump start your finances.
6. Challenge Your Spending
Look over your spending from the last three to six months and challenge every single expense you have. Do you really need cable and Netflix? What about that monthly gym membership that you don’t use? Even if it’s just cutting back on going out to eat from three times a week to twice a week. Odds are you can cut something out and save some money or even just avoid overspending.
7. Be Smart About Using Coupons
You don’t need to spend hours cutting coupons to save money, instead check out services like Groupon.com. Every time you’re about to spend money do a quick search to see if there is a coupon or discount available. You can quickly find deals you will actually use and not waste time clipping coupons. Plus, you won’t be tempted to buy something you don’t need just because you have a coupon for it.
8. Pay Attention
It’s a best practice to review your accounts monthly. It’s not uncommon for random charges or fees to appear on your account. It’s easy to overlook these charges if you’re not paying close attention. If you do find a discrepancy contact your financial institution right away to find out what is going on. Even if it’s a valid charge you can at least find out how to avoid the fee in the future.
9. Take Time to Think
When you’re thinking of making a large purchase, use the 30-day rule. If you still want it just as much after 30 days, then make the purchase if you can truly afford it. This eliminates impulse buys and also gives you time to do some research. You may find a better deal somewhere else, or realize it's not really something you needed or wanted.
10. One Degree Makes a Difference
Set your thermostat one degree cooler or warmer depending on the season. According to the U.S. Dept. of Energy, you can save as much as 1% on your yearly heating bill for each degree. You likely won’t notice the change in temperature at only one degree difference.
11. Again, Pay Attention
Start tracking your spending one week at a time, just to see where your money is going. Once you have a grasp on where your money is being spent, it is easier to decide where you can cut back and make some changes. You may find out your doing better than expected too!
Get on the Path to Financial Success With First Alliance
Any one of these tips can help you get a better handle on your finances. If you can follow all of them, you'll be well on your way to financial success. You can get a clearer idea of where you stand financially, after scheduling a free consultation with one of our member advisors to help you figure out your next good money move.
