I thought it would be good to share information that has worked for me because improving your finances generally enhances your happiness.
Despite leaving my career and my wife recently leaving hers, I’m in the best financial health of my life. Most of it is due to you guys, the readers, but it’s also due to my ability to be economical, pay off my debt, and save as much money as I can. To these scumbags.
Here’s what I’ve found to be effective; please don’t flame me because I’m not guaranteeing they’ll be effective for you. Comment with your advice and tricks!
1. Use Cash. Use cash for non-bill expenses like eating out, gas, and groceries rather than credit or debit cards. Spending actual money makes it seem more real, and there’s an added benefit of knowing when you’re out of money so you don’t spend more than you can afford.
2. Little Deposits Into Savings Each Week. My friend Trent of The Simple Dollar, who automatically deducts $20 every week from his paycheck for savings, gave me the idea. I came to the conclusion that I could live with $40/week because it is a relatively tiny transfer that I hardly notice and because it adds to my larger biweekly savings transfers by allowing me to save roughly $2,000 annually.
3. Be at Home. Going out increases your likelihood of making unnecessary purchases. You dine out, visit the mall, and pick up munchies at the gas station. When you’re traveling, it’s difficult to limit your expenditures. Instead, find free entertainment at home. It’s a wonderful method to strengthen family ties as well.
4. Purchase No Catalogs. or emails from businesses attempting to sell you things. It is highly tempting to purchase something you don’t need when they make announcements about sales or amazing new products. You’ll spend less money if you prevent catalogs and emails from ever reaching you in the first place.
5. Keep a 30-day calendar. Put it on a 30-day list if you feel the want to acquire something you don’t actually need. Everything else goes on the list with the date it was added, and you are only allowed to purchase basics. When the 30 days are up, you can buy it, but it’s probable that the intense temptation to do so will have passed and you’ll be able to consider your options more rationally.
6. Cooking at Home. I realize that it seems more challenging than eating out. However, it need not be challenging. Stir-fried frozen vegetables, boneless chicken, or (my favorite) tofu with soy sauce or tamari in a hurry. Pizza can be produced at home using premade dough, sauce, cheese, and toppings. While you make some brown rice, season something and place it in the oven. This is not only significantly less expensive than eating out, but it is also healthier.
7. Exercise. The easiest approach to minimize future expensive medical expenditures is to maintain good health now.
8. Utilize the Envelope Method. The concept is the same as using cash for purchases, but you also divide your cash into different categories by utilizing envelopes. My categories for non-bill expenditures include groceries, gas, and other expenses. I have three envelopes, and when they are empty, my allocation is gone.
9. Talk to Your so Once Every Week. You and your significant other need to be on the same page. You should both have the same financial objectives before deciding on a spending plan in general and a policy for impulsive purchases that won’t make either of you want to strangle the other. Make sure you both are aware of the bills that have been paid, your current amounts, etc. That can be done in a 20-minute weekly meeting. The key is communication.
10. The Hack of The Spreadsheet Tracker. There are pricey applications like Quicken, MS Money, and others that can perform wonderful things with your financial data. On your desktop or internet, there are also free ones that can perform a variety of tasks.
The problem is that I don’t need all of it. I just need a simple way to keep track of my money, no frills, and I need access to it online so I can see it from anywhere. Google Docs and Spreadsheets are the most effective tool I’ve found for doing that.
To track my bank accounts, I made a straightforward spreadsheet that performs what MS Money used to do. Each transaction’s date, title, and amount are listed, along with a small field for memoranda and a running balance. What more do I require? Ensure simplicity. View a sample I posted online here (update).
11. Pay Off Debt and Savings First. Make your savings transfer and debt payments the first things you pay when you sit down to pay your bills (I always do mine online). If not, you’ll frequently underpay them if you pay them last. But if you take care of them first, you’ll still be able to pay your rent or mortgage, electricity, groceries, and petrol, so you won’t have to make as many additional cuts.
12. Work out At Home. It’s okay if some of you disagree with me on this; everyone should do what seems right to them. But by simply running at the nearby track or on the streets in my area, as well as by investing in some cheap weights and a chin-up bar, I’ve been able to significantly reduce the amount of money I used to spend on gym memberships. I work out with my own body weight a lot (pushups, lunges, pullups, dips, etc.), thus I don’t need a gym for those activities.
13. Eliminate Cable Tv. I’m not saying I don’t watch TV, but I prefer to watch DVDs since they guarantee that what I’m viewing is worthwhile rather than the majority of the time-wasting programming you find on TV. And if you check online, you can find a lot of stuff for free. It doesn’t seem like a lot, but it adds up.
14. Declutter. By purging your home of all the extra items, you not only make life much easier and more tranquil, but you also make it more difficult to purchase anything that will simply serve to further clutter things up. You won’t want to return to a more complicated home once you’ve reduced it.
15. Give and Take. Give your friends and family the books, clothes, and toys you no longer need. Send an email asking if anyone has something you need. If they don’t need it anymore, they probably won’t charge you for it.
16. Barter. Although it’s a lost art, many people will accept your goods or services in lieu of cash, especially if you’re friends or at least familiar with one another. Make it a practice to offer to barter, and you’ll soon find that you’re able to save a lot of money. For instance, I saved over $1,000 on my website design thanks to the barter system.
17. Save Money Online. I use Emigrant Direct, although ING Direct and a number of other online banks are also well-liked. In addition to earning around twice as much interest as a typical bank savings account, having an ATM account makes it easier to withdraw cash when you need it, reducing the likelihood that you’ll do so on a whim.
18. Try Giving Cheap Gifts. One of the most delightful customs is giving gifts to others since it demonstrates kindness and concern. till it starts to be sold. The price is then merely extremely high. Try giving someone the gift of your time instead. Give them something you baked or created yourself, if possible. Try providing them with services they would value. Being kind doesn’t have to be expensive.
19. Teach your children about gift-giving, advertising, saving money, and earning money. If you have children, teaching them about money will ultimately save you a lot of money. Youngsters won’t demand (OK, beg and plead for) the newest craze toys if they are aware of the sneaky ways that advertising affects them.
They will respect the money you earn and are making an effort to save if they are aware of how to earn and save money. They won’t necessarily want expensive items if they realize that buying gifts doesn’t have to be pricey (see above).
20. Spend Less Money and Seek Happiness in Life. People frequently make purchases because they believe (maybe subconsciously) that they will be happier as a result. They simply MUST possess the newest technology, footwear, or vehicles. So much fun! However, even after purchasing such goods, your happiness lasts no more than a day or two. Then all you have to do is buy more.
The cycle never ends. Learn to appreciate life instead. Enjoy the outdoors! In those close to you! in engaging in a passion project! in physical activity and meditation! There is no need to seek happiness through spending when there is so much in life to make us happy.