Whether you came from a background where you were taught money matters or not, there are a number of things you can do to set yourself up for financial success or to overcome being a paycheck-to-paycheck survivor. Here are some of the habits I’ve shared with others over the years – sometimes I have to remind myself of a few of these!
Pay yourself first – and automate it!
Do as suggested by Warren Buffett – rather than save what’s left over after spending, spend what is left over after saving.
Plan your expenses based on what is left instead of the savings as so many do. Retirement contributions – if offered through your employer – is the first step. I differ from a certain financial “professional” in nixing contributions while paying off debt, especially if you get a match. Also – you will thank yourself later on for the extra time in the market. You can always work a side hustle or sell things to pay off debt, but you cannot make up the compound interest earned from paying yourself first.
Also – on this same note, if you are paid through direct deposit, have HR/Payroll set it up so a set amount automatically transfers straight to your savings instead of checking. If you aren’t seeing it, you’ll ‘forget’ about it and not be tempted to spend before you can transfer it yourself.
Shop smart
Shop from a list and don’t shop when hungry or exhausted. I price shop several different stores within a few miles of our house/office for the best pricing – usually by checking sale ads weekly. Take advantage of shopping apps that allow you to see the prices for a location if what you need isn’t in the sale ad – I do this as I make my list each week via the Walmart app as well as through Instacart when working on my Aldi grocery list. Use coupons when you can – but only for items you’ll actually use. Use cashback apps where you just have to scan a receipt to get free money (Fetch is my favorite – not using it? Here’s my referral code (F8CYM) that’ll get you 500 points closer to redeeming for a gift card).
#youhavefoodathome
Seriously – the fastest way to cut spending and have ‘more money than month’ instead of the reverse is to quit going through the drive-thru or out to eat so often. We’re guilty of this. How have we overcome this? We meal plan a month or two out, adding things that we would go out to eat for and finding healthy recipes that are easy to make. Not a great cook? Figure out what you can make affordably that you enjoy and splurge occasionally on a frozen ready-to-heat option.
Experiences don’t need or have to cost anything
I recently read that the library is the last great place we can go into without the expectation of spending money. Libraries have physical books, audiobooks, DVDs, magazines, newspapers and so much more. Our local library offers so many free classes and activities (well, pre-pandemic) for all age groups.
The same goes for parks – our local ones have running and hiking/mountain biking trails, splash pads, basketball courts, baseball and soccer fields, skateboarding areas, a fishing pond, and playgrounds, of course. One of ours also has an amphitheater that puts on free productions as well as monthly movie nights during the summer.
Fix or repair instead of automatically replacing
I don’t recommend this for everything – sometimes, hiring a reputable licensed professional to repair certain things is best – but when possible, try to fix or repair what you can. This ranges from clothing to basic home and auto repairs, and more. Google and YouTube may become your wallet’s best friend.
Use it all up!
Squeeze out the last of the toothpaste – cut it open if need be, turn that shampoo or detergent bottle upside down!
Live below your means
Keep your housing expenses as low as safely possible – house hacking (i.e. taking on roommates, turning a mother-in-law suite into a short-term rental if local regs allow) is a great way to bring down housing costs without giving up living in a safe and convenient neighborhood. While it is not what we are doing – we chose to buy a house that was less than half of the amount we qualified for with our lender. While it is not always possible to save up to cash flow a vehicle when you need to get or replace one, buy a certified pre-owned car instead of a brand new car – and pay extra every month to pay it off early. Curb splurge spending and focus on building savings for future goals instead of giving in to buying the newest it item that will find itself in the back of a closet or a donate pile within no time at all.
