Write a List of Monthly Bills– things that you must pay for each month such as rent/mortgage
Set a Budget for Controllable Expenses– food, going out, social activities, clothing, personal care, travel, gifts, are controllable. It does matter how much you save on that avocado toast and coffee, because every bit you save is money you could be investing. Investing with a little something over time is better than investing zero.
Identify Wants vs Needs– Having a place to stay is a need. Having a new car when you already have one is a want. Having your nails done professionally is a want. Highlights or special high cost style is a want; basic grooming is a need. Going out to eat is a want; having food to eat at home is a need.
Plan to Track Your Monthly Expenses for 6 months– you need to see where your money is going. Unexpected and irregular expenses come up that throw off what you think you will spend. Additional expenses include- replacing a tire, brake repair, holiday/wedding/birthday gifts or celebrations, broken cell phone, doctor/medical treatment, home repair, household supplies, and more
Don’t use your credit cards like cash– Unless it’s an emergency or unavoidable expense like childcare, if you don’t have the money in your bank account to pay it off at the end of the month, don’t buy it.
Use credit cards to build your credit– Open multiple credit cards to show higher credit line. Put small charges on them and pay off each month
Look for Zero Interest credit card deals for large expenses/emergency bills– You can get a credit card with zero interest for 12-15 months. This gives you time to pay off the credit card without paying an interest. This can save you in emergency situations and prevent you from paying an additional fees to credit card companies (which is like throwing your money in the trash)
Control Your Vices– Coffee out isn’t a need. Alcohol isn’t a need. Porn subscriptions aren’t a need. Multiple streaming services aren’t a need. We often are searching for a dopamine hit and
Buy Off brand labels– Many products are the same or nearly the same, but have a brand label on them making the price higher. Unless it makes a big difference, generic labels can meet your needs
Use Everything You have Before Buying More– There is no need to have 3 hairsprays, 10 lotions, drawers full of products you aren’t using as you buy more. Make a plan to use up all that you have before buying more.
Wait a Few Weeks– Purchases are often made based on a fleeting feeling. You love that pillow or candle, you saw a really cute pair of shoes or bag, but if you wait to buy, you may find that you forget about what you saw and didn’t need it.
Buy on Sale, BUT not if it’s item you don’t regularly use– “Sale” label is a great marketing ploy to get you to buy things you don’t need. Use “sale” to buy things you would already be purchasing, use regularly and need.
Don’t Leave all Your Money in a Savings Account– Savings account generate almost zero interest return. In fact, while the banks use your money to make money and give almost zero in return, you are losing money over time due to inflation. The $10 sandwich now will be $20 in the future and will not go as far (i.e. inflation)
Start Investing for Your Kids When They are Young– Compound interest will make your kid a millionaire upon retirement
Put Your Retirement Savings Before Paying for College for Kids– If you have nothing saved for retirement, what will you do? Housing, healthcare, food and living expenses are higher than ever. You can’t expect your kids to foot the bill supporting you and it will cost much more than what pay save for their college. If you invest your money, it will grow over time and secure your retirement future.
Open Up a Brokerage Account with Charles Schwab– Free to open online and gives you access to invest in stocks vs. money just sitting in your bank. Don’t let fear or lack of knowledge in investing stop you.
3 Ways to Grow Your Money– Make more, spend less and invest. They all matter.
Gross vs Net Pay– Look at your paycheck, taxes, W4 form and be aware of what to expect with your gross vs. net pay. Our government rips us off (yeah I said it) and a huge amount of our money is taken out of our checks and feeding a broken system
What Skills Do Have that you could make money from– Can you speak multiple languages, do graphic design, build websites, accounting, teach cooking, sewing etc. There are sites you can market your skills and services
Be Willing to Make Sacrifices For Long Term Goals– If you don’t family footing the bill, inheritance, special connections or high income job at a young age before your responsibilities add up, you might find it hard to manage your money. You must be willing to put in the work and delay gratification. Do not worry about image or what others thing. Your job is win financially long term and it takes effort.
Resume Ready– Keep your resume up to date and ready. Keep searches on job openings active. Ask for a raise during annual reviews and provide specific goals/targets met to justify why
Networking– Have a LinkedIn profile account with your work history, bio and goals hit
Asset vs Liability– Focus on investing in assets (stocks, real estate, crypto) vs. liability (new car, jewelry, furniture) items where the value does down upon purchase. Spend wisely