13 Simple Ways to Transform Your Finances

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Do you feel saving money is easier said than done? Don’t lose faith. You can improve your relationship with money now rather than waiting for the “right time” when you’ll have a better-paying job, fewer bills, or the kids have moved out. So what can you do? Here are 13 practical tips. 

Save 20%

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This tip might initially feel like a challenge, but it’s very rewarding. Make an effort to save 20% of your paycheck as soon as you get paid and into “an account with a high-interest rate.

One commentator shares, “Most people spend their money based on how much they have to spend. When you find your current account is low, you tend to spend less. So, if you pay yourself first, you’ll find that savings account adding up quickly.”

Stop Going Out to Eat

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If most of your paycheck goes into food, stop buying pre-packaged meals or going out and start making meals at home. One user revealed, “We saved almost $500 a month by buying groceries and eating every meal at home.” 

Stop Drinking and Smoking

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Drinking and smoking are not necessities but luxuries you can live without. “You not only save upfront but also on healthcare costs down the road,” writes a user. 

Pay Bills on Time

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“Late fees are murder,” points out a user. Habitually pay your bills on time to save money and get a good credit score. “Set up online payments” or “automatic monthly or bimonthly deposits into a savings or retirement plan so you don’t have to think about it.”

Use Cash as Much as Possible

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Something about parting with dollar bills stings compared to pulling out your credit or debit card: “Imagine paying for dinner with a $100 gift card vs. paying with a $100 bill. It’s harder to imagine parting with the cash, right?” points a user. 

Pack a Lunch to Work

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Also, instead of grabbing a bite at the local restaurant, make it a habit to pack lunch and a “refillable bottle of water.” 

Make a Budget and Stick With It

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A user who recommends this says, “Don’t fudge on the budget. Any extra money left over in your budget immediately goes into a savings account. If you’re touching your savings account more than once or twice a year, you’re either experiencing an emergency or doing it wrong.

Don’t Buy Things You Can’t Afford to Impress People

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Additionally, don’t sink into debt getting the latest, trendy, expensive clothes, shoes, or car because you want to impress people. Instead, “buy practical stuff and take care of it.”

Don’t Put Money on Your Credit Card That You Can’t Immediately Pay Off

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Next, avoid maxing it out regardless of your credit card limit and only use what’s within your checking account. A 27-year-old says, “I got in huge debt from credit cards in college. I now only carry a debit card, so I do not spend outside my means.”

Go to Community College for Your First 2 Years

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Doing this can save “thousands of dollars in student loans” without compromising education quality. 

Don’t Pay for Cable TV

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Rather than pay for cable TV, pay for faster internet as it cuts the bill in half and offers more entertainment options.

Don’t Buy Groceries Hungry

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Also, get your groceries when full to avoid impulse purchases of ingredients you don’t need.  

Stop Buying $5 Coffee

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If you must have your regular cup of coffee, consider getting a coffee maker and save that $5. It might not seem much, but you’ll save over $1500 yearly.  

Source: Reddit
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