In this article, I offer three simple, but effective ways you can save money and spend it wisely. I hope that some of this advice helps some people out. It has kept me afloat and secure through some rough times, so I hope it helps others do the same.
1. Pay yourself first
When you first get your paycheck, paying yourself is not running to the convenient store and getting your favorite “made to order” meal. Paying yourself first is investing in one thing, you. It is hard to resist temptation, especially when it is food, clothes, or something fun. Have control over your money, is giving yourself some stability. If you find that you are always living from paycheck to paycheck, take some time to sit down and review your bank statement.
Just because you are poor, doesn’t mean you have to be broke. I have done some pretty awesome stuff, all while living within my means, and not having a lot of money. A little piece of advice that I have received, that works, has been to take out money to save right when you get paid. This way, the money is out of sight and out of mind. That money gets saved and then you start your expenses budget based the new number in your account. After a few paychecks, this starts to add up.
Make sure that you are always paying your bills of course. We will get to that next. Even if you can only save $5 dollars, save something. Work up towards more in the future.
2. Pay your bills on time, in advance, or call
Save yourself some fees and some headache. Pay your bills, right away. Sometimes life throws us curve balls and we can’t pay our bills, we have no savings, and we feel stuck. Just reorganize yourself a bit, make a plan, get motivated.
There are always variable expenses that you can “cut back on” for a few weeks. Spend less on groceries, toiletries, and other items. You do not have to be a coupon clipping fanatic to do this. Just be aware of the prices you’re paying for things. You can usually find things cheaper than you would expect, you just have to do some organizing. This means go to dollar the discount stores for some things. Be a smart shopper, and you will work your way towards paying your bills.
If you are independent and have to work for a living to live, you will have bills for the rest of your life. Even if you win the lottery tomorrow, you will still have bills. Sorry to say, it is just part of life. Get organized and don’t hide from them. The more you hide from your bills, the worst that they get. Cutting back on variable expenses is just one way that you can cut back to make those bill payments, there are many others. Bills are important and not paying them will only hurt you more in the long run.
3. Have credit knowledge
Since I am not an expert in this department, I can’t offer you too much advice, other than what I know works. Credit is a tricky subject, and honestly a lot of people do not understand it. You need to learn about credit. You do not have to live your life around it, but you should have a firm understanding of how to position yourself to not have unnecessary fees and interest rates.
Opening a line of credit is important for many reasons. In today’s world, you need credit. If you do not have credit in your name, start slowly. Monitoring your credit has become very easy and accessible with recent apps and websites. Take advantage of the resources that are out there, but also be aware of articles that you read and who is sponsoring those articles. Credit companies want you to spend money on your credit card. They will entice you with vacations, bonus mileage points, and gift cards to try and get you to open a line of credit with them.
If you have never opened a credit card before, tread carefully. I try to handle my credit to the best of my ability. The first step is to learn about how it works, and then open a line. Do not use your card for things that you can’t pay for. “I will pay it off eventually” never really happens, and you end up with some tough interest charges to pay back.
Keep yourself on a budget, but use your credit card to your advantage. If you purchase things on it, that comes out of your budget. Pay it off, otherwise you will pay more later.
