My Top Financial Tips for 2018
Maybe you are feeling a little short after the holidays or are simply looking to start saving towards your early retirement. Whatever the case these tips are here to get your 2018 started off the right way. Maybe not all of these tips will find your fancy but if you combine just a few of them you'll be surprised how quick and easy it really is to save on your own!
Tip #1 The 70-30 Strategy
To start things off we will need a simple budgeting strategy. Personally I find the 70-30 strategy to be both simple and effective. Dedicate 70% of your weekly or monthly income to bills only (ie. utilities, groceries, gas etc). Then ten percent will be put into an MMA, ETF or a similar vessel of your choice. The next ten percent should be stored in a personal savings account for emergencies. Lastly you will have 10% to spend on whatever you want. It's your money, spoil yourself a little! Any money not spent on bills is best put into either your emergency savings account, investment vessels or a combination of the two depending on your needs. If you can manage to stick to this budget consistently your savings will be growing in no time.
Tip #2 Trimming the "Fat"
Expenses that are avoidable or unnecessary are your enemy. Chewing gum, coffee shops and subscription services have a way of slowly chipping away at what companies like to call your "disposable income". I'm not sure about you but i don't consider any of my income disposable. Maybe consider moving down to the basic Hulu+ (a savings of almost $50 a year, enough to pay another month of cell service) or getting yourself a nice to go cup and save yourself hundreds of dollars a year.
Tip #3 Start Investing
I don't care if you are 18 or 73. Get those reading glasses on and let's start looking into the future! The truth is that there are amazing opportunities everyday to improve your financial well being but too many people are afraid to get started. It can be a daunting task but with some dedication you can be successful with as little as a few hours of research a week! Don't let the media scare you away. Now is the time to take control of your financial future. Get into options, buy some stock or just start getting your retirement portfolio where it belongs.
Tip #4 Read,Read,Read,Read......
You should never stop learning. You may not be a student; or maybe you are, but in either case you are a student of life. Money is a necessary evil so it's best to figure out how to make IT work for YOU before YOU work for IT your whole life. Luckily for you and me there are thousands of books from the brightest minds of past and present available at the click of a button. If you aren't sure where to start you can't go wrong with best sellers on Amazon. In case you aren't an avid reader I would like to note that even an hour a day of learning will put you on track to finish a few books a year.
Tip #5 Get a Side Hustle
This seems pretty straight forward but it doesn't have to be. One of the easiest side hustles I ever picked up was collecting bottles and cans from people at work. That few extra dollars a week added up over time and I cashed them in at the redemption center for almost $60 after a month and a half. Even done three times a year that's another $180. You don't have to bring in $100 a week. If you can rack up even ten extra dollars a week you will be scraping up another $520 a year. That's more than enough to get you through those rough winter bills or pay an extra months rent! Set some goals. Five extra dollars a week to start with then double it to ten once you've been hitting it consistently. From there you're free to set your own goals but remember not to beat yourself up if you come up a little shy. This should be easy or free money so yes your goals are important but there will be no repercussions if you don't meet them for the day; relax.
In closing I would like you to remember this amazing quote "Never save what you have after spending, spend what you have after saving." If you apply this principle to your life you can secure your own or your family's financial well being for many years to come.