Save hundreds per month and still buy what you love
1. Qapital App
Qapital has you set “Goals” within the app that follows particular “Rules”. So you can have goals like saving $1,000 towards a summer trip. You can then set those rules to move $20 every time you get paid. You can even save every-time you use your card by rounding up to the nearest $1, or $2.
This app is my secret weapon. Remember that becoming rich is not about money you make — it’s about the money you KEEP. I use this app to save portions of every check I earn online. It does it automatically for me, so I don’t see it happening!
2. Pay Yourself FIRST
Don’t save what is left after spending; spend what is left after saving. -Warren Buffet
This is a very simple concept, but very important. Every-time you receive a check, you should set aside 10% into a savings account. You do this before paying the bills, before you go shopping, and before you go out with your friends. You “pay yourself first.”
It’s putting your savings first and making it automatic.
3. Separate Your Money
Most people have their checking and savings account under the same bank. The problem is that your checking can pull from your savings and eat away your emergency funds. That’s why you set them up in separate banks.
I have my checking account at a local bank connected to my online savings account. I have to transfer the funds if I want it to go from one account to another.
4. Credit Cards
Debt is an expensive place to be and you can never be rich if you are in debt.
Pay off your credit card each month. If you can’t pay them all, at least pay down the one with the highest debt.
Call your credit card company and ask them to lower your APR. Tell them you are a customer that has been with them for X years and considering transferring to a low interest card. Most companies will lower, so they can keep your debt.
If you can’t afford to buy five, don’t buy one. Get rid of things — it shows you what you don’t need. Strip down to basics. Reverse consumerism. Step out of momentum and mix up your spending habits. Get out of impulsive buying — expenses grow to your income (more money more problems).
If you DO buy, switch to cash — hard to do!
6. Audit Yourself
At the end of every month spend at least 30 minutes calculating money coming in and money going out. If you have more money going out than coming in than tracking that expense will help you minimize it.
The best app for auditing yourself in Mint. Once you sync your account transactions, it lists everything you are spending your money on into categories. You can create subcategories and manage your expenses.
7. Educate Yourself
Personal finance is what a lot of people struggle with. This is something that should be taught at school from a young age. Learning about it will increase your financial IQ, the way you spend money, and the way you make it.
You can increase your financial IQ by:
Reading like “Total Money Makeover”, “Intelligent Investor”, and “I Will Teach You To Be Rich”
Listening to Podcasts
Reading blogs about personal finance like this one
And attend Seminars
This article is for informational purposes only, it should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.