Learn how to build wealth before you turn 40 with Payday Wings. Expert tips to help you achieve financial freedom.
The high cost of living today can put a strain on your finances, making it easy to make poor financial decisions. However, by developing good savings habits, you can enjoy a stress-free life. It’s crucial to track your income and expenses, as spending and saving money comes down to making smart choices. Learning how to allocate your finances can help you satisfy both your wants and needs, giving you the financial freedom to live the life you desire.
Here is the ultimate guide to save money before turning 40
Be Realistic About Your Incomings And Outgoings
For developing a habit of saving money, the first and foremost thing that you should do is create a budget. You need to be realistic about all your income and spending. You should exactly know what money you have and when you will have it.
Check For Interest Rate For Savings Account Both Offline And Online
Make sure you are getting the best interest rate for your savings account in a bank or from online saving account.
Know Your Net Worth
This is the sum total of your assets (bank account balances and investments, etc.) minus your debts (personal loans, home loans and credit card debt, etc.). Get a big-picture perspective on your finances by knowing your net worth.
Not To Miss Credit Card Payment Dues
Missing out on your credit card payment dues will hit you with a big charge. Therefore, you should set up a direct debit payment option to make sure you never miss the due date.
Pay Your Credit Card Bills In Lump Sum
It is easy to pay a minimum credit card bill payment but that will hurt you in future when you need to pay a whole lot of money. Therefore, it is important to pay off the entire credit card bill at a time.
Use Credit Card Rewards Wisely
A lot of credit cards now offer cash back and reward points that you should use wisely to make an important purchase. Make sure you research carefully about what you can do with the reward points.
Know Your Credit Score
It is important to have good knowledge about your credit score. The more you pay your bills on time the more you can build your credit history strong. Having a good credit score can help you apply for a loan with best possible rates.
When Possible, Pay With Cash
This may not be possible every time but when making purchases at local retailer outlets you must use cash. You will see a big difference in your credit card bills when you use cash for small day to day purchases.
Avoid Signing Up For Department Credit Cards
For your first purchase many departmental store credit cards offer you 10% off on all your purchases but they can be too tempting for your pocket. They charge you a very high interest rate and there will also be high late payment charges.
Make A Grocery List And Stick To It
As far as grocery shopping is concerned, there are number of things you can do to cut down your spending. First don’t shop without a list. Make a list of all those daily day-to-day things that you may need in a home. If you don’t have a list, you may end up buying more than you need. Avoid impulse buying and instead go for smart buying. Remember to stick to your list. Don’t be tempted towards ongoing offers or expensive purchases.
Cut Down On Outside Food
Avoid dining out every alternate day. Keep it for special occasions only. A lot of money can be saved when you cook food at home. When you feel like going out with friends, call them at your place and indulge in some cooking which can be fun and cost-saving.
Put A Portion of Your Income To Savings Every Month
Try to put a portion of your income to savings account each month. It has been recommended to save 20% of your income every month. You should reserve 50 percent of your budget for essentials like rent and food, 30 percent for discretionary spending, and at least 20 percent for savings.
Know How Much You Earn And How Much You Spend Each Month
It is important to know how much money that have coming in and going out. Make a proper list to see your incoming verses outgoing finances.
Cut down on electricity consumption
Reduce the need of electricity and unplug the appliances when not in use. When you are planning to buy new electronic appliances, make sure to buy the ones that have energy-saving features.
Reduce Service Levels
Look for better service plans for insurance, phone and the Internet. Due to huge competition among almost all carriers, they offer huge discounts and special packages. So, try to negotiate with your current service provider for a lower rate.
Buy A Car With High Value
If you are planning to buy a new car, make sure your purchase has high value. Buy a latest model that last a long time with low maintenance costs.
Try To Spend Less On Entertainment
Many people are in a habit to spend large portion of their income on entertainment. Luckily, these costs are easy to cut down and control. Start suggesting your friends for lower cost get together, have a movie night at home instead of the theatre and cook food at home instead catching up at an expensive restaurant.
Cancel Your Expensive Gym Membership
Go to Public Park, practice yoga and indulge in some good exercises at home instead of maintaining an expensive gym membership. This would help you in saving money with ease.
Weigh Up Your Subscription Services
Cancel anything you don’t find worth the cost. In the age of high speed Internet, you can choose to withdraw your cable connection and save money. Also, video games subscription, magazines and other similar expenses can also be eliminated.
Sell Items You No Longer Need
Go through your belongings and see things you are no longer using and sell them. Sell unwanted clothes and old furniture instead of throwing them. This can be a good way to earn extra income.
Start A Side Job
Use your free time to start some simple side business like babysitting, dog walking, content writing etc. You can even start selling some art and craft work online and can indulge in some beauty products or jewelry selling business.
Rent Your Extra Space At Home
It is difficult to adjust with high cost of living with single and restricted monthly income. Therefore, the more you earn the more you can save. For such purpose you can rent out second or third bedroom or any extra property you own. This could potentially increase your income and help you to save more for brighter future.
Save Money For Retirement
Smart spending of today will provide the foundation for saving good amount of funds for retirement. Create a budget to save as much money as possible and make a goal avoiding unnecessary spending to save for your retirement.
Develop An Investment Plan For Your Saved Finance
Invest in stocks, buy some bonds and save portion of your income on buying gold and silver and put some portion of your income in cash in the form of savings account.
Save Money On Transportation
Carpooling to work, using public transport to visit friends can be a great trick to save money. You can also save money by washing car yourself.
|Build wealth expert tips. Start planning for your future today and achieve financial freedom.