You could be saving $2200/month……
But.. our everyday habits are ruining our bank accounts. Here’s how
- Starbucks Coffee – Yes, that coffee overkill is real. No coffee is worth a 300 % hike up with amazing branding and a plastic cup holder. The coffee blend might be the best you’ve ever had, but…. the coffee is still mass produced, processed, stored for some time and then given to you. A custom coffee shop of your liking or a coffee brewer would help you tremendously. It’s not just the coffee that plays on your psych. It’s the croissant and other delicatessen you purchase with it that eats up $7-10 on a daily basis. In a rush getting to work, you figure you might as well have your breakfast and coffee at the same place which ends up being a habitual Monday through Friday routine. In a week that’s $50 dollars.. In a month that’s $200. In a year that’s $2400. Now, imagine what $2400 can do for you if it’s invested into a well managed portfolio.
- Financial Knowledge Isn’t Just for Experts – The truth is that there is no such things as a financial expert, minus inside traders, which we know to be illegal. (Or so they say…) Understanding how to invest in even the smallest of our savings is a huge deal…. Do not let the size of your bank account deter you from reaching out to a financial advisor to figure out how you can invest your savings. $50, $1000, $1000 or $10,000 are all viable investment starting options – so size in this case, really doesn’t matter! For starters, don’t give yourself too much credit. We’re not going to save that extra money on a Friday night or we will go YOLO with our friends most of the time. Instead, use that iPhone for something other than finding directions and buying your groceries. There are many apps that help you automatically invest a small portion of your money without the heavy fees and investment jargon. The Acorns app is a great way for individuals looking to start an investment plan with options as low as $5. The app rounds up every transaction you have invests it and over time grows your money. You can choose from various investment styles from safe to incredibly aggressive and make very sound informative decisions. If you don’t have $5 to invest, it’s time to rethink your priorities. You can experience exponential growth in the long run. That starbucks bill you routinely pay, why not invest it in yourself. You’ll be surprised to have 20,000 in your savings over the course of time even though your checking has less than 100.
- Eat at Home –Those lazy Sundays and post work meals on Seamless and GrubHub do indeed add up. Learn to Meal Prep (Yes, it’s a real thing). Blue Apron or Fresh Direct can deliver the groceries to your door. On Sundays, finish your 8 hour Netflix and chill run a bit early and cut your vegetables and store them in your fridgerator. Chicken, Salmon, Cod or the basic vegetarian dishes take roughly 30 minutes to set up. You’ll be surprised how much your credit card starts to miss you! Your bank account will see three, four or even five digit balances while your credit card statements are looking bleak.
- Learn to balance your budget for your social outings. Im sure we all like to have fun, but doing so on a budget is very important. Have no self control? No Problem, most of us don’t have that degree of control. Pick two days of the week where you allow yourself to go all out. Grab a drink, go out with friends and have lavish meals and laugh your heart out. Do so with cash. Set yourself a budget and leave your credit cards at home. Go out with your ID and a set amount of cash so that when you wake up from that hangover, you know rest assured knowing you only spent what you had. If, for those of us who are a tad bit more responsible and know that we do use our cards often, its important to get yourself a proper credit cards with a great Get yourself a rewards card like Chase Sapphire. Use that card to pay for everything and pay the balance off before the month’s statement ends. If you can’t control your card spending habits, we totally get it, bring cash and leave everything else home!
Don’t just get any credit card because your credit score is crap. Most, if not all credit cards that are offered to lower-tier consumers end up having insane interest rates, annual fees and penalize you heavily when you miss payments. Instead, do your homework. Check the APR, reward incentives and annual fees. IF your score is atrocious, apply for a SECURED credit card. It acts as a debit card where you can only use money you have in the card. Over the course of time (90 days) your credit score will see a hefty boost!
Here is a video recap of what to do and what not do: