Here it is. My quick list of ways to win with money.
- Spend less than you make.
- Invest early.
- Live on a budget. For a great free budgeting program go to: EveryDollar.com All you need for set up is an email and a password.
- Don’t compare your wealth to others. Make goals that match your values.
- Make a very high income.
- Write down your financial goals.
- Work hard.
- Be disciplined. See my previous post.
- Save 10% of your income for retirement.
- Be united with your spouse about money.
- Educate yourself about money.
- Be content.
- Know your values.
- Create passive income streams.
- Invest in Real Estate.
- Own a business.
- Give to causes important to you.
- Define your financial priorities.
- Treat debt like a dreaded disease. Use the snowball method to attack your debt.
Most people in America have some form of debt in their life. There are arguments about what ‘good’ debt is vs ‘bad’ debt. The Bible says the borrower is servant to the lender. There are several studies that report that money issues is the leading cause of divorce. As a married man I can attest that money fights with my spouse have been among some of our most intense disagreements. We have debt. It brings stress to our marriage but we don’t allow it to consume us. I recently got a summer job (side hustle) to knock out some of our debt. It is medical debt from a couple hospital visits. I decided to UP my resolve to knock this debt out. A side hustle can be anything you can do to put extra money in your pocket. Delivering pizzas, sorting boxes, selling on Ebay, garage sale are just a few examples. Dedicating time to a side hustle can help you throw bigger payments toward the debt in your life. I just read a great book titled Hustle Away Debt by David Carlson. He shares some great thoughts on differing types of side hustles. He used side hustles to attack his student loan debt. What amount of debt do you have in your life right now? Is it a nuisance? Is it affecting your relationships? Is it affecting your sleep at night. Don’t remain paralyzed by debt’s grip on your life. Seek out a side hustle. Imagine what an extra $200, $300, or $500 a month could do to help you knock debt more quickly out of your life. Ask yourself what skills you have that somebody could pay you money for. Are you tech savvy? Mechanically inclined? Handy man? Think about your hobbies and interests? Could you turn these talents into part time income? Get a side hustle into your life and send debt running.
Below are some examples of side hustles.
- Working Retail
- Food Delivery
- Waiting Tables
- Child Care
- Concessions at Sports Stadium
- Mystery Shopping
- Caregiving & Senior Services
- Selling on Etsy
- Virtual Assistant
- Flipping Things on Ebay or Craigslist
- Graphic Design
- Creating YouTube Videos
- Creating An Online Product To Sell
- Music Lessons
- Freelance Writing
- Web Development
Are you going to be receiving a tax refund this year? The average tax refund in the U.S. is $3,120. What do you usually spend it on? Vacation? New furniture? Pay off debt? Invest for retirement? Here are some suggestions on the best use of your tax refund.
1). Fund a $1000 Emergency Fund.
Why? Life will happen. The unexpected will occur. Cars need repairing. Unexpected medical bills occur. Things wear out and have to be replaced. Having this $1000 is a buffer between you and life. Don’t neglect getting this done with your first grand. It’s a good idea to put this money in a separate savings account that can be linked to your checking account. I highly recommend http://www.capitalone360.com or http://www.ally.com Both of these can be set up in about 15 minutes online. Transferring the money to your checking account usually takes 48 hours.
2) Have some fun with some 0f it (up to $500). You worked hard for this refund and you deserve some fun with some of it.
3) Use your remaining money to Pay Off Debt! If you have any other money left after the fun, Pay off Debt!! List all of your debts smallest to largest. Place your remaining money toward the smallest debt. Debt is just stress for most families. Putting some portion of your refund toward debt helps relieve the stress the debt puts on your life.
Best of luck!