I have a gift. I love to over complicate life. However, when it comes to your money, the simpler you keep it, the better. In fact, some of the best principles for paying off debt and growing wealth arise from easy practices. These simple money strategies keep your hard earned cash from disappearing each month.
Move Money Out of Your Checking Account ASAP
The longer you allow money you’ve not budgeted to sit in your checking account, the greater your odds of spending it. When your paycheck (or unexpected cash) hits the bank, it’s time to move it right along. Obviously, pay your bills and budget well with what you have. But also, move excess funds into savings accounts. We actually have ten different savings accounts each used for different purposes. The small step of preventing a block between spending those extra dollars is worth it. Obviously if a need arises, you can transfer those dollars back into the checking account, but odds are good you won’t need to.
Schedule Your Bills in Advance
Late fees chip away at your financial potential. For this reason, it’s smart to either put your bills on autopay when the feature is available or schedule bill payment as soon as an email arrives. Many companies even let you select on what day of the month your payment will be drafted. If your income is irregular, this may not be your best strategy, but if it is, there’s no reason not to pay your bills on time. Be sure you mark in any personal finance software that you may use that you’ve scheduled the bill if it’s not on autopay. You don’t want to inadvertently pay a bill twice.
Set Savings Percentages
Whether it’s a bonus or an unexpected cash gift from someone or the sale of something you no longer need, you need a plan before money arrives. Consider setting up savings percentages for your unique goals. Begin with potential taxes for any of the above if those were not deducted before you received the funds. From there, take out a percentage for retirement. We typically put back 15%. If you choose to do so, it’s a good idea to give a percentage of money away. We choose around 11% (sometimes more when there’s an occasion we feel passionate about). From there, the other categories are up to you. Whether it’s college, Christmas, a sinking fund for vehicles or home repair, vacation, or any other long term goal, it’s up to you. Having a percentage plan break down helps you allot those funds immediately without overthinking where money might go.
Designate Over Budgeted Money
When we were paying off $127k in debt, nothing delighted me more than coming in under budget. Even if it was $2.81 on the light bill or $0.75 on the grocery budget, I lived to win. And when I did win, I almost always put whatever amount it was toward our next debt snowball payment. Saving money is awesome, but you have to do something with the money you save to make a difference in your finances. If you’re paying off debt, this is a fantastic way to add a few bucks here and there. However, it’s also a great strategy for your vacation fund or even mad money fund.
Pause Before Purchasing
Spending can become an unhealthy habit. The more you find yourself needing something immediately, the more you should take a step back before making a purchase. Impulse purchases are legit. And so it’s wise to take some time before you click checkout on your Amazon cart or head to the front of the line at your favorite store. If it’s not a true need, sit with your decision for at least twenty-four hours to make sure you really want the item. Obviously, this guideline doesn’t apply to things like groceries or other budgeted categories. But, giving yourself can really help sort needs over wants and cut down on unnecessary buys.
Don’t overcomplicate things. Use these simple money strategies (and maybe a few more of your own) to create healthy boundaries for your finances.
My book is now available: Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After. You can also check out The Debt Free Devotional
This post contains an affiliate link. That means when you get a great deal, learn about a way to save, or maybe even something for free, I may end up making a small commission. All prices are subject to change.
