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Stop Living Hand To Mouth Once And For All

Living hand to mouth is something many of us do, yet none of us really like to admit it. Living hand to mouth is using your money as it comes in. You always seem to be waiting for that next pay day. You might even regularly find yourself in your overdraft or in debt because of it. Although earning more money can be beneficial, it isn’t always necessary. Here’s some advice that could help you to stop living hand to mouth once and for all:

Understand Your Income And Outgoings

The first step to stop living hand to mouth is to truly understand your incomings and outgoings. If you only pay attention to your income, then it’s no wonder you don’t have any money leftover at the end of the week/month. If you have more going out than you have coming in, you need to do something. Find ways to cut back and economise. Some people have gone as far as downsizing their cars, or even their home. This might sound extreme to you, but just because you could just about afford something doesn’t mean you should.

Act Like You Earn Less Than You Do

A good rule to stop living hand to mouth is to act like you earn less than you do. You don’t necessarily need to scrimp, save and watch every penny, but there are a few simple changes you could make to help you have more money left over. For instance, buying lunch every day can cost a lot of money, so why not buy the supplies to make your own for the week? Treating yourself to a coffee every day or even a couple of times a week all adds up too. If you were to buy 3 starbucks coffees a week, that would come to $6 or more. Over the course of a month, that’s around $24. Over time, this can really add up! Start acting like you earn less than you do when you go out to eat, catch up with friends, or go shopping. Take advantage of deals and don’t buy something if you don’t need it.

Create A Spreadsheet Or Use An App

To help you keep track of your incoming and spending, make a spreadsheet or use an app. There are so many apps out there that can do all of the work for you, and some of them will connect to your bank accounts so you can see what’s going on in real time. By using a spreadsheet, you can really personalize it to you. It’s a very organized way of keeping track of what’s going on, and the more you see yourself save, the more you’ll want to carry on!

Pay Off Your Debts As Fast As You Can

If you’re in debt, as many people who are living hand to mouth are, aim to pay them off as fast as you can. You should do this before you start saving. Having money saved is a must, but doing this before you’ve paid off your debts doesn’t make sense. Your debts will accumulate lots of interest, which means you’re actually losing money while you’re trying to save money. It’s worth knowing payday loan regulations so you know what you’re letting yourself in for. Some people find it useful to pay off their largest debts first so they aren’t accumulating as much interest, but others find it useful to pay off the smaller debts so that they ‘snowball’ and give them more momentum. It’s up to you which way you do it, as long as you get them paid off as soon as you can.

Save Left Over Money

When you’ve paid off your debts and you’re taking the tips in this guide, you should have some left over money each week/month. Don’t spend this money when you don’t need to. Put it in a savings account, so that you begin building wealth. Having a cash cushion behind you will help you to feel more at peace and give you a sense of security. Bear in mind that if you’re putting your money in an account that doesn’t accumulate interest, you’re not really saving. You should put your money in an account that offers interest, so you’re accumulating even more wealth.

These tips should help you to get your finances back on track, and stop living hand to mouth. Living hand to mouth can feel unstable and not very pleasant, so the sooner you stop, the better. It might take time to accumulate wealth and pay off debts, but you can do it with this advice and good focus!

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Personal Finance: Save Today to Invest in Your Future

Young people just getting started out often fail to recognize the huge earning potential they have by saving today in order to invest in their futures. There are so many things you can do to cut down on what you are spending so that you have extra money to invest with the intent of growing that money into a tidy nest egg. Looking for some innovative ways to save today to invest in your future? Here are a few ideas.

Do You Really Need that New Car?

Actually, a new car is just an example of all the things we buy when they aren’t really needed. Yes, it would be nice to have the latest sports car on the lot and it sure would be cool to own the latest upgrade to that gaming system. However, do you really need it? One of the easiest ways to spend more money than you have to spend is in getting the next, best thing on the market.

Try asking yourself if what you have is serving you well. Is there any advantage to buying a newer model? Obviously if your tranny just dropped out of your vehicle you probably need a new one, but just to keep up with trends is another matter altogether. Think before you buy.

Comparison Shop for Deals Wherever Possible

Another bad habit many people get into is in failing to do comparison shopping to find better deals or better rates. One of the most neglected comparison shopping techniques is to go online to shop for better utility rates. Many people still aren’t aware of the fact that government deregulated utilities a long, long time ago which means that you may not be locked into the rates you are currently paying. Texas is one state that offers cheaper energy because there are a number of suppliers that have agreements in your area of the state. You can get info online in regards to the suppliers available in your area and the rates and services each offers with their current promotions.

What to Do with the Money You’ve Saved

At the end of each year, after you’ve filed your tax return, take any money left to invest according to the amount you have available. If it’s a significant number, you can buy stocks and/or bonds, but if you only have a small amount, you might be better off buying something called a penny stock. It all depends on the amount you have available and the amount of risk you are willing to carry, but in any event, do invest in your future now.

One final piece of advice about investing in your future is probably called for here. Just as you are advised to take it easy on spending, it is also wise to take it easy on investing. Start slowly with small amounts and do your research. Never rely on the word of a broker, no matter how reputable, unless you fully understand what you are investing in. This has proven to be a huge mistake for a great number of investors in the past and a mistake you can learn from. Invest just as frugally as you spend until you know what you are doing. In the end, the loss is yours just as the gain would be, so take it one step at a time.