Are you looking for ways to enjoy greater financial freedom? Perhaps you’re worried about spending too much of your monthly earnings, or maybe you just want to ensure a comfortable retirement for yourself down the road. Regardless of your reasoning for wanting to lead a more financially savvy lifestyle, the good news is that there are plenty of small changes you can start making right away to make a huge difference down the road.
Our 10 ways to make your family more financially savvy:
Review Your Spending Habits
Start by taking some time to really analyze your spending habits. You might be surprised at what you find. Commit to tracking every dollar you spend for one full month, then categorize your spending into different categories (bills, mortgage, entertainment, food, etc.).
Create and Stick to a Budget
Once you have a better idea of where you’re money is going, you’ll be able to see where you’re spending unnecessary amounts of money and create a budget accordingly. For example, that morning coffee you grab from the corner cafe on your way to work each day may easily add up to nearly $100 per month. By making your own coffee at home instead, you can spend closer to $10 per month instead; that’s a savings of about $1,000 per year!
Consider Necessities Versus Luxuries
Now is also a good time to consider how much of your money is going towards necessities versus how much is being spent on things you don’t necessarily need. Things like your mortgage/rent, groceries, and basic utilities are all necessities, but what about that 500-channel cable package? Probably not. Did you know the average cable bill in the United States is around $80 per month? There’s another nearly $1,000 per year you could be saving; if you don’t want to say goodbye to your favorite TV shows altogether, consider switching to a streaming service, such as Netflix, for less than $10 per month.
See About Getting Monthly Service Fees Lowered
Tired of paying those monthly service fees on your cell phone bill or cable bill? What about those credit card membership fees? One polite phone call to customer service could be a great way to get those waived, which means more money in your pocket.
Subscribe to The Perpetual Wealth Strategy
What about ditching your traditional banks altogether? The Perpetual Wealth Strategy has been around for more than a century and allows people just like you to become more financially empowered by creating your own banking system through your life-insurance policy.
Take Advantage of Free Financial Planning Apps
These days, there are all kinds of free financial tracking and reporting apps that can help you do anything from create a budget to set and achieve financial goals. If you’re not signed up for one of these already, consider checking out a service like Mint today.
Avoid Impulse Buys By Unsubscribing From Mail Ads/Catalogs
You might not realize it, but those catalogs and ads you receive in your mailbox can lead to a lot of unnecessary impulse buys. If you’re the type of shopper who’s easily tempted by a supposedly great deal, consider unsubscribing from local mail ads and catalogs. If the temptation isn’t there, you’re less likely to spend money on things you don’t need.
Give Yourself a Weekly Cash Allowance
Rather than using credit or debit cards for your personal purchases, consider establishing a weekly spending allowance. Put that amount in cash in your wallet each week; this will make you think more carefully before you spend and prevent you from spending more than you have.
Take Time Before Making a Major Purchase
Before making any major purchase, whether it be that piece of jewelry you’ve been eyeing or a new car, make yourself take at least an additional 48 hours to think it over to avoid impulse buys.
Shop Around for the Best Insurance Rates
Finally, make sure you’re getting a good deal on the necessities in your life, including insurance. Shopping around for various insurance quotes once a year is a great way to make sure you’re getting the lowest rates on the coverage you need. If you’re in need of life insurance, be sure to get a quote from Paradigm Life as well.
FAQ
Q: What is a practical approach to analyzing family spending habits?
A: A practical approach involves tracking all expenses for a month and categorizing them, which can highlight areas of unnecessary spending and inform budget adjustments.
Q: How can families benefit from using financial planning apps?
A: Financial planning apps assist in budget creation, spending tracking, and setting financial goals, helping families manage their finances more effectively.
Q: What strategy is recommended for making significant purchases?
A: It’s advised to wait at least 48 hours before making a major purchase, reducing the likelihood of impulse buying and ensuring thoughtful spending decisions.
