How to save money?
This would be the question in minds of mostly everyone. We all keep looking for easy options to save some extra dollars.
So, here are 13 mind-blowing personal finance tips to save money and lead a financially secure life.
Here we go!
13 Mind-Blowing Personal Finance Tips For Money Saving
#1. Firstly, Some Basic Rules For Financial Success!
It might seem very difficult initially to handle your money smartly but it isn’t actually. Start with a basic investment strategy. Buy insurance and put the maximum in your 401(k) account. Clear your debts as soon as you can. These are some basic rules for financial success.
#2. Cover The Special Needs First!
Plans like Medicaid and 529A help you in saving up to $14,000 annually for your special needs child without denting your long term retirement savings. Medicaid, although regarded as a savings plan for the poor can help in saving for the special needs child.
#3. No More Impulse Buying!
Impulsive buying can dent your savings in a big way. When you spot your favorite snack or an item, take a deep breath and walk a mile. This will calm your nerves and will help you think clearly. Be wary of things which attract you in a store and try to avoid those things to stop yourself from buying on the go.
#4. How About Big Gains Through Small Caps’?
Thorough research is needed before you invest in stocks. Investing in the stocks of small companies has paid higher returns than the investments in big firms. It is always important to research on a company’s financial stability before investing with them.
#5. Opt For A College Bank Account
Care should be exercised while choosing banks to start your accounts. Colleges may have relationships with a financial institution and can offer a lot of benefits but it is wise to look for other options instead of choosing the easiest option. This will help in managing the funds better.
#6. Employer Stock For 401(k), Beware!!
It is better to trade the company stock as soon as possible to avoid the long term damage it can cause to your retirement savings. Companies by offering stocks in place of bonus and incentives to its employees are putting the employees at risk since the return of investments of the stocks is always subjected to market risks.
#7. Smart Saving Options For Seniors!
It is always advisable for seniors to look for smarter options to save more money. While many hotels offer attractive packages, it is always good to validate all the possible options before completing a deal. Smart choices can fetch good discounts and better savings.
#8. The Card Offer Spate!
Owning a credit card is easy since there are a lot of options with various benefits available in the market. Owning a credit with the best interest rates and perks is the toughest part. You will have to do a lot of homework and validate the choices on offers carefully before you pick that option. This can save you a lot of money as well as earn you perks.
#9. Watch Out For The Extra Fees In Your Flight Deals
Flying has never been cheaper. Budget airlines offer cheap prices by compromising on the amenities they provide. The profit generated is reinvested on infrastructure up-gradation. So the airlines are not offering cheaper tickets but they are redefining the market boundaries to maximize the profits.
#10. The Right Blends
Investing in equities and stocks will help in maximizing your savings to a greater extent. While equities provide long term benefits, investment in stocks will help you with short term gains as well. The right blend can make you richer and happier.
#11. The Dark Side Of Mobile Deposits!
The growing economy and plunging fuel prices may help in maximizing your savings. But there a minimal options and meager interest rates available in the market which can maximize your savings. Many online savings accounts offer 1.00% interest or more which helps your saving grow a faster compared to conventional bank accounts.
#12. What’s In Your Pre-Retirement Checklist?
Plan your residual living expenses early. It is always important to know where and when to start. The best and proven strategy is to start when you have acquired enough assets for basic living expenses for the rest of the life. The more you save the earlier you can retire.
#13. Beware Of Post And Pre-Holiday Shopping
While purchasing in the post-holiday sale is fascinating and tempting, it can eat your savings easily. It is always best to set a limit on purchases during the post-holiday period. A lot of other strategies such as “no-spend policy” and “essential buying only” can be adopted to stop unnecessary purchases.
It is always good to research and analyze various options before we embark on our financial savings journey. Choosing the right options pay good dividends and makes you a richer and happier.
Hi, my name is Jon and I run Compounding Pennies. I’ve been interested in personal finance since high school and love writing and talking about it. You can learn more about me in the Authors section of this site.