1. CREATE A BUDGET!
I cannot begin to tell you how important a budget is in the big scheme of gaining financial independence. Creating a budget allows you to determine how much money you want to allocate to each line item so that you do not overspend, and it empowers you to be intentional about saving. To prove my point, do one of two tests.
a. Pull the last three months of your bank and credit card statements and categorize your spending by month.
b. Compare your bank and credit card statements from the same month last year. For example, if you are evaluating June 2020 expenses, compare it to June of 2019.
Trust me; you will be surprised by what you spent in some categories.
I advocate for a monthly budget, but if that seems too big of a task, try budgeting each pay period. The point is to find a method that makes the most sense to you and stick with it. It will not be perfect and will take you at least 90 days to work out all the kinks, but the most important take away is to start being purposeful with your finances.
2. PICK UP THE PHONE!
Strange right? Most people fail to pick up the phone to make some important phone calls that could SAVE YOU MONEY immediately. Here are a few suggestions to get you started:
- Cell phone Company 📱
- Electric Company💡
- Internet/Cable/Phone Company
- Home Owners Insurance 🏡
- Auto Insurance 🚙
- Life/Health Insurance
Earlier this year, I made a few of these very phone calls and received quotes to save not just hundreds of dollars, but almost two thousand dollars a year. So do not wait, run and make those critical phone calls today!
3. MARK YOUR CALENDAR. 🗓
Once you make those ever-important phone calls to get your bill lowered, immediately set a reminder on your phone or calendar to call back when the contract expires. I can not tell you how many stories I have heard where people all of a sudden get an outrageous bill, and think, well, it was just the holidays, so we used more ____. Then, the next month's statement comes in before they call only to find out that their contract expired and was charged some ridiculous rates.
4. CUT DOWN ON GROCERIES.
Seem's impossible, I know, but take some time this weekend to inventory what you have in your freezer and pantry and base next week's meals on what you already have. Get creative. Google, "Recipes with X, Y and Z ingredients," and viola, suggested recipes appear right before your very eyes. You will be surprised how little you will need from the grocery store next week!
5. PAY CASH! 🤑
This is huge! Studies show that when we pay cash, we think before we buy. Now I know the times we are living in make this challenging, but paying with cash could include using a debit card. I bet you think a lot harder about a purchase when you use a debit card that hits your account immediately than you do when swiping a credit card that you can worry about next month. Swiping a card that does not affect our cash on hand for our everyday purchases removes us emotionally from the transaction, and therefore, can cause us to spend more than we intend. I know it seems unrealistic, but try it for one month and keep track of what you spend.
6. IMPLEMENT A SPENDING FREEZE.
Pick a week where you spend NOT ONE DIME. Now, I am not here to tell you this will be easy; it is hard, especially if you are quick to order off Amazon at the click of a button or running to the grocery store for that one missing ingredient. This is one that will mess with your head if you are not careful. You know, the one that messes with you when you tell yourself that you are going to stop drinking that one cola you drink each week, and suddenly you have the urge for a soda every day. Maybe, you tell yourself that you are not going anywhere until you sit down a create a budget, but it happens to be the most beautiful day ever, and all you can think about is going outside. So go into this one with determination. Determined to wait one week before you buy anything, heck you may find that you do not need it after all. Now, let me be clear. The idea is not to avoid spending money one week, only to make it up next week. NO! The idea is to use what you have and not spend money so that you can save it. Please save it to pay toward debt, keep it as part of your emergency fund, college, retirement, etc., you get the picture.
7. DECLUTTER YOUR HOME.
Another big one, but you would be surprised by what you find around your house that you do not even use or forgot you had when you take some time to go through each closet, attic, storage space, and the like. Place these items for sale on Facebook Marketplace, E-Bay, or Craigslist, list on your local neighborhood App, take it to a consignment store, or even have a Garage Sale. Heck, you may find that you have enough of that item you have on auto-ship to last you a lifetime.
8. GATHER, DON'T SCATTER.
All right, this is where things get interesting. As you go through and declutter your home, take some time to try and store like items together or at least create an inventory so that you get an idea of just how many _____ you have. If you keep items dispersed throughout your home, storing a few here and a few there and forget, you could unnecessarily be purchasing household items you already own.
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