Pretty-Credit

When it comes to managing your money, simplifying is a great way to save a lot of time and extra money. There are lots of services that try to help people manage their money with tools such as motivation charts and app reminders, things that just add more tinkering around the edges rather than actually solving the problem, but other people use much simpler methods that work better along with whatever other system they already use.

“Saving money doesn’t really require special tricks or apps. Just set aside (and don’t touch!) what you want to save.”

-Arnie Weissmann

1) Set aside 10% of every paycheck before you even see it . If you do this at the end of month when your checking account is low from spending during the month, you can save a significant amount.

2) Don’t spend more than 20% of your income on rent/housing

3) Think of one thing you want to buy but aren’t sure if it’s worth it . Ask yourself “if I bought this, will my life be better? Will my life be worse?” If the answer is no, don’t buy it. This eliminates a lot of buying things you don’t really need and makes for a pretty stress free life.

4) Set a good example for your friends and family by not wasting money when going out with them . People naturally follow their friends’ behavior. You will automatically seem like the thrifty one if you’re not treating your friends to expensive dinners and buying fancy things.

5) Learn how to cook . When people get good at cooking, they naturally spend less money on food because they know the ingredients that make up a dish and can make something very close or even better than what’s available in restaurants for cheap.

Saving doesn’t require anything but willpower. If you’re thinking about spending more than what you have, just set aside a small amount of cash in your wallet before going out so when you reach for your credit card it will seem much more extravagant to do so then if you had just put that same amount away into savings before going out. People who save learn to appreciate what they have and what they can get for the money that they do spend. It’s a lot easier to stop spending when you realize that there is no need to buy something when you already have it in your home or don’t really want it.

“You know how to save? Make saving a priority, set aside what you’re going to save before anything else, and never touch it.” -Vicki Robin

There are also apps such as Acorns that make saving easier by rounding up purchases on linked credit cards and investing the change from these transactions. This app works best with larger purchases since it requires more funds total but saves you from thinking about saving after each transaction.