Personal Finance Hacks You Wish You Knew Sooner
November 9, 2022 | Posted by: Sherry Corbitt
There are so many financial hacks which you may currently be incorporating into your day to day life. Yet there are always new hacks and tricks, which you may not know about. Consider some fantastic hacks which you just may need to add to your list of financial practices.
Protecting Your Identity
When it comes to your finances, this may be a factor that you have not considered before. You typically see events like this occurring in movies or tv shows, yet they are definitely common to occur in everyday life. Now you may be thinking ‘I always keep my financial information protected’. Although you may believe this, there are so many ways in which your personal information could be accessed by scammers. A few usual tactics to access your information can be through public wifis, unsecured websites, or even clicking a setup link. When someone gains control of your personal identity, it can be a very long and strenuous process to get through. Being aware of the most used scammer tactics today will elevate any concern about the safety of your personal identity.
What is the 50/30/20 guideline? You may not have even heard of this term before. It is essentially a three number budget. It breaks down your income into three categories; needs, wants, and savings. After calculating your income after taxes, you should break down how much would go into each percentage. Starting with your 50%, which is your needs. This should include your mortgage/rent bills, groceries, healthcare, and transportation. This category is the largest, so it undoubtedly needs to have half of your income put towards it. Onto our 30%, we have our wants. This can be anything outside the needs category, which is technically “unessential”. This could range from recreational activities, memberships, subscriptions, and leisure shopping. Now although many people may think that 30% for your wants may be too high, that isnt the case. When you add up all your monthly subscriptions, along with activities you do with your friends and family, it comes to a decent sum. Having it in the middle section is only appropriate. Then lastly we have our savings at 20%. This category can cover a large variety of things, such as putting savings towards your emergency fund, RRSP, or other savings account, along with paying off debt. Although this is the lowest percentage, it is one of the most vital categories in maintaining your financial security. This guideline is an excellent tool in uping your current budget!
Practicing the 30 Day Rule
This is another guideline practice you can add in your day to day life if you need assistance with your spendings and savings. Are you an impulse buyer or do you sometimes find it difficult to avoid spending non essential items? We all certainly do from time to time, yet if this is a regular occurrence, then you easily could be wasting hundreds of dollars unnecessarily. Every time you see something you are tempted to buy, dont. Instead, write down the item and price and walk away. After 30 days have passed, return to your list. See whether or not you want to buy the items that you wrote down. For the most part, you probably wont want them or you may even have forgotten about some of the things you wrote down. By using this efficient shopping hack in your life, you can positively change the way you make purchases and save money.
This financial hack can certainly be overlooked. You potentially may not be open to the idea of someone looking at your personal finances. Some also feel like they can handle their finance themselves just fine. Yet when you keep an open mind, you can discover that hiring a financial expert can actually be just the thing to give your financial life a shove in the right direction. Financial advisors are trained professionals, who have years of experience assisting people in bettering, not only their finances, yet also the quality of their lives. Try booking an appointment with one, even just to talk. They are always willing to listen to your concerns and even offer practical advice.
These financial hacks certainly are very beneficial for everyone. You should try and see how you could add these to your day to day life, since they will not only keep your finances protected, yet they will also enhance them to their fullest potential.
-Marissa (2021). Top 50 Money Hacks to Save Money Like a Minimalist. A to Zen Life. Retrieved from https://atozenlife.com/money-hacks/
-Ritlop, Rachel (2022). 25 Personal Finance Hacks You’ll Wish You’d Learned Sooner. The Confused Millennial. Retrieved from https://www.theconfusedmillennial.com/25-personal-finance-hacks/