5 Tips to Improve Your Finances Immediately

Being good with money is about more than just making ends meet. With small investment efforts, you can secure a favorable financial future ahead of you. Here are 5 tips to get you started:


1) Set Savings Goals – People who set a money savings goal save faster than those who don’t! What do you want to save for? A new house, new car, new laptop? If you name your goal you’ll reach it faster. One more tip, if you’re new to saving, try starting with a small goal.

2) Wait Three Days – Part of saving money requires prioritizing. Before you are about to make a big purchase, wait three days. During that time consider your saving goals and the purchase and consider whether or not you really need that item.

3) Pack Your Lunch – Exactly how much money you can save by cooking at home may be enough to make you delete your favorite delivery apps from your phone. While most people think about saving money by eating dinner at home, packing a lunch every day at work is an easy way to cut back on spending while also eating healthier.

4) Shop With a List – Shopping with a grocery list can help you save on time and money. Go armed with a list and stick to it, especially if your kids are “helping”.

5) Consider the True Cost – Calculating the true cost can be used to evaluate purchasing anything, from a cup of coffee to a home. For example, let’s look at the true cost of a cup of coffee. How much does a 12 oz $3 cup of coffee (after sales tax) cost you? You would probably answer $3, and you would only be partly right. Yes, $3 is what the cup of coffee is being sold for, but it’s not the true cost of the coffee. You need to perform a few simple calculations to determine exactly how much it costs you to buy that $3 cup of coffee.Here’s what your can use when evaluating any purchase:

  • Before Tax Income Price
    • How much money do you have to make before taxes to buy the $3 cup of coffee?
  • Life/Time Price
    • How much of your life will you trade for that $3 cup of coffee?
  • Price of Convenience
    • How much would it cost you to make the coffee yourself?
  • Annual Cost
    • How much does the coffee cost you if you buy it every day?
  • The Future Value of Money
    • How much would the $3 you spent on coffee be worth invested in 5, 10, 20, 30+ years? How much would the money you are spending on coffee every day be worth in the future?

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