With increasing interest rates and rising prices, many people are seeking ways to make their money go further, save more, and simplify their financial lives. Managing consumer debt is also a crucial aspect of overall financial well-being.
A financial life hack refers to simple and effective strategies to better manage your money and achieve your goals more quickly, without excessive effort. While true shortcuts don’t exist in achieving financial health, adopting simple actions and habits consistently can lead to improvements in your financial well-being.
Over the years, we have learned valuable tips from our clients who face similar challenges. Here are some of our favorite and simple “financial life hacks” that can improve your financial life.
1. Dig into Your Debt
One of the most effective financial life hacks is to save money on interest. Take a look at how much you’re paying each month in high-interest credit card debt. To find the best approach for reducing interest fees, consider working with a trusted national financial counseling organization like FinanceMaster. Their caring and certified counselors will thoroughly understand your financial situation and suggest debt payoff options that work for you.
2. Set up a Dedicated Spending Account
Create a dedicated account to automate the payment of your monthly recurring bills, such as rent or mortgage, utilities, cell phone bills, internet, and other expenses. This not only simplifies the bill-paying process, but it also enables you to “set it and forget it” by automating a transfer deposit into the account each time you get paid. If you receive two paychecks per month, split the necessary amount to cover all your expenses into two monthly automated deposits. By doing so, you’ll reduce the chance of late fees, simplify your monthly administration tasks, and gain peace of mind when it comes to paying those bills.
3. Delete Payment Info from Online Stores
Online stores thrive by providing a frictionless purchasing experience. One way they achieve this is by storing your credit card information for convenient “one-click” purchases. However, deleting your credit card details creates an extra barrier to impulse shopping, making you less likely to spend unnecessarily.
4: Carry (and use) Cash
Debit and credit cards make spending seamless, leading to easier impulse buying that can hinder your financial goals. Research suggests that people spend less when they carry cash, especially larger bills that are harder to break, like $50s and $100s. Additionally, requesting new bills adds to the reluctance of spending on unnecessary items due to their crispness.