Here are the 6 exceptional money hacks you need to know in order to make smart money moves throughout the new year and beyond.
Two characteristics commonly found in the quintessential motivated individual are:
When it comes to personal finance, they are always looking for a strategy to take their money game to the next level. Their drive will be given a path through the goals that they set. Without a doubt, several good money hacks for the New Year will be part of their consideration.
Hack #1: Bringing it Back to the Old School
Since we all know Americans aren’t good at budgeting, it wouldn’t be a bad idea to implement the old envelope system in the New Year. Sure, it’s a little dated, but it works!
Step 1: Set up a budget for each category of your spending
Step 2: Withdraw money from the bank and insert it into a labeled envelope (i.e., Groceries, Rent, Gas, etc.)
This system will ensure that you don’t go over budget since it’s impossible to overdraft (if you stick to the system.) That being said, some new apps created by the fintech industry may throw a new-age spin on this old model. Fintech is simplifying lives all over the world, and it’s showing through its innovation in personal finance.
Businesses have also seen its effect. Payment solutions, invoicing, and many other aspects have been greatly improved through fintech’s startup scene.
Hack #2: Credit Card Rewards for Everyday Purchases
Believe it or not, there IS free money if you use the right credit card in the correct way. Set up all your bills on auto-pay to the credit card of your choosing. Make sure you’ve chosen a card that rewards you for your everyday purchases. Furthermore, make sure you are getting the rewards you want.
Don’t sign up for a travel rewards card if your goal is to get cash back (this seems obvious, but my goal is to be as clear as possible with you.) The points will add up; it’s only a matter of time.
Remember to pay off the balance each month! Don’t pay unnecessary interest.
Make it a point to get the most out of your credit cards!
Hack #3: Learn How To Negotiate
There’s a lot to learn in the art of negotiation. First off, it can save you A LOT of money. Whether it’s your car or your phone bill, the price is always negotiable. Chris Voss has a lot to say on this topic in his book Never Split the Difference. He is a former FBI negotiator with a ton of real-world experience. This book will lay out common principles we can all take into our daily lives.
Hack #4: Side Hustles
Having trouble finding a couple extra bucks to save in your budget? Side hustles can fix this problem. Most of the time, it takes little or no investment to begin.
Some examples are freelancing, starting a small business related to a passion, moonlighting as a bartender, etc. It can literally be anything, as long as it’s bringing in some extra dollars. It will take some of your personal time away, but sacrificing now for the betterment of your future will pay dividends.
Hack #5: Take Years (and interest) Off of Your Mortgage!
Per Interest.com, there are some strategies to save time and money on your mortgage. One of which is the significant difference in making an extra mortgage payment every year. Their calculations show the following:
If affordable, who wouldn’t take this deal? A side hustle can definitely help in funding that extra check.
Hack #6: Keep More Per Paycheck
You’ll keep more money per paycheck the higher the number you put down.
If you put a -0- and purposely get a refund at the end of the year, you are effectively giving the government an interest-free loan. Remember, they wouldn’t do the same for you.
If you are struggling to find money in your monthly budget, filling out a new Form W-4 form may create some leeway for your finances.
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Source: Black Enterprise