USA edition:
If you're a billionaire: vote Republican.
If you're not a billionaire: vote Democrat.
And either way, you still get to be poor. Great system we have here.
We didn't need that.
Make a budget, each month.
Write down your expected expenses. Keep it simple. Use paper and a calculator.
Rewrite the list, in order of priority, to you.
I've met so many people who are scared to do this, yet would be pleased if they did.
For bills that are due on a regular basis but not monthly (car registration, oil changes, pet’s annual check up, HVAC check ups if you own a home, etc) - figure out how much each costs per year, add them all up, divide by 12, and set up an auto-transfer to a savings account for that amount every month. Don’t forget to include that amount in your monthly budget too.
This x100. I literally never worry about bills anymore.
Inherit your wealth!
Invest in tennis balls. They have a high rate of return.
Serious version. Probably mostly US-centric:
Credit cards are a tool. Just like any other tool, they can be useful or they can cause damage when improperly used. Educate yourself on how to wield a credit card effectively.
Look up how cumulative interest works, then start investing in ETFs or index funds that follow MSCI World or S&P 500 for example. Then wait.
It's been 4 hours. What's supposed to happen?
You're supposed to learn how to check back in a few decades instead of hours.
To add to this, also research ETF and mutual fund fees! Sooooo many are more than willing to charge a "small" 1% fee that will cost you thousands of dollars or more. Others are bold and charge even more. Look for fees in the 0.01% - 0.03% range for your trusty index and targeted retirement funds. Some even have 0%, though those harder to come by.
If you can use credit cards responsibly, look into credit card churning for points. I fly business class for any extended flight and I pay less than what economy would cost.
Absolutely this, people paying cash and with debit cards end up just subsidizing points redemptions. Merchants aren't eating card fees (typically 1.5-3% of a purchase), they just baked it into prices.
With a stable income, watching what you spend, and auto-pay, carrying a card balance is super easy to avoid these days.
If you want to increase your credit score and are financially responsible, switch over to using a credit card.
Diversify your portfolio: Instead of putting everything into savings, split some of it into stocks and shares.
I've heard that they amount you should be putting into your pension is a percent of your income equal to half the age you were when you started saving. Not sure how accurate that is.
If you do happen to be well off and/or have a good job, spend your money on things you like rather than hoarding it.
Donating to charity and supporting small businesses is usually morally correct. If you have the means, tip your instance admin or developers of software you use.
Be careful when buying things that the seller can remove from you at any time. But don't use that as an excuse to not buy things you'll enjoy while you have them.
Have no social life, it's much cheaper.
But in all seriousness, if you have to have a social life, limit your spending on that stuff. Restaurant and bar tabs can add up quickly. Budget, limit your drinking, and if you don't wanna limit your drinking, at least do some cheap drinking at home first.
If your retirement fund isnt 7 figures or larger, you probably aren't going to retire in your own home. "The old folks home" ain't cheap, and they WILL take it all to pay for it.
What if you own your home?
VoIP is cheaper than cell service.
Vinegar is a good cleaning agent.
A hard drive at home is way cheaper than cloud storage.
Tailgating burns more gas.
If you don't touch an account for 7 years, it disappears from your credit report. That means NO ACTIVITY at all. No usage of the card, no payments, no nothing.
There are some debts that this does not apply to, like school loans, but I know it works on credit cards.
Now, here's the real world disclaimer. During those 7 years, your credit will TANK. You will have a hell of a time trying to finance a Happy Meal. If you have good credit, it will take another 5-7 years to get it back to where it was. But, if your credit is already trash, and you can't afford to pay every bill, it is an option that could get you back within your means.
Is it ethical? I figure the system itself isn't ethical, so stealing back from the ones who take advantage of others doesn't bother me one bit, but I totally understand if someone would disagree.
You will have a hell of a time trying to finance a Happy Meal.
I don't know much about finance, but don't do this!
The entire credit system is to keep undesirables from moving into “better” neighborhoods, to keep the po folk in their place - both geographically and socioeconomically.
Before the credit rating system, you better attend the Elks Lodge with your local banker and be an upstanding deacon at your church to get a loan. Being white and having a firm handshake is also a must.
At least the credit rating system is a game we can all play.
You sure about that? I have a friend who thought that too but found out 7 years later that only a bankruptcy will disappear after 7 years, not just idle delinquint accounts. He needed to actually file for bankrupcy to make it go away. This was in Usa, NY; maybe it's different other places.
As a second "data" point: I have some accounts on my credit report that have not been touched in a decade+ yet they are still there (they are not delinquent).
Generally speaking, idle unpaid accounts like this are either sold by the creditors to a third party debt collector, resetting the clock, or they will sue you for the non-payment to get a judgment or lien, resetting the clock.
The only sure bet is bankruptcy, which will drop off your report after a period of time that varies from state to state in the U.S. (generally from 7 to 10 years). Not sure is this applies outside the U.S.
False. New debt collectors purchasing the debt does not reset the clock. Also depending on your state, debt collectors could be barred from legal action well before 7 years.
Edit: in the USA
🤷🏻♂️ Worked for me.
In order to save money, you have to start putting money back, even if you consider yourself too poor to save. Every time you get paid put $X aside and don't touch it until it's enough to do something with
Every luxury takes work to pay for. Even a fancy car for people making well over six figures is a financial ball and chain. Think long and hard about the stuff you buy.
When I was younger, cars were unreliable pieces of shit. I'd never buy a car between four and eight years old, that's when they really started needing work. After that, most dodgy bits had been replaced and rust was the biggest killer.
Now, even cheap cars are astonishingly reliable, and will easily last 20 years if taken care of.
Manufacturers know this,and have spent the last decade convincing people they need to lease a brand new car every three years
They've convinced mugs that cars are a subscription service
Avoid having more than one large loan at at time ($10000 or more). Pay off your loans early by paying to principal. Pay off your credit card(s) every month. Drive slowly to spend less on gas. Buy goods in solid form, no liquids, to save money. Ditch fast foods, do meal prep instead. Eat less meat, like maybe once or twice a week.
Instructions unclear: Dying of dehydration.
Use credit cards as cash, and pay off the balance weekly. This protects your bank account from fraud, as chargebacks and fraud are more easily dealt with on credit, and they tend to have better account monitoring and security than banks and credit unions. Even better if you have a cash-back/points card, that’s basically free money.
This also makes it easy to track spending if you have specific purpose credit cards. E.g, one card for groceries and gas, another for recurring bills or service payments, another for frivolous stuff, etc.
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Even if you have no other investments, open a high yield savings account and keep the bulk of your funds there, other than what you need for a general emergency fund and monthly bills. Current yields are over 4%, generally better than inflation, without any risk.
Budgeting is very important. some people like the 20% of income for saving, 30% for living expenses and the other 50% for everything else. Pre or post tax is up to you as this is a rule of thumb. Important part is that it should be easy for you to build up your savings to cover important expenses. spending 50% of income on housing may be really bad since having back to back years of badluck can screw over your savings, and not give you enough time to save up in between.
This is a general rule that applies when you make enough to do so. If you're struggling to pay rent, do what you can to remove risk and cut down on costs. One thing that helps is aiming to have savings. Often times, its cheaper to have money up front to resolve emergencies rather than later.
Car is one of those things that can make sense to remove. If you're commuting one hour already by car, and there's no public transit option then a car is a necessity. If you can take public transit, that could save you money on car insurance, car payments, car maintenance, and possible accidents.
i don't know anyone who can keep their living expenses at 30%.. is this finance tips for well-off childless people?
We have a credit card that gives 6% cash back on groceries, 3% on gas and some discounts on streaming services. It blows my mind that every few months I can cash out a $200 or so credit towards my balance. I needed to buy those things anyway and have autopay set to the full balance each month so it really is free money. So if you can get one, absolutely a credit card that gives cash back. The one I mentioned is Amex Blue Cash Preferred but there other options out there that give other bonuses, like 2% back on everything or 6% back on something up to a certain cap.
Blows our minds that yanks think they're getting money back from a credit card company, rather than realising they're handing the company extra money every time they use their card, and the company gives them a bit of it back after they've finished with it
Groceries cost the same with or without a credit card. The store is paying the card every transaction, not the user. Annual fee cards need more scrutiny and are often not worth it unless you're playing the travel points game (and what a game it is). No card in existence is worth it unless you pay it off in full every month.
They even have non-cashback/points perks that are worthwhile, like rental car/travel/phone insurance. My family has saved hundreds with free phone insurance from a card. My screen stopped working, and I got a new one for $30 from an authorized repair joint, which otherwise would have cost like $300.
So, yes, cards do give you free money so long as you don't hold a balance.
Not always true? Hell, I have a credit card for 8 years and have-gotten big £ back. I pay £2 for it a month, but if I have two direct debits bank refunds it.
It literally is free money as long as you pay it off each month.
It boggles my mind how people fail to see it. If you're bad in money? It ain't for you. Interest can mount up but it doesn't take that much self control to not blow 5k when you're only taking 3k home.
I really wish there was a personal finance community on Lemmy. Then reading that would be a good lpt.
For me it's a matter of my mentality. I have tried to get away from the spending mentality. As soon as you get money you start thinking of ways to spend it. You should be thinking of ways to save it. I usually try to think of something that is important to me. For me I like to go out and see the world. That means buying gas. If I spend $5 on a cup of coffee that's about 20 mi I can't drive. As others have stated you got all these streaming media sites and stuff. If you add that all up over a years time is quite a bit of money. You should get rid of anything you don't need. There are two ways to have more money: Make more or spend less.
If you can afford this...
...Whenever you're at the store and make a debit card purchase with the option for cash back, get some back. $5, $10, $20...whatever. And put this into a rainy-day fund. You never know when you might need some quick cash or it'd be the make-or-break for a quick splurge.
Granted, I learned of this method from a friend of the family who used this method to hide money from her husband so take it with a grain of salt.
Money is easier to spend than to make.
Got some bad marks on your credit, even a 30-day late ding? Dispute them, even if they're legit.
Americans can request a free credit report every year, from all 3 credit reporting agencies. Mark everything negative as, "wasn't me". The debtor has 30-days to respond, if they don't, fuck 'em, it's off your record.
Worst case? They come back and say the challenge was verified as false. Oh well.
Do not user Klarma-esque services unless it's important. Same with payday loans.
You can use credit cards to build your credit, but your goal should be to pay it off each month. The first month you cannot pay it off in full (sans emergencies), stop using that card until you pay it off.
Bills get paid first. For loans, if possible, try to pay every two weeks to help bring it down faster.
Having a pet is not just getting a buddy, you need to be prepared to take care of them. They cost money and will keep costing money until they pass.
Honestly, check your job's benifits. They hide a lot of stuff sometimes. It was a year into my employment before I realized my job could make monthly payments on student loans. Their payments have saved me in some tight months. 👀
Edit: if you live alone and your place is small (or at least one level) you may want to look into a portable ac, even if you have central air. I take a lot of depression naps so I'm usually in my room, so that's really the only pace I need it. My cat knows where to go when it gets warm and we usually hang out in that room until it gets cooler (of course, if it's bad, I'll turn it on). It's saved me on my electric this year enough to pay for the $160 I got it for (though I was kicking myself because Craigslist had them for cheap).
I had a ~20 paragraph reply on my clipboard but Voyager can't post it.
Edit: pasted it into Gmail instead, then copied it and pasted it again as plain text then copied it again and pasted as a child. Lost all the carriage returns in the process. (it's nearly 4am and I'm using my phone.)
For context, it was written for a small town Facebook group but Facebook also blocked it for breaching community standards so I never published it.
G'day all :) What are your money saving tips? Thought I'd share some of mine in case they're useful. But beware - I'm not qualified to give financial advice! Seek professional advice.
1 - Internet costs. If you get fair mobile reception, and have light to moderate Internet needs, you might find a 4G or 5G service will suffice. Belong has a data sim starting from $15 a month for 20 gigs. If you go over, it'll still work at 1.5Mbps which is slow but still usable if you're patient. On the other end, $70 for 400 gigs is hard to exceed. Aldi has similar offers but with data rollover, but at slightly higher rates than Belong. Depending on your usage patterns, it might be better value. 4G and 5G modems are quite expensive, but you can actually recycle many Telstra NBN smart modems by putting the sim card in them. They sell on ebay for about $50. The local towers have been upgraded but evening slow downs may still occur.
2 - Mobile Plans. Hard to beat Aldi for value in our area. $19 a month is probably all you need if you're not doing a lot of video watching. Most other bargain offerings from Boost, Amaysim have been discontinued. You might know of a better deal? As an aside, smart phones around $300 are now perfectly fine to use with the caveat of mediocre cameras.
3 - Electricity. If it's working, try energymadeeasy.gov.au to compare offers. At the moment Red seems to be one of the best value options but this can change. If you have solar but no battery, consider over-heating or over-cooling your home when the sun is shining. That way you're using your home as a sort-of battery. If you're not home much during sunlight hours, investing in solar might not be worth it at the moment. Upgrading to an induction stove and reverse cycle air-conditioning might be a better investment. Where possible use an air fryer instead of a big oven. An air fryer is just an oven with a stronger fan in it. You can also get a bench top induction hotplate for around $100. These can be great if you're used to cooking with gas, as they are faster and give better control compared to a standard hot plate.
4 - Home and Contents Insurance. Shopping around may be your only option to find good deals. Some insurers won't allow you to under-insure your home. Some, like Honey, will give you a significant discount if you install smart sensors that monitor doors, moisture, temperature.
5 - Car insurance. If you drive old bombs like me, you might only need third party property insurance. You need this in case you obliterate a Mercedes.
6 - Universal insurance. Perhaps my most controversial suggestion. If you have the discipline to do so, consider having savings reserved as an investment which can double as an insurance policy for random stuff like vet bills, breakdowns, etc. If you can't afford private health insurance, this might also cover surgery out of your own pocket. It perhaps sounds counter intuitive, but having savings as a universal insurance policy allows you to use it for whatever need comes up rather than having separate insurances for pet, contents, car, funeral etc. If you think of the money you're putting away as being an insurance premium - which is pretty much what insurance is anyway - it might be easier to understand. It's all a risk of course - a big enough hit could wipe you out so for those things you probably need actual insurance.
7 - Investing. This is largely a follow-on from the above - and you maybe shouldn't be taking advice from a guy who drives old bombs and who is not too far above the tax free threshold! Being diversified is probably wise. Cash under the mattress or in the safe is comforting, but because of inflation, it's effectively stolen from you over time. Things with limited supply such as gold, silver, certain older cars / collectibles may be a hedge against inflation but not guaranteed. Regarding metals, beware of fraudsters. Some cryptocurrencies (which are often speculative assets with an inherent limited supply) may be a good hedge against inflation, but the relative value compared to regular currencies is highly volatile. Stick to the larger Australian exchanges and remember the key phrase 'not your keys, not your crypto'. Also consider the tax reporting requirements. Services like Koinly will take care of that for you at minimal cost. For the a more conventional low risk option, my limited research suggests index funds are one of the safer investment options. Superannuation is probably also good to be aware of, but I'm not up on all the tricks for this other than avoiding having multiple funds. Government co contributions are also a thing. Your bank might have a high interest yielding deposit product that is simple to set up and still gives you easy access. Regional Australia Bank's S30 for example. If you're a home owner, you already have a massive head start at this time - although bubbles are still a risk and you can't exactly sell off bits to do the shopping! I have no experience with investment properties etc so can't speak to that. Likewise, I have no stock market experience.
8 - Cars. Generally, if you maintain your car it'll last a long time. Change the oil at least as often as the manufacturer suggests. Get the transmission serviced as per schedule. Don't trust a 'lifetime transmission' claim though. Lifetime = warranty period. On most cars, changing the oil yourself isn't too difficult and YouTube has guides for most cars. I can't really speak to the reliability and safety of modern cars vs older - that's a choice you'd need to look into yourself. YouTube is handy for this stuff. I'm a bit concerned that some cars are made with an intentionally limited life span. I'm NSW your rego fee is based on weight. A smaller car will cost you less to run and rego, but probably won't be as comfy. As an aside, driving at 80kph uses up to 20% less fuel than 100kph. If you don't have someone behind you and you aren't in a hurry, consider slowing down to save some money. Also, apps like PetrolSpy and NSW Fuelcheck may help you save a little on fuel - but consider your rewards schemes as well as this might change the equation. (bp rewards, flybuys etc.)
9 - Yourself. Keep a little bit active if you can. Use it or lose it is a good rule of thumb. (Although I might have already lost it!) I reckon as long as you get a bit of walking in, that's not a bad effort. A treddy in front of the tele is a good incentive for wet days. You probably should do more, like lifting and stuff, but meh. Try to eat some real food every day. (Fruit and veg.)
10 - Subscriptions. Lots of streaming services competing for your attention. However, all the tv catch up services are free, and so is YouTube. Some will sign up to a service, binge a show, then cancel that subscription. Podcasts are also generally free. A good VPN may allow you to watch the free TV stations from other countries. Useful particular if you've come from another country and miss 'home'.
11 - Vinnies and ADRA etc. Don't need to buy new? The local charity shops have a good range of clothing and occasionally furniture as well.
12 - Heating. Already covered under electricity, but here's some more. The most energy efficient heating is a reverse cycle air conditioner or split system, using under half the power for the same amount of heat compared to any type of electric heater. At temperatures below freezing some brands may struggle. Research before buying, and remember you can always supplement with another heater. All other electric heaters are rated in watts - a 1200w bar heater gives the same heat as a 1200w column heater or a 1200w fan heater. An expensive panel heater will be no warmer than an equivalent fan heater. The only caveat here is that a small bar or halogen heater placed strategically will heat what's in front of it rather than trying to heat the room - so you might be able to get away with just 400 watts under the desk and still be nice and warm while you're there. Gas and wood fires are nice, but unless you have your own supply they are probably the most expensive option. Electric blankets cost a pittance to run.
13 - Computers. Computers generally haven't improved much over the last ten years. If you have a computer that takes ages to wake up but is fast once it's been awake for a while, you might be able to greatly boost its speed by replacing one part only - costing typically $100 to $150 with installation. (An SSD). But if it's randomly turning off for no reason, it's time is probably up.
14 - Groceries Shopping by unit price may save you a lot. In other words, price per kg, price per sheet etc. Most stores have these prices displayed below the item's purchase price. For the local stores in particular, watch for specials. If travelling to Armidale etc, weigh up the fuel costs vs shopping locally. Some shops charge a fee to tap and pay vs insert / swipe / eftpos. You might need to experiment to see which is the cheapest at each store. Or use cash...
15 - Teeth You only need to floss the teeth you want to keep. Xylitol based chewing gums are also great at killing the bacteria that causes tooth rot. Unfortunately Kirk's no longer stocks any. Beware that Xylitol is toxic to dogs.
16 - TVs. Generally speaking, reduce the brightness in order to increase the life. It's usually heat that kills TVs. You can turn almost any TV into a smart TV by adding a ChromeCast for about $60. Also useful if your 'smart' TV isn't as smart as it should be. Side note: Many smart TVs use a technology to report what you're watching back to the manufacturer. If you don't like this, don't connect it to the internet.
Regarding the heating/cooling, if you’re home is decently insulated look into supercooling in the summer months. At higher temperatures your heat pump has to work harder to cool down the home. By running cooling overnight when temperatures are lower, it uses less power to the same result.
I cool my home to 68f from 2 am until 8 am on a schedule, and then the heat pump stays off until the indoor temps reach 74f. It’s provided a good amount of energy savings and helped me exceed the quoted power offset on my solar setup.
Pile as much money as you can, as often as you can, into VTSMX or VTSAX and chill.
- Save first. If you aren't living paycheck to paycheck, then always put your money in a separated bank account for saving.
This help eliminating the need to keeping track of your spending.
- If you tend to be fined for overdraft, then use an overdraft protection service. The service fee is much lower than the OD fee.
No income taxes(up to 120k) if you live outside of the US most of the year.
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Spend less than you earn. Earning interest is better than paying interest.
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Debt can be good if used wisely. I took on debt to buy an apartment that saved me money due to cutting commute costs more than interest costs.
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Think long term.
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"Prevention > Cure" and "investment in you and the things you use most will pay dividends in terms of health, money, and mobility" is the very TL;DR version.
If you're in a country with an asinine healthcare system like the US, it's definitely prudent to take care of your health rather than being caught out by something. This includes regular dental check-ups and cleaning (trust me).
You spend a lot of time sleeping. A good mattress and linens are very valuable to your health.
If you are on your feet a lot, comfortable should also be a priority even if they cost more.
Work out to your ability. Being sedentary is detrimental to your health and causes pain (both physical and financial).
Try to save and buy better quality versions of things where it makes sense. If you only spend $10 on something but it lasts only a year, it's better to spend $30 or $50 on something that lasts you ten years or a lifetime.
Remember that investments can take many forms and pay out differently. Investing in your health is already mentioned, but invest in your education. If you don't have money, you can still find tons of free resources online or at the library to skill up in ways that help your life (either your job prospects, your home life, or even your mental well-being).
And, perhaps more importantly than most other advise, live within your means.
I realize that not all of these are possible to everyone all the time (I was homeless for a while; I understand). These are goals and any progress is worth it; do not let perfect be the enemy of good.
