Have you ever wanted something really badly, then looked at your bank account and thought, “Dang, I really need to start saving up”? You’re not alone – money is so easy to spend yet can be hard to save in a city where everything nice comes at a price. Here are 5 life-changing tips to revolutionize your money management.
1 – Open a Savings Account NOW
The first and most important thing you can do to start working on a healthy financial routine is to open up a savings account. While many people think it’s pointless to separate your funds into separate accounts and much more satisfying to see it all in one place, there are significant practical and psychological reasons to open a separate account that’s solely for savings. When you have all your money in your personal account, it’s easy to spend it all without a limit on impulse purchases from your credit card as purchases made with your bank card all come out from your personal account. However, if most of your money is put away safely in your savings account, you are physically unable to spend into your savings without having to transfer money to your personal.
The process of transferring money itself is a deterrent in that it’s an inconvenience and you’re made to be more aware of how much of your hard-earned money you’re losing on this purchase decision. Another important tip that many people disregard is leaving a portion of your money in your personal account for anything you might need or want to purchase. Just like dieting, if you’re unfairly strict with yourself, it can be hard to maintain the healthy new habit and you will tempted to eventually give up. The best method to built your savings while keeping enough spendable money is to set a percentage or amount that you will put into your savings account every time you have funds coming in from a pay check or any other income.
Personally, I lead a pretty frugal lifestyle save for my obsession with collectibles, so I put money away into my savings every time it reaches a thousand dollars. For example, if I get a pay check of $4,750, I will transfer the $4,000 into my savings and keep the $750 in my personal account for anything I might want to buy. As I’ve been told by friends who I’ve shared my financial routines with that it’s unnecessarily strict, putting away every $1000 you earn isn’t for everyone. A more moderate and reasonable system would be to tax around 75% of your income to your savings account, but adjust the percentage according to your financial needs and lifestyle.
2 – Do Your Research – It Goes A Long Way!!
This is something you will hear from teachers, financial advisors, or anyone with experience in adulting – take the time to research your options for any major decisions and purchases you plan to make. A bit of legwork can make all the difference when you’re trying to save up, and you will save yourself and anyone you know who may need help a lot of trouble in the future. Did you know that Eclipse Towers has cheaper rental fees for their apartment units than other apartments in the city? We didn’t know that until we visited every apartment complex in the city and inquired about their monthly rates, and now you know too!!
As for investments, seek advice from people with experience in the market that you’re looking to get into before making any deals or commitments. In the beginning, it can be painfully easy to make the wrong decisions or get scammed by those who prey on sparkly-eyed investors who don’t quite know what they’re doing just yet. Most of the time, these mistakes can be especially costly and debilitating to your funds in the beginning and can discourage you from getting back up and trying again, so play it safe and start small. Asking around if anyone has something you want to buy for sale can net you a sweet discount, as second hand items like collectibles and cars often go for much cheaper than if you were to buy them brand new. Sometimes, you will find that the person trying to sell the item doesn’t know it’s value or just wants to get rid of it for quick cash. One man’s trash is another’s treasure, as Trailer Trash Panda would say!!
3 – Go For Quality, not Quantity
A happy, healthy, and satisfactory life isn’t all about that glitz and glamour. There is a widespread culture in this city as well as many other places in the world where people view monetary value of things like houses, cars, and clothing as hallmarks of success. While those things can sometimes be really cool and add something new and exciting to your life, it can be worthwhile to consider the practicality of a big purchase in the long term. For example, you might have enough to buy a really flashy car for 200k, but investing in a cheaper car with the same features you’re looking for not only saves you money on the initial purchase but in the future as repair costs for expensive cars are ridiculous and often not worth the 10 minutes you spent enjoying your car before it got wrecked.
I have met many people around the city who have expensive cars they regret buying because the upgrade costs alone are more than they would’ve spent on a similar but far more cheaper and practical car in its entirety, or they’re too afraid to take it out for a ride because they dread the imminent hefty repair bills. Don’t fall into that trap and invest in the best you can get for your hard-earned money, you deserve it!!
4 – Say No To The Casi-no
Let’s be honest, 99% of people leave the casino poorer than they were when they walked in. While it may be fun to try your luck at blackjack or the roulette table with whatever’s in your pocket from time to time, gambling can often develop into a crippling addiction that drains not only your wallet but your quality of life. Chances are, you’ll win a small amount of money and be tempted to go all in to see if you can do it again and double the zeros in your bank account and make it big. The prospect of becoming a millionaire within seconds is exhilarating, but the reality is that few people ever make back what they spend at the casino, and if they do win big, the profit is far less than it seems. There’s nothing wrong with the occasional visit with friends to have fun with pocket change, but be sure to keep track of your expenses and not get dragged into the biggest money sinkhole in the city.
5 – Consider Starting Your Own Business
While starting up and managing a business of your own can seem daunting, it’s a lot simpler than it seems and can prove very profitable if you do it right. Recently, the guide to getting a business license has been updated to be even clearer and simpler for anyone without prior experience to understand, so it’s a good time to start looking around and think about what’s missing from the city and how you can swoop in and satisfy that void with a business of your own. While some types like restaurants, gun stores, or other specialty licenses and locations can be harder to obtain than others, it can be worthwhile to keep up to date with news from DoCL regarding applications from them, as well as word of mouth around the city, such as if someone is looking to sell their restaurant or bar.
Initial investments such as advertisement, import fees, and monthly fees can seem burdensome, but keep in mind that not everything has to be done at once and over time, your business will not only pay for itself but net you a lot of profit if you play your cards right. Depending on the type of business you have, additions like yard work, custom clothing, an interior, or more company vehicles can always be implemented along the way as your company grows. You can also save money on smaller investments like logos and advertising by designing them yourself or asking a friend with talent for graphic design. Reaching out to collaborate with other businesses for events or more products or services is also very important to begin building connections in the business world and appeal to a wider range of customers.
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