Save more, spend smarter, and make your money go further
Does it pay to be Internet savvy? Yes. In more ways than many people imagine. Sure, the Internet is a great way to research just about anything you could ever want to know about; and it’s an outstanding communication, marketing, and entertainment tool. But the Internet can also save you money. And we’re not just talking 10 cents off here and there. We’re talking free (and nearly free) stuff.
Want proof? Below, we’re diving into some of the best places you can find free or heavily discounted items. Keep reading for a comprehensive explanation or use the navigation links below to learn more about a specific tip.
Use Online Community Marketplaces
Looking for a computer desk? How about a sofa, kids’ toys, electronics, office supplies, landscaping materials, or lumber? These are just a few of the hundreds of items listed in a single day in almost any city’s Craigslist free section. People are generally honest about the condition of the stuff they’re listing, and many have pictures, so you can see for yourself.
If you’re a “Mr./Ms. Fix-It” type, you’ll be in heaven. But even if you aren’t, you’ll be surprised at the kinds of things people are giving away. Look for the FREE listings under the “For Sale” section of your local Craigslist board.
Much like Craigslist, Freecycle is another site powered by the people and rooted in a belief that it is better to give items a second life, rather than filling up landfills and creating more stuff. Folks can list anything they have to give away, and others can browse the goods to find what they want. And, like Craigslist, you’ll find a ton of great free stuff through Freecycle.
Unlike Craigslist, Freecycle is run through local networks. This makes it a little more of a process to find and list items, but the advantage of this process is that it’s moderated, and people can communicate with the community at large. This reduces the likelihood of people listing garbage and describing it as treasure.
Besides those two websites, you can also look at Facebook neighborhood groups, Facebook marketplace, OfferUp, and other apps or websites where people are looking to offload whatever has accumulated in their garage.
Get Free Samples
Companies want you to take samples so that you’ll be incentivized to buy the full-sized product at a later point. Department stores and wholesale clubs offer samples in person. But if you can’t find samples, you can simply request samples from companies online.
Amazon Prime members can even buy sample boxes and get reimbursed with Amazon credit.
Costco and Sam’s Club are, of course, famous for their samples. And Trader Joe’s often opens some of its products for sampling purposes as well.
Use Coupons
Coupons are a great way to not only get free stuff but also to get serious deals. They might be “old-fashioned” but you may be surprised by the savings with coupons. Besides coupons from stores or brands, there are also online databases like RetailMeNot, Honey, and Coupons.com. RetailMeNot and Honey even have helpful Chrome extensions that automatically scans potential discount codes when you’re on the checkout page for an online store. In turn, you get the peace of mind that you’re getting the best discount possible.
Try Using Your Library Card
Books are already a wonderful free perk that libraries provide, assuming that you don’t rack up fees from forgetting to turn in your books on time. However, with a valid library card, you can also get access to different entertainment and education options as well. You might be able to see movies, rent games, check out audiobooks, attend community classes, receive free or discounted museum passes, and more. Visit your local library to see what free library services it offers.
Pay Attention to Discounts
If you fall into a certain category like student, healthcare provider, teacher, first responder, senior, military, or senior, there’s a good chance that you’ll get a discount at certain establishments. It never hurts to ask! In addition, it’s also a good idea to ask about any coupons that are available at retail stores. In many cases, retail workers will scan a coupon for you on your behalf — so make sure you’re nice!
Enroll in Loyalty Programs and Newsletters
It’s a lot less expensive for companies to retain old customers than it is to get a new one. For that reason, companies often invite you to join loyalty programs. These programs often give you special perks. For example, many stores will give you a birthday gift that might be a special discount, merchandise, gift cards, or free food.
The same idea can be applied to newsletters. You’ll often get a nice discount when you sign up for a company’s newsletter. And remember, you can always unsubscribe if your inbox is getting too full.
Takeaways: Getting Free Stuff
Does it pay to be a bit of a geek and figure out how to get free stuff? You bet it does. So, get your geek on, and fire up the laptop and get some freebies. And don’t forget, it never hurts to ask if you can get a discount if you’re at a store. The worst that can happen is they say, “No.”
If you have other examples of sites you use to get free or nearly free stuff, we’d love for you to share them in the comments section. Want to make the most of your money? Check out our article on how to become a better saver.
Matthew Toren is a serial entrepreneur (Co-founded YoungEntrepreneur.com), mentor, investor and award winning Co-Author of Kidpreneurs (Basic Principles of Entrepreneurship for Kids). He owns Blogtrepreneur.com and writes for Contently.com.
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Save more, spend smarter, and make your money go further
When it comes to saving for the future, the most commonly asked questions are “what funds should I choose for my 401(k) or IRA?” and “how much should I save per month?”. If you’re like most people, you likely zero your focus in on the former. However, in the grand scheme of things, shifting your focus to how much money you should be saving per month is the smarter, more efficient way to build your funds.
Every month, some money is added to (or subtracted from) your 401(k) or IRA due to factors beyond your control. Your stocks go up or down. A bond fund pays a dividend. In short, market stuff happens and with every month, you add some money to your account. If the amount of money you add is bigger than the effect of the market fluctuations, then your savings rate becomes significantly more important than your investment performance.
What is the savings rate?
Your savings rate is the amount of money you save every month expressed as a percentage or ratio of your overall (gross) income. The higher the savings rate, the more money you save per month. Your savings rate is often regarded as one of the most critical elements of your long-term financial planning. It’s also one of the few factors you can directly influence by making strategic choices. Ultimately, your personal savings rate can be one of the most telling percentages to account for when assessing your retirement savings success.
According to a 2005 Federal Reserve data report, the U.S. personal savings rate hovered between 2.5 and 3%. This rate is alarmingly low and indicates that it could take nearly 40 years of saving to equate one year of living savings in retirement. This past national average also signals back to the previous point— in 2005, more people were focused on building their retirement accounts than actually stashing away disposable income for future planning.
How to calculate your savings rate
Using the savings rate formula is a simple three-step process:
Add up net savings
This should include all non-retirement savings and your retirement savings for the year (including employer retirement contributions). This number could very well end up being negative if you had net debt rather than net savings for the allotted time period. For example, taking a withdrawal from any savings account or taking a loan from a savings account would be a reduction against anything you saved.
Calculate total income
Add your total take home pay plus any pre-tax savings (including employer contributions).
Divide total net savings by total income
Take your total net savings from Step 1 and divide it by your total income in Step 2. Multiply the outcome number by 100 to convert it to a percentage.
Example: You make $50,000 a year and you save $5,000 to your 401K. You had to withdraw $1,000 from your Roth IRA earlier in the year to pay for an unexpected expense but you added $500 back to your Roth IRA by the end of the year. Your employer also contributes $2,500 to your 401K for you.
Your net savings is:
$5000-1000+500+2500 = $7,000
Your total income is:
$50000+5000+2500 = $57,500
Your Savings Rate is:
$7000/57500 = 0.1217
0.1217*100 = 12.17%
What influences the savings rate?
From the state of the economy and fluctuations in market interest to age and wealth, there are a number of different factors that directly influence the savings rate.
Economic factors, such as economic stability and personal earnings, are critical for the calculation of savings rates. Intervals of extreme economic volatility, such as recessions and global crises, typically lead to a rise in investment as consumers minimize their usual spending habits in order to brace for an unpredictable future. However, on the opposite end, periods of exponential economic growth can also build optimism and trust that stimulates a comparatively higher percentage of consumption.
Income and wealth significantly affect the savings rate because there is a positive correlation between the per capita gross domestic product (GDP) and savings. Generally speaking, low-income households tend to spend the majority of their income on everyday essentials and needs as opposed to wealthier people who can afford to stash away regular portions of their income toward saving for the future.
Shifts in market interest can also have an impact on the savings rate. Higher interest rates may lead to lower average spending and higher investment levels. This is a result of the substitution effect— being able to spend more in the future outweighs the revenue effect of retaining existing income earned from interest payments for most households.
Personal savings rate example
To give a more concrete understanding of personal savings rate, let’s use a real-life example to better illuminate the purpose and meaning of this percentage. Say there are two people who work at the same job with exactly the same pay. One saves 5% and earns 10% annual returns while the other saves 10% and earns 5% annual returns. Based on the personal savings rate calculation, it will take over 25 years for the employee with the 10% return to come out ahead.
There are two key lessons here you can take away. First: on your first day of work, immediately save 10% of your gross pay and keep doing so forever. Mathematically, if you are employed and working for 45 years starting at age 20 and you consistently stash away 10% of your income, you’ll end up with enough money to retire comfortably.
The second lesson: if you hit the middle of your career and are still making avoidable investment mistakes like market timing, day trading, and performance chasing, consider changing your strategy. It’s a much more worthwhile venture to learn how to diversify your portfolio and keep costs and risk as low as possible to properly build a financially stable future.
How to increase your savings rate
Bolstering your savings rate is primarily about strategic budgeting, but there are a number of different elements to consider when creating a plan to improve your personal savings rate. Use the tips below to get a head start on building your savings rate.
Tip #1: Cut your spending
It’s vital to examine your current budget and evaluate the areas in which you may be able to cut costs. Identifying these places where you can eliminate ensures that you have ample opportunity to dedicate more of your monthly income toward savings. Every dollar counts, so when going through your budget, be meticulous and intentional about any spending shifts to maximize your saving potential.
Tip #2: Increase your income
The best way to save more money is by making more money. Though that is far simpler said than done, there are a few easy ways you can increase your income without making any significant changes to your existing lifestyle.
Consider the following:
Tip #3: Automate your savings
Instead of depending on yourself to remember to stash away a certain amount of money toward your savings account, introduce yourself to automated saving. One of the simplest ways to do this is by setting up automatic recurring transfers. The moment you get paid, a specified amount of cash will transfer into your savings account, no manual switching needed.
What about investments?
How many people do you know who started saving for retirement at age 20 and haven’t been unemployed, or taken a 401(k) loan, or gone off to India in search of themselves, before they hit age 65? In their 2011 retirement confidence survey, the Employee Benefit Research Institute found that 70 percent of Americans believe they are “a little” or “a lot” behind schedule. The best thing we can do to increase our retirement nest egg is to (snooze alert) save more and spend less. In attempting to do so, many turn to making various investment choices.
Investment choices are undoubtedly important, especially once you’ve accumulated a sizable chunk of savings. It can be fun, scary, and mysterious, and with the chance of earning a huge amount of money if you play your cards right, investing is downright attractive. But it goes without saying that making money is a lot more alluring than saving money. And that’s exactly why it’s so important.
By focusing on bettering your personal savings rate, you’ll enjoy the long-term benefits without any risk or chance involved. By stashing away disposable income for future planning, you can effectively escape the game of chance and gain the assurance you need in growing your own savings on your own terms. Also, money makes money – the more invested, the more you will make.
The silver lining of saving more
Last question: is it better for your 401(k) balance to go up because you’re saving more or because your investments are performing well? Or does it matter?
It matters. Improving your balance by saving more is better. Once you retire, you’ll be using your savings to pay expenses. The lower your expenses before retirement, the easier it will be to cover them from your nest egg. And when your savings rate goes up, your expenses (as a percentage of your pay) have to go down, right? Or, you can just increase your savings rate each time you get a raise to cover the difference.
Maybe the secret of a comfortable retirement isn’t about savings rate or investment performance: it’s about redefining “comfortable.”
Matthew Amster-Burton is a personal finance columnist at Mint.com. Find him on Twitter @Mint_Mamster.
Save more, spend smarter, and make your money go further
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Save more, spend smarter, and make your money go further
When it comes to saving for the future, the most commonly asked questions are “what funds should I choose for my 401(k) or IRA?” and “how much should I save per month?”. If you’re like most people, you likely zero your focus in on the former. However, in the grand scheme of things, shifting your focus to how much money you should be saving per month is the smarter, more efficient way to build your funds.
Every month, some money is added to (or subtracted from) your 401(k) or IRA due to factors beyond your control. Your stocks go up or down. A bond fund pays a dividend. In short, market stuff happens and with every month, you add some money to your account. If the amount of money you add is bigger than the effect of the market fluctuations, then your savings rate becomes significantly more important than your investment performance.
What is the savings rate?
Your savings rate is the amount of money you save every month expressed as a percentage or ratio of your overall (gross) income. The higher the savings rate, the more money you save per month. Your savings rate is often regarded as one of the most critical elements of your long-term financial planning. It’s also one of the few factors you can directly influence by making strategic choices. Ultimately, your personal savings rate can be one of the most telling percentages to account for when assessing your retirement savings success.
According to a 2005 Federal Reserve data report, the U.S. personal savings rate hovered between 2.5 and 3%. This rate is alarmingly low and indicates that it could take nearly 40 years of saving to equate one year of living savings in retirement. This past national average also signals back to the previous point— in 2005, more people were focused on building their retirement accounts than actually stashing away disposable income for future planning.
How to calculate your savings rate
Using the savings rate formula is a simple three-step process:
Add up net savings
This should include all non-retirement savings and your retirement savings for the year (including employer retirement contributions). This number could very well end up being negative if you had net debt rather than net savings for the allotted time period. For example, taking a withdrawal from any savings account or taking a loan from a savings account would be a reduction against anything you saved.
Calculate total income
Add your total take home pay plus any pre-tax savings (including employer contributions).
Divide total net savings by total income
Take your total net savings from Step 1 and divide it by your total income in Step 2. Multiply the outcome number by 100 to convert it to a percentage.
Example: You make $50,000 a year and you save $5,000 to your 401K. You had to withdraw $1,000 from your Roth IRA earlier in the year to pay for an unexpected expense but you added $500 back to your Roth IRA by the end of the year. Your employer also contributes $2,500 to your 401K for you.
Your net savings is:
$5000-1000+500+2500 = $7,000
Your total income is:
$50000+5000+2500 = $57,500
Your Savings Rate is:
$7000/57500 = 0.1217
0.1217*100 = 12.17%
What influences the savings rate?
From the state of the economy and fluctuations in market interest to age and wealth, there are a number of different factors that directly influence the savings rate.
Economic factors, such as economic stability and personal earnings, are critical for the calculation of savings rates. Intervals of extreme economic volatility, such as recessions and global crises, typically lead to a rise in investment as consumers minimize their usual spending habits in order to brace for an unpredictable future. However, on the opposite end, periods of exponential economic growth can also build optimism and trust that stimulates a comparatively higher percentage of consumption.
Income and wealth significantly affect the savings rate because there is a positive correlation between the per capita gross domestic product (GDP) and savings. Generally speaking, low-income households tend to spend the majority of their income on everyday essentials and needs as opposed to wealthier people who can afford to stash away regular portions of their income toward saving for the future.
Shifts in market interest can also have an impact on the savings rate. Higher interest rates may lead to lower average spending and higher investment levels. This is a result of the substitution effect— being able to spend more in the future outweighs the revenue effect of retaining existing income earned from interest payments for most households.
Personal savings rate example
To give a more concrete understanding of personal savings rate, let’s use a real-life example to better illuminate the purpose and meaning of this percentage. Say there are two people who work at the same job with exactly the same pay. One saves 5% and earns 10% annual returns while the other saves 10% and earns 5% annual returns. Based on the personal savings rate calculation, it will take over 25 years for the employee with the 10% return to come out ahead.
There are two key lessons here you can take away. First: on your first day of work, immediately save 10% of your gross pay and keep doing so forever. Mathematically, if you are employed and working for 45 years starting at age 20 and you consistently stash away 10% of your income, you’ll end up with enough money to retire comfortably.
The second lesson: if you hit the middle of your career and are still making avoidable investment mistakes like market timing, day trading, and performance chasing, consider changing your strategy. It’s a much more worthwhile venture to learn how to diversify your portfolio and keep costs and risk as low as possible to properly build a financially stable future.
How to increase your savings rate
Bolstering your savings rate is primarily about strategic budgeting, but there are a number of different elements to consider when creating a plan to improve your personal savings rate. Use the tips below to get a head start on building your savings rate.
Tip #1: Cut your spending
It’s vital to examine your current budget and evaluate the areas in which you may be able to cut costs. Identifying these places where you can eliminate ensures that you have ample opportunity to dedicate more of your monthly income toward savings. Every dollar counts, so when going through your budget, be meticulous and intentional about any spending shifts to maximize your saving potential.
Tip #2: Increase your income
The best way to save more money is by making more money. Though that is far simpler said than done, there are a few easy ways you can increase your income without making any significant changes to your existing lifestyle.
Consider the following:
Tip #3: Automate your savings
Instead of depending on yourself to remember to stash away a certain amount of money toward your savings account, introduce yourself to automated saving. One of the simplest ways to do this is by setting up automatic recurring transfers. The moment you get paid, a specified amount of cash will transfer into your savings account, no manual switching needed.
What about investments?
How many people do you know who started saving for retirement at age 20 and haven’t been unemployed, or taken a 401(k) loan, or gone off to India in search of themselves, before they hit age 65? In their 2011 retirement confidence survey, the Employee Benefit Research Institute found that 70 percent of Americans believe they are “a little” or “a lot” behind schedule. The best thing we can do to increase our retirement nest egg is to (snooze alert) save more and spend less. In attempting to do so, many turn to making various investment choices.
Investment choices are undoubtedly important, especially once you’ve accumulated a sizable chunk of savings. It can be fun, scary, and mysterious, and with the chance of earning a huge amount of money if you play your cards right, investing is downright attractive. But it goes without saying that making money is a lot more alluring than saving money. And that’s exactly why it’s so important.
By focusing on bettering your personal savings rate, you’ll enjoy the long-term benefits without any risk or chance involved. By stashing away disposable income for future planning, you can effectively escape the game of chance and gain the assurance you need in growing your own savings on your own terms. Also, money makes money – the more invested, the more you will make.
The silver lining of saving more
Last question: is it better for your 401(k) balance to go up because you’re saving more or because your investments are performing well? Or does it matter?
It matters. Improving your balance by saving more is better. Once you retire, you’ll be using your savings to pay expenses. The lower your expenses before retirement, the easier it will be to cover them from your nest egg. And when your savings rate goes up, your expenses (as a percentage of your pay) have to go down, right? Or, you can just increase your savings rate each time you get a raise to cover the difference.
Maybe the secret of a comfortable retirement isn’t about savings rate or investment performance: it’s about redefining “comfortable.”
Matthew Amster-Burton is a personal finance columnist at Mint.com. Find him on Twitter @Mint_Mamster.
Save more, spend smarter, and make your money go further
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The Complete Guide to Teaching Kids About Money – MintLife Blog
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$400 emergency, and a third have saved nothing for retirement. Meanwhile, more than 60 percent of young adults under 34 say that thinking about their personal finances makes them anxious.
In many cases, these young adults feel anxious about their finances because they never learned about money growing up. Fewer than 20 states require high school students to take personal finance classes, even as studies show that young Americans want to learn about money and wish they had learned to be more financially savvy in school.
That’s where you come in. Giving your kids real-world lessons at home on how to manage their finances will go a long way toward helping them stockpile plenty of savings, stay out of debt and maintain healthy credit scores.
Read on to learn the critical money lessons you should teach your kids at every age, from their toddler years to their teen years.
Table of Contents
Start With Yourself: Be a Good Example
Smoking. Drugs. Bullying. All of these are topics that parents say they would rather discuss with their kids than the family’s finances.
Maybe you have struggled with using money responsibly in the past. Maybe you don’t want to tell your kids how much you make or reveal that you’re in debt. But it’s important that you become comfortable with talking to your kids about money so that they become comfortable using it.
Brush Up on Basic Financial Concepts
Pop quiz! If you take out a loan for $1,000 with a 20 percent interest rate, how much will you owe per year in interest?
The answer is $200. Did you know that? If not, you’re like almost two-thirds of Americans who have trouble calculating interest rates.
Take some time to brush up on basic financial concepts. Make sure you understand these topics inside and out so that you can answer your kids’ questions and provide the most well-rounded lessons possible.
Get Out of Debt
Every good lesson in using money responsibly starts with reducing or eliminating debt. More than family’s finances and get on the same page. This way, you can better understand your family’s financial goals and communicate them with your kids.
It’s also helpful to write down your family’s financial goals and display them in a prominent place in the home. For example, if your family wants to go on vacation later in the year, you could post that goal on the refrigerator to remind everyone why the family is saving.
Protect Your Kids
Another important component of putting your kids on the best financial track possible is thinking about what would happen if you could no longer take care of them.
Even though most Americans have life insurance, a good chunk do not have enough coverage. About half of Americans have $100,000 or less in coverage. It’s recommended that you have coverage equal to at least 10 times your salary. With kids, that multiplier should typically be even higher.
Also, make sure you have a will to ensure that your assets are properly divided and that your kids are cared for should something happen to you.
Younger Than 3
At this age, your kids likely just learned how to throw a ball overhand or to scribble freely on paper. They have no idea what money is or how it works — but that doesn’t mean you can’t introduce them to some basic money concepts.
Allow them to play with coins. Play store to introduce them to the concept of a marketplace. Even allow them to watch you pay bills. This helps them understand that money has a value and that items vary in cost.
Coin Identification Game
Show your toddlers different types of coins. Allow them to trace the outlines of the coins onto a piece of paper. As you color in the shapes that you traced, help them to match the coins to the drawings and repeat the coins’ names.
Coins are more fun for toddlers to play with than paper money, but you can also draw dollar bills and color those in to include in your toddlers’ homemade “wallets.”
The Play Store
Using the pretend money that you created from the coin identification game, gather a bunch of household items and allow your toddler to exchange the money for the items.
Kids already love playing store for the fun of it, but take this opportunity to show them that different items require different types of pretend money. For a twist on the traditional game, decorate price tags and attach them to the items.
Toy Calculator and Checkbook
Toddlers are always watching you, so why not use that to help them learn about money? When you’re paying bills with your checkbook and calculator, let them know that you’re buying things just like they do when they play store.
For even more fun for your toddlers, give them their own “checkbook” and calculator to play with while they watch you.
Ages 3 to 5
By kindergarten and pre-kindergarten, your kids have already seen you give something green to the pizza delivery driver or put down a piece of plastic on the table at the end of your dinner at a restaurant.
It’s your job to answer their questions and explain to them that they need money to buy things. As they reach school age, you can even allow them to manage a little bit of money on their own by way of allowances.
It’s up to you whether the allowance should be earned or given, but the important thing here is to teach your kids to save and to help them understand that they may need to wait before they can buy something.
Saving, Spending, and Sharing Jars
Gather three clear jars and ask your kids to decorate labels with “saving,” “spending,” and “sharing” for the jars. Piggy banks are great, but you can’t see what you’re putting in them, and you want your kids to be able to see the progress they’re making!
Explain that everything costs money. The money in the “spending” jar can be used today to buy anything your kids want within reason. If they want something that is more expensive, they will have to wait until their “saving” jar has enough money in it.
You can also encourage your children to put a couple of coins or a dollar bill or two in the “sharing” jar, and help them think of charities for the money.
Needs vs. Wants Shopping
Let’s say your kids want a $10 stuffed animal. Help them count out $10 from their jars. Have them take the $10 to the store and hand the coins and bills to the cashier. Allow them to see how much money is left in the jars, and explain to them that if they spend money this time, they’ll have to wait a little bit before they can buy something again.
If they don’t have enough money in the jars, help them understand how much they have and how long it will take to save enough for the stuffed animal given their current savings rate.
Imaginary Restaurant
What kids don’t like to play restaurant? At the end of the game, remind them that they can’t leave the table without “paying” the bill.
This is also a good opportunity to introduce your kids to the relative value of coins and bills. Show them that one-dollar bill equals ten dimes or four quarters.
Ages 6 to 10
While teaching kids about money is critical at every age, this age group is especially important. Researchers believe that kids’ money habits are formed by the time they turn seven.
Give them a firm foundation in protecting their money in savings accounts (and earning interest), shopping around for the best deals and understanding the different ways that money can be spent or shared.
Opening a Savings Account
Take your kids with you to the bank. Explain to them that putting your money in a bank is better than stockpiling money at home because a bank protects your money and pays you interest.
Explain that the bank pays you interest as a reward for keeping your money in that bank, instead of at another bank. Also, explain that interest is a cool concept because it keeps growing the longer you keep your money in the bank.
You can illustrate this concept by asking your kids to set aside $1 from their allowance. Tell them you’ll act like the bank and pay them 10 percent, or a dime, in interest for this $1. They’ll now have $1.10. Explain to your kids that you’ll pay interest on this $1.10 in a month and that they’ll receive 11 cents instead of just a dime. Allow them to see how interest keeps adding up!
Coupons and Comparing Prices
It’s surprising how much your kids can learn about money at the grocery store! If you use coupons, ask your children to help you clip them and identify the corresponding products at the store. Make sure they watch as the cashier scans the coupons and shaves dollars off your bill.
Additionally, look closely at the unit prices of products. Ask your kids to help you determine which products offer a better deal (a lower price per ounce, for example). This is also a good opportunity for your kids to practice their basic math skills.
Career Exploration
It’s important for kids to know that money is not just spent on physical goods, like food and toys. Explain to them that money is also spent on services, like labor. This is a good time for you to tell them what you do to make money and encourage them to start thinking about what they might want to do when they grow up.
Charitable Giving
Since many of your kids’ money habits will be formed during this time, make sure to explain the importance of giving back to their communities and to those in need. You’ll want to tell your kids that they are part of a larger community and that everyone in the community is responsible for those around them. This includes a responsibility to give your time and some of your money to community causes.
Help them connect with a cause they might care about, like a local animal shelter that rescues stray cats or an environmental group that plants trees in the local park and explain that they can give some of their money to help others. Helping them to understand that not everyone has the money they need will help them appreciate their money and grow to be more giving adults.
Ages 11 to 13
Your kids have already opened savings accounts and have seen how money seems to show up out of nowhere. It’s time to explain how compound interest works and explore other places to store your money. They also can begin to learn more about the worth of objects around them.
Exploring Compound Interest
Finally! You get to share the wonders of compound interest with your kids. Play around with a couple of classic examples that show that savings can really add up, but only if you start saving early.
For example, if they save $100 every year starting at 14, they’ll have $23,000 when they’re 65, but only $7,000 if they start saving when they’re 35.
Encourage them to play with an online compound interest calculator that allows them to input the specifics of their bank accounts and play around with different time periods and interest rates.
Investment Games
Show your kids that you can store your money in other ways that could make you more money than a traditional savings account. However, be careful to warn about the risks of losing more as well.
Have your kids pick out a couple stocks that relate to their favorite hobbies. Track how the stocks perform every week for a given amount of time and award a prize (maybe a pizza dinner or a movie night) to the winner.
Yard Sales
Your kids should have a pretty good grasp on how to value different objects already, but allow them to develop these skills even further with a yard sale (and clean out your basement in the meantime).
Put them in charge of planning the yard sale, finding things to sell, setting the prices, and interacting with customers.
Ages 14 to 18
By this point, you’ve helped your kids learn about money for more than a decade. Now it’s time for them to start working and thinking about college before they eventually go off on their own.
Be prepared to answer many questions during this time, as there are many essential financial You’ll need to cover everything from paychecks to checking accounts, credit cards, and social security.
Breaking Down the Paycheck
As your kids earn their first paychecks, they might not like what they see. The total might not match the amount they had banked on earning. Now’s a good time to explain taxes.
Explain the different types of taxes to them and show them where the taxes go, whether it’s to Social Security or Medicare or elsewhere. Also emphasize the importance of saving and encourage them to open an individual retirement account.
Perhaps your daughter or son will want to make some extra cash. Encourage them to be resourceful and help them look for opportunities like babysitting or selling old clothes.
Debit Cards
Before your kids head off to college and eventually open their own checking accounts, they might want some practice at home. Consider opening a joint account with your kids to give them access to a bit of money. You can monitor their spending using online apps and ensure that they’re making healthy financial decisions.
Their names can also be on the checks associated with the account. Take this opportunity to teach them about writing checks and balancing checkbooks.
Credit Cards
Kids can’t enter into legally binding contracts, such as credit card agreements until they are 18. One way around this is to add your kids as authorized cardholders under certain circumstances.
Whether or not you give your kids access to your credit cards at this point, you must teach them to use credit cards responsibly. Explain that they should use a credit card only if they can pay off the monthly payment in full. Talk about the dangers of debt and how missed payments decrease credit scores and make it harder to secure loans.
Finally, stress the importance of exercising caution and avoiding suspicious websites when entering your credit card number online.
Social Security Numbers
It’s likely your kids will be asked repeatedly for the last four digits of their social security numbers. Make sure they memorize all of the digits before they go off to college so that they’re not caught off guard.
Every parent wants their kids to be financially healthy — to have plenty of savings, know how to budget, and avoid the troubles that come with bad credit. But your kids won’t know how to be savvy with money on their own. Take the time to teach them good tips at every age and set them up for success.
Additional Resources
Find games, activities, and information about money for kids at MyMoney.gov.
Follow the FDIC’s Money Smart for Young People lesson plans.
Explore the U.S. Securities and Exchange Commission’s Compound Interest Calculator.
Learn how to explain taxes to kids at USA.gov.
Investigate different types of coins and learn more about the U.S. Mint.
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Finances are often talked about like some enigma that can’t be cracked unless you’re an accountant, investor, or a CFO. In fact, according to a study from Statista, only 25% of respondents said they considered themselves to be very financially literate, while 4% said they were not financially literate at all.
But the stigma around financial expertise has got to go! By using your resources and taking charge of your own financial standing, you can make a difference in your own life and even inform friends and family who are struggling to manage their own finances.
One of the best ways to glean financial knowledge is to read about it. From financial news and our #RealMoneyTalk series, to the best finance books of all time, there are plenty of opportunities to learn more about your money. Whether you’re looking to boost your budgeting skills, try your hand at investing, or want to learn how to save for retirement, you’re in the right place.
In this post, we’re discussing the 16 best financial books of all time. From books by spunky financial advisor Suze Orman to finance books specifically for millennials, there’s something in here for anyone who wants to strengthen their financial prowess.
Looking for a quick book recommendation? Use the links below to skip ahead, or read end to end to get the most out of our comprehensive list of the best finance books of all time.
Best financial books by category
To help you find the right book for your financial needs, we’ve broken this list down into 7 categories, with some of the best book selections in each.
Best financial books for all readers
Whether you’re just opening your first credit card or you’re trying to figure out how to start a budget, there’s a lot to learn in the finance world. But pick up the most recent issue of the Wall Street Journal as a finance novice, and you might feel a little lost, to say the least.
Before you dive into market trends and economic policy, it’s a good idea to establish some foundational knowledge first. Our list of the best financial books of all time in the general category include titles that encourage changing your perspective on money, to a book that gives a cynical yet informative run-down of the top financial terms consumers need to know.
Nudge: Improving Decisions About Health, Wealth, and Happiness
In addition to providing advice on finances and wealth, Nobel Prize winning author, Richard H. Thaler tells readers how they can shift their decision-making skills in all facets of life including health and happiness.
Thaler and co-author Cass R. Sunstein include rich behavioral data to look at how humans make decisions and how they can improve their “choice architecture” to avoid investment mistakes, unhealthy habits, and even relationship faux pas. If you’re in search of a new perspective to help you better manage your finances and related decisions, Nudge could be just the push you need to take hold of your personal finances and start meeting your financial goals.
The Power of Habit: Why We Do What We Do in Life and Business
If you’ve tried budgeting before and you just can’t get it to stick, it could be time to take a closer look at your habits. In his New York Times bestselling book, author Charles Duhigg examines how people create habits and how we can change them.
Duhigg backs his methodology in The Power of Habit with scientific research and anecdotes that readers can apply to their own lives, whether it’s changing financial habits or learning how to be more productive in work and in life.
The Devil’s Financial Dictionary
One of the biggest roadblocks in financial literacy can be connected to the complexity of the financial jargon and processes we see on the news and in blogs. But in the name of readability, author Jason Zweig brings these convoluted terms back to earth with witty definitions that Wall Street executives and financial amateurs alike can appreciate.
If you’ve ever felt like the finance world is too pompous or complex for your liking, you’re certainly not alone. The Devil’s Financial Dictionary demystifies everything from Wall Street lingo to general terms you can apply to your everyday life.
Best financial books for retirement
Preparing for retirement is an exciting time. You’ve worked much of your life building your career and saving up money, and now it’s time to start catching sunsets instead of chasing deadlines. But as you’re preparing for your sunset years, a lot of questions tend to arise.
How much money should I have in my 401k? Can I really afford to retire? When can I access the money in my retirement fund?
Sound familiar? You’re not alone—a lot of new and upcoming retirees have experienced the same woes as they plan for life after work. But the good news is, some of the most successful finance experts and authors in the world have taken to this topic to provide consumers with the answers they need as they approach retirement.
With that said, here are some of the top finance books for retirement planning:
You’ve Earned It, Don’t Lose It
You probably recognize her spunky personality and hard-hitting financial advice from the Oprah Show and Dr. Oz, but applying her advice directly to your personal finances is a revelation all on its own. In her book You’ve Earned It, Don’t Lose It, author and financial advisor Suze Orman discusses exactly what consumers need to know as they’re prepping their finances for their upcoming retirement.
From choosing trusts vs. wills to maximizing retirement income, Orman’s national bestseller is nothing short of a complete guide to retirement planning.
How to Retire with Enough Money: And How to Know What Enough Is
Ever wondered how much money you need to retire or how much longer you’ll have to work to get there? In her book, How to Retire with Enough Money: And How to Know What Enough Is, retirement planning specialist Teresa Ghilarducci levels with upcoming retirees to tell them how much is enough and how to make your retirement savings grow all in a quick 144-page read.
Ghilarducci also discusses the external factors that might impact your retirement, including politics and the healthcare systems we currently have in place. If you’re looking for a way to ramp up your retirement savings, even if you’re still in college, this book is among the best financial books of all time…at least in our book.
Best financial books for millennials
If you’re a millennial in 2019, you’re likely in a more complicated financial position than people your age in past generations. Perhaps you’re a recent college grad trying to navigate the workforce on your own and you haven’t quite found a balance between entry level experience and a livable wage. Or, maybe you’ve reached the most exciting moment of your financial history thus far and you’re ready to meet another financial milestone such as buying a house or starting to invest in the stock market.
No matter where you’re at with your finances at the moment, it’s an exciting time to learn more about your money. If you’re looking for knowledge and advice specifically designed for millennials, check out these finance books.
Broke Millennial
Ever heard of #GYFLT? Author and personal finance expert Erin Lowry developed the hashtag to send millennials an important message: “get your financial life together!”. Whether you’ve started saving money or you’re living paycheck-to-paycheck , Lowry’s Broke Millennial book series acts as a guide as you prepare to tackle financial milestones such as getting married, buying a house, having kids, or trying your hand at investing.
So far, Lowry has two books in the Broke Millennial lineup: Broke Millennial: Strop Scraping By and Get Your Financial Life Together and Broke Millennial: A Beginner’s Guide to Leveling Up Your Money. Did we mention she’s also a contributor to our blog? Click here to read more from Erin Lowry.
Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence
Many of us need a step-by-step guide to help us get our habits in order—whether it’s revamping your personal finances or getting back on your fitness game. With their book Your Money or Your Life, authors Vicki Robin, Joe Dominguez, and Mr. Money Mustache team up to give readers 9 simple steps to help them shift how they deal with money to make progress toward financial independence.
If you want to learn the basics of managing money, figure out how to fund your dreams, and start taking control of your financial future, this book comes highly recommended as one of our favorite personal finance books for millennials.
Millennial Money: How Young Investors Can Build a Fortune
If you’ve been considering investing your money, congratulations! That’s a huge step to take in your financial future, and it’s an exciting time to learn about how the finance world really works, first-hand. In his guide, Millennial Money, author Patrick O’Shaughnessy discusses how young people can cash-in on the global stock market to make up for potentially limited access to pension plans and Social Security.
O’Shaughnessy recommends investing early to reap the most reward and provides a basic strategy to help you develop your stock portfolio.
Best financial books for women
From career paths and finances to family structures, women in the 21st century lead very different lifestyles now than they ever have in the past. But along with their triumphs and new opportunities, women today may find themselves facing unique challenges when it comes to managing their own money.
Whether you’re looking for help learning how to balance your family life or financial life, or you’re looking to take over the investment world, there are plenty of empowering finance books for women to boost their financial knowledge.
Here are some of the best finance books for women:
You Are a Badass® at Making Money: Master the Mindset of Wealth
You may have heard some buzz about author Jen Sincero’s premiere novel, You Are a Badass® , also informally known as the young person’s guide to self-worth and stability. Well, the first edition was so successful that Sincero has since released two other books in the series: You Are a Badass® Every Day and You Are a Badass® at Making Money.
In each of her books, Jen Sincero offers empowering advice to readers, along with real strategies to make your personal goals actually happen. In You Are a Badass® at Making Money, Sincero uses humorous personal experiences as the backbone of her monetary manifesto, while teaching readers to:
Find out what’s holding them back from making money
Generate wealth according to their own standards, rather than societal norms
Curate their own financial future instead of waiting for things to happen
If you’re in search of a modern take on money that’s relatable instead of intimidating, look no further than this one.
Smart Mom, Rich Mom
Finding a healthy financial balance can be tough when you’re raising a family…or getting ready to start one. From diapers to diplomas, having kids can end up taking a toll on your finances if you’re not armed with the right resources to keep things in check.
In her book, Smart Mom, Rich Mom, Kimberly Palmer explores different ways women can shape their financial future while raising a family. Palmer covers everything from career growth to creating budgets to help ease the stress on moms juggling household and financial responsibilities. If you’re curious about how you can prepare your budget for kids, or want to know how to repair your current financial situation, this book could be just the financial read you need.
Best financial books for budgeting
Budgeting can be one of the trickiest things to master when it comes to achieving financial wellness, but as you probably know, budgeting is an important skill to learn. Whether you’re wondering why you need a budget in the first place or where to begin, these budget-specific books are here to help.
How to Manage Your Money When You Don’t Have Any
One of the most frustrating roadblocks to saving money is feeling like you don’t even have enough money to cover your bills, let alone save. According to the U.S. Census Bureau, approximately 12.3% of Americans were living in poverty in 2017. With that statistic in mind, it’s easy to see that financial challenges are widespread across the country.
If you’ve ever been in a scenario where you’re scraping by to pay your bills but you want to save money, Erik Wecks’ How to Manage Your Money When You Don’t Have Any could give you the insight and inspiration you need to optimize your financial situation. Wecks speaks from his personal experience struggling to make ends meet in order to give context and provide readers with suggestions that might work for them, too.
The Financial Diet
Feeling lost at the thought of crunching numbers or developing a budget? Author Chelsea Fagan’s been there. In her book/life guide, The Financial Diet, Fagan gives millennials and Gen Zers the tools to take over their finances and build a better future. From budgeting to investing and slimming down spending, Fagan’s got your finance questions answered.
Best financial books for entrepreneurs
Are you planning your next business venture or world takeover as you’re reading this? You might want to take a moment to learn from the experts first. In these finance books for entrepreneurs, you can learn from their mistakes, find out how to optimize your business plan, and discover new strategies to boost your business.
You Are a Mogul
Entrepreneur Tiffany Pham has had to adapt to life fast—and she’s done more than just adapt. From attending business school at Harvard to founding her own company, Pham’s had a lot of experience building her empire from the ground up. In her book You Are a Mogul, Pham tells readers all about how she got to where she is and how they too can make their own entrepreneurial dreams come to fruition.
Whether you’re looking for guidance in identifying your passions or want to know how to “Crush it in Corporate Life,” You Are a Mogul includes the resources and real-life advice you need to jumpstart your career.
Good to Great: Why Some Companies Make the Leap and Others Don’t
Have you ever wondered what really differentiates two competing companies when it comes to success? They entered the market at the same time and both have strong branding, but why is one so much more successful than the other?
In his book Good to Great: Why Some Companies Make the Leap and Others Don’t, author Jim Collins analyzes what makes a company go from good to great, and why some companies are able to achieve success despite their mediocre reputation. Collins focuses on 4 key findings to support his theory:
Leadership structure
The Hedgehog Concept
Discipline
The Flywheel and the Doom Loop
If you’re thinking about starting your own business or what to optimize your current structure, consider using Collins’ book as your guide toward entrepreneurial success.
Best financial books for investors
Navigating the stock market as a beginner is no simple task. To help you learn the ropes, investment experts such as Warren Buffet and Burton G. Malkiel are spilling their secrets in these financial books for new and seasoned investors.
The Essays of Warren Buffet
As one of the most successful businessmen of all time, chairman and CEO of Berkshire Hathaway, Warren Buffet, is one of the most influential figures in the investment world. Lawrence A. Cunningham’s curation of Warren Buffet’s essays include topics from wealth management to investment strategy.
If you’ve considered investing in the stock market but you’re not sure where to start, The Essays of Warren Buffet could be the introductory guide you need to take the leap.
A Random Walk Down Wall Street
Jumping into the investment world can be intimidating, to say the least. But having a lay of the land, working knowledge of the terminology, and some insight on investment strategy, you could be cashing-in on Wall Street in no time.
In his investment guide, A Random Walk Down Wall Street, Burton G. Malkiel educates readers on a variety of investment topics that can easily be applied to the modern marketplace, thanks to updated editions. Malkiel covers just about everything consumers need to know about successful investing—from 401ks to digital currency trends.
More ways to learn about finance
In addition to reading some of the best financial books of all time, there are plenty of other resources out there to help you diversify and expand upon your financial knowledge. Try incorporating some of these strategies to become a self-taught financial expert:
Speak to a financial advisor
Learn more about your credit score by getting a free credit report
Listen to finance-related podcasts
Read financial news and blogs
Participate in conversations about finances with family and friends
Practice managing your personal finances by using a budgeting app
Take a class online or at a local college
Watch our #RealMoneyTalk series
Key takeaways: Best Finance Books of All Time
The financial world can often seem intimidating, but if you just take a little time to learn about it, you may find that you’ll have a better hold on your own financial standing. Use this list as a guide to help you learn more about how money works in general and as it applies to your personal finances.
Have any financial book recommendations of your own? Let us know in the comment section below!
Save more, spend smarter, and make your money go further
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Save more, spend smarter, and make your money go further
The temptation to overspend is seemingly everywhere you go. Whether you’re at the grocery store, checking your email, or scrolling on Instagram, ads are everywhere you look. These days, targeted ads are getting better at stealing your attention and your budget. While shopping never goes out of style, you may be wondering how to stop spending money on unnecessary items. Luckily, we have a few tricks up our sleeve.
From becoming your own chef to creating and sticking to a budget, there are a few ways to avoid temptations to overspend. Not only does overspending impact your finances, it could hinder your chances of meeting your financial goals. Curb your temptation to spend money with our 13 budget savers below.
1. Know Your Weaknesses
While you’re gearing up to end overspending, first find out where you spend the most money. Look through your recent statements and highlight any unnecessary expenses. Where are you spending the most on items or services that benefit your finances, or steal from them? Once you’ve recognized your unnecessary expenses, limit your spending.
Bonus step: Create your ideal budget and set specific financial goals using the Mint app. Enable alerts to notify you anytime you’re nearing your budget’s limit.
2. Create a Budget and Stick to It
Now that you’ve identified where you overspend, it’s time to create a budget to keep your temptations at bay. As a general rule of thumb, you should follow the 50/30/20 rule — 50 percent of your income going to necessities, 30 percent towards extras, and 20 percent towards your savings.
After figuring out how much money comes in versus out, set your monthly budget goals. As each month may have different expenses, plan for the adjustments. Sit down at the end of each month to readjust your budget for the next month ahead.
Bonus step: Schedule budget check-ins once a month to hold yourself accountable.
3. Give Every Dollar a Purpose
When creating your budget, try budgeting to zero. When you have extra money laying around in your account, you may feel tempted to spend it on things you don’t need. Once you’ve accounted for your necessary expenses like rent, electricity, and WiFi, divide up your leftovers to put towards your savings, extra debt payments, and investments until you reach zero.
Bonus step: Set up automatic savings contributions to make sure your income is directly deposited where you want it to go.
4. Only Shop With a List
Write out a shopping list before you enter the store to ensure you get everything you need without any extras. While you’re shopping, only stick to what’s on your list. If it’s not on the list and you haven’t budgeted for it, put it down and just keep walking.
Bonus step: To avoid impulse purchases, unsubscribe from all your email newsletters and delete shopping apps from your phone.
5. Check Your Budget Before You Spend
If you do find yourself eyeing an item that you haven’t budgeted for (it happens!), check in on your bank account before making the purchase. If it fits your budget, ask yourself the hard questions. Do you really need this item? If so, how would it benefit you and your lifestyle? Could it save you time or money? If yes, follow through with the purchase while respecting your budget.
Bonus step: Wait three days before purchasing an unneeded item. After 72 hours, if you’re still interested and it fits your budget, go back and get it.
6. Invest In Multi-Use Products
While your monthly goal may be to save as much as you can, be open to higher-priced items that could help you reach that goal. For example, buying reusable paper towels means you’ll spend less on disposable ones over time. Another way to save on small expenses is to become your own barista, which can save you between $1,934 to $2,327 a year.
Bonus step: Consider adopting some minimalist lifestyle ideas to help spend less and declutter.
7. Ditch Food Delivery and Cook at Home
The average American spends $3,459 on eating out every year. Instead of ordering food for lunch every day, meal prep at home. You can work this into your weekly routine by designating a day for meal planning and a day for grocery shopping and cooking. Planning your meals saves you from overspending while still making your favorite gourmet meals. You can save eating out for special occasions.
Bonus step: Delete all your food delivery apps from your phone to avoid the urge to order a speedy, but expensive, meal.
8. Pack Leftovers the Night Before
When your calendar’s booked, you’re most likely looking for the easiest way to get food for lunch. Nix your takeout food budget and pack your leftovers from the night before. While some nights you may be booked with events or virtual get-togethers, meal prep once or twice a week to ensure you have food for lunch every day. Simple dishes like chicken and veggies are easy meals to make on a budget.
Bonus step: Organize a “lunch swap” with your coworker so you don’t get bored of eating the same meal.
9. Squash Sale Shopping
If items on your shopping list aren’t on sale, don’t go looking for unnecessary items on the sale racks. You may walk out of the store buying something you don’t need because “it was only five bucks!” Kick discount shopping to the curb unless the items you need are part of the sale.
Bonus step: Save time and money by avoiding discount catalogs and sale sections.
10. Opt For Generic Over Name Brand
While checking off your shopping list, see if there are any generic alternatives to big-name brands. Most big box stores make the same products at a discounted price in exchange for the branded packaging. Compare the ingredients of a generic item against name brand products to see if you can spot a difference. Purchasing generic food products alone could save you 30 to 60 percent.
Bonus step: Google online coupons at checkout to see if you can get an added discount.
11. Cancel Unnecessary Subscriptions
While your gym membership and TV streaming system may have served you a few years ago, it may not now. Audit your expenses each month to see what you’re able to cut out. Instead of paying for a gym membership that costs on average $696 each year, purchase weights and a yoga mat for your own home gym. Not only could it save you money year after year, it could save you the commute to the gym and back.
Bonus step: As 65% of people don’t keep track of their monthly spending, schedule budget audits on your calendar every three months.
12. Challenge Yourself to a No-Spend Challenge
Participate in daily, weekly, or monthly savings challenges to make penny-pinching more fun. Ask your friends and family to join in on a no-spend challenge to up the stakes. Spark some friendly competition while giving back to your bank account. Once the month has come to a wrap, treat yourself to your favorite snack in celebration of your achievements.
Bonus step: Set an alert on your phone for a no-spend day each week. One New Yorker saved $18,432 in six months from having one no-spend day a week.
13. Set New Budget Goals and Repeat
Challenges help keep your eyes on the prize. Set differentgoals as you audit your budget each month. One month you may want to focus on contributing to your emergency fund, while the other you may want to increase your student loan payments. Get creative with your goals and set up budget alerts to ensure you’re meeting them.
Bonus step: Tell your friends and family about your goals each month to increase your odds of meeting them.
Invest Your Time and Money On Things That Help You Save
What else could you do with your money to earn more? Simply investing a hundred dollars in home gym equipment could pay for itself (and more) instead of purchasing an annual gym membership. Below are a few more options that could save you time and money year after year.
Make your coffee at home: Buy yourself a coffee maker and cup that you love. Use your machine and reusable cup every day to save hundreds of dollars on takeout coffee.
Become a beautician: Order hair shears, at-home dye supplies, and nail kits to save on the tremendous beauty industry markup prices. Ask your friend to do your hair or take it upon yourself to learn.
Use reusable products: Reduce your waste and purchase reusable products. Swap your paper towels for reusable towels to save the earth and budget.
Shop quality over quantity: For instance, invest in staple clothing pieces over fast fashion. You could save money and time on constantly shopping for new clothes.
Create an at-home gym: Purchase a few weights, a yoga mat, and a water bottle and get a sweaty workout done at home. You may even feel less stressed about beating traffic to make it to your fitness class on time.
Track your spending on the fly: Download our free app to track your spending habits, even when you’re out and about. Set up alerts to ensure you’re always on track with your budget.
Divvy up time for your passion projects: Say no to events that don’t benefit you and use that time to create passive income projects that last a lifetime.
Even though you may be looking to save more and spend less, you don’t have to cut all your favorite things out of your budget. Instead, practice spending with a purpose. Your weekly dinners out on the town may not as mean as much as they do when you treat yourself to a nice steak made at home. If you’re frequently tempted to spend your money instead of saving, create a budget to ensure you’re always keeping up with and sticking to your savings goals.
Save more, spend smarter, and make your money go further
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Both of my grandpas with me as a young girl on Easter.
TIAA-CREF recently surveyed a number of grandparents and grandchildren across the country. I was interested to read that this was one of the findings from their survey:
We discovered that grandchildren not only want to talk to grandparents about money and savings, but also that they view their grandparents as positive role models when it comes to the importance and ability to save money.
Read more here.
I so agreed with this, because I attribute much of my own personal financial success to my grandparents — my grandpas especially. My parents were highly, highly instrumental in shaping my thoughts on finances, debt, spending, and saving, but it was my grandparents who first laid the foundation for them.
There is so much I could share about how my grandparents impacted me. My grandmas taught me so much and set such great examples for me in many areas. But when it comes to finances, it’s hard to think of anyone who has impacted me more than my grandpas.
Here are six things my grandpas taught me about financial success:
1) Be a Disciplined and Diligent Person
Both of my grandpas have lived lives of productivity.
My dad’s dad (whom we affectionately call “Pop”) was one of the hardest working men I’ve met — right up until he passed away. He was usually up before 6 a.m. and he’d go out and walk and then start in on his day. Even after he retired, he never stopped working. He was always fixing things, building things, and looking for people to help.
My mom’s dad, Grandpa Duane, is still going strong. He keeps everything in their home and in his shop in meticulous order. He cares for his wife, my step-grandma, and is always thinking of others. It amazes me how much he does, even in his eighties! In fact, just recently, he was out on my parents’ property flying one of his planes. I hope that I’m still as active and driven as he is when I’m a great-grandma!
Pop helping me with a present I’d just opened for my birthday while my older sister, Brigette, looks on.
2) Save Your Money Carefully
I can’t think of any time I’ve seen either of my grandpas spend money frivolously or extravagantly. Every purchase they’ve made has been made carefully. Time and time again, I’ve seen them wait to buy something they wanted until they had saved up for it and were sure they were getting a good deal.
At the same time, I’ve also seen them be generous with their wives, their children and their grandchildren. I truly believe that the thought and intention they put into wisely managing their money gave them the opportunity to be able to bless others more.
3) Never Pay Full Price for Anything
I remember when Pop passed away and we were going through his house, we found multiple brand-new pairs of the same kind of shoe he always wore. We were curious what this was about until we realized that he’d found a great sale on them (they still had the clearance prices on them), so he’d bought extra for the coming years.
Not only do I love this story because it shows his wisdom in always planning ahead, but I also love it because it shows how simple he liked to keep things. He always wore the same kinds of clothes and shoes and once he found a brand/make that worked well and held up, he just stuck with that.
We’d often tease Pop about how he would buy extra of items like peanut butter if they were on a great sale. Looking back, I’m pretty sure he’s somewhat to blame for my bargain-shopping nature. And I’m incredibly grateful for the example he set and all the money he’s inspired me to save over the years!
Grandpa Duane with my brother, Dustin, my sister, Brigette, and me — yup, fingers in my mouth and all! 😉
4) Think Through Purchases
I’ve observed both of my grandpas purchase a house in my lifetime. In both cases, I saw them think through the purchases very carefully.
They took their time. They asked for counsel of others. They considered their options.
And they didn’t just run ahead and get something because it looked like a great option. They wanted to make sure it was the best option. And in each case, the time and thought they put into these big purchases turned out to serve them well.
5) Use It Up, Wear It Out
My grandpas were experts at this! Why buy something new when the old one will do just as well? They took very good care of all of their possessions and made them last as long as they could. And it’s amazing how long they could make something last!
We would often joke with Pop about the fact that maybe he should replace his hole-y sweat pants or t-shirts, but he’d keep wearing them until they were completely and 100% worn out. While I haven’t quite gone this far, I do wear and wear and wear my clothes and shoes, usually until they are very well-worn. And this not only simplifies my life, but it saves us a lot of money.
My dad’s mom holding me for the first time while Pop looks on and holds my older sister, Brigette.
6) Don’t Go Into Debt — Except for a House
One thing that Pop ingrained in my dad was that you should never go into debt for anything except a house. From the beginning of my parents’ marriage, they followed this principle.
And then they took it one step further.
When I was around six years old, my parents decided to do something radical and work hard to pay off their house. They then saved up everything they could.
When I was ten years old, we sold that house and bought land out in the country. My dad bought an old single-wide trailer for a few thousand dollars and moved it to the land.
The trailer didn’t have an oven, didn’t have heat or air conditioning, leaked crazily every time it rained, had a bad mice problem, and was in fairly disgusting shape when we got it. But after days of elbow grease, we got it in livable shape, moved most of our possessions into a storage unit, and moved the basic necessities into that trailer.
We spent seven months in that trailer while we were building our house. I could write a book of stories from that experience. But most all of the memories are very happy memories and I wouldn’t trade the experience for the world.
At the end of seven months, our new house was finished enough that we could move into it. And it was a huge celebration to make it to that day… and for my parents to have realized their dream of building a house debt-free.
Let me tell you: Pop’s encouragement to my dad to never go into debt except for a house and then seeing my parents take that advice and go even further with it, well, that has a profound effect on you as a child. Especially when you then see your parents go on and be in position to be able to give generously because they worked so hard to no longer have a house payment.
Truly, my husband and I owe so much to our parents and grandparents. I know beyond any shadow of a doubt that we would never be in the position we are in financially nor would we have paid cash for our first house were it not for my grandparents influence and examples. And we are eternally grateful.
Want to start a conversation between your kids and their grandparents about money and finances? Or are you a grandparent who would love to know how to talk to your grandkids about money? Check out these free downloadable resources for tips and ideas to start the conversation.
Note: This post was underwritten by TIAA-CREF. See my disclosure policy here.
I haven’t set up my own blog yet, I’m stuck on a decision I have to make before I can really begin. How do I figure out what topic I should blog about? There seem to be blogs on pretty much every topic imaginable, so I know I could write about any topic, but how do I figure out what kinds of topics people would be interested in reading about? -Christopher
This is such a great question, Christopher, and one that many people have. Here’s my encouragement to you and anyone else who is considering starting a blog and wondering what topic would be good for them to choose as their focus:
Take out a sheet of paper or open up a blank page on your computer screen and answer these questions. There are no right or wrong answers. Just write exactly what comes to mind in answer to these — anything and everything you think of.
What do you love?
What are your interests?
What are your hobbies?
What words come to mind to describe you?
What unique life perspective do you have?
What could you talk about for hours and not get tired of?
After you’ve done this exercise, then wait a few days and take out another sheet of people or start a new page on your computer and ask a few close friends and/or family members to go through the questions with you giving their answers and input.
At the end of all of this, you should see some themes emerging and this should give you some direction for where to go with your blog.
One important note: I believe that the most successful bloggers are people who solve a problem, provide hope, and/or meet a need. When you are considering what you should focus on when you blog, make sure that you are seeking to do at least one of these things through your writing. If not, I encourage you to go back to the drawing board.
Here are a few things to consider:
1. You don’t have to pick just one topic.
While there is definitely a place for a very niche blog, I think it’s much easier to choose a focus for your blog that encompasses at least a few different topics.
This not only makes your blog more appealing to a wider audience, but it also provides you with more blogging options and it makes it less likely for you to run out of post ideas within a few months!
2. The best way to learn is to just start writing.
I’m a big fan of just jumping in and learning as you go. Yes, it’s good to have an idea in mind of where you’re headed for the first few months. And no, I don’t recommend publicly announcing your blog when you haven’t even written one post. However, don’t sit around and spend hours agonizing over a topic; just jump in and start writing posts.
Here’s the thing: it’s hard to really know what works best until you just get out there and try it. I would have never guessed that I would love writing on some of the topics I’m passionate about today. And I certainly would have never guessed that so many people would have been so wildly interested in certain topics. Had I sat and planned and brainstormed and mapped out and goal-set and analyzed and never just DONE SOMETHING, I wouldn’t have figured out what I loved to write about or what the market wanted.
So truly, just go for it. Start writing posts. Try different kinds of styles of posts. Experiment with different topic angles. Keep learning, keep tweaking, keep observing what’s hitting a nerve and what’s not. And then keep doing what works and let go of the things that don’t work.
3. It’s perfectly acceptable to change your focus down the road.
When I started my first blog, I would have never dreamed that I would someday be writing about intentional finance, intentional family, and intentional business. At the time, we were just trying to make ends meet financially, I had just had my first child, and I was trying to figure out how I could make enough money from home to keep our family afloat financially while allowing me to still be a stay-at-home mom.
I was not in a position to be blogging about intentional finances, family, or business because I had little to no life experience in those areas. In the beginning, I tried out a LOT of different topics. In fact, my blog was so eclectic that I really couldn’t tell you what the focus of it was.
I had a lot of learning to do and a lot of life to live. But honing and sharpening my writing and thinking skills by blogging about whatever I was passionate about that day was one of the best exercises for a budding blogger. Not only did I quickly discover how little I knew, I also discovered there were a lot of topics I shouldn’t be blogging on — because I had no life experience to bring to the table.
As I continued to experiment, I slowly learned things that worked, learned areas I was qualified to write on, and developed a better understanding of what kind of blogging focus was a good fit for me. It took me a few years, though, and lots of writing and trial and error to find that happy medium.
Pick some topics you think will be a good fit for you, jump out there and start writing about them, and keep learning and tweaking as you go. I’m cheering for your success!
What advice do the rest of you have for Christopher? If you’re a blogger, how did you choose the focus of your blog? I’d love to hear!
Thinking Of Starting a Blog?
Over the years, I’ve received many requests from folks asking for help and information on how to start a blog and how to make money blogging. I’ve written about this in past years, but I wanted to let you know that I recently put together a comprehensive page on How to Make Money Blogging with updated information and links. I encourage you to check it out here if you’re interested in how to make money blogging.
Published: by MSM Team on December 18, 2014 | This post may contain affiliate links. Read my disclosure policy here.
Traci emailed in this reader tip:
I had been planning a yard sale for months but this summer I decided I didn’t have enough or valuable enough things to make it worthwhile.
About this time, I joined a handful of Yard Sale groups on Facebook and bought a few things through them. After purchasing a few things from others and realizing how easy it was to post things for sale also, I decided to list a few items around the house.
Within minutes — even seconds, sometimes — I had people interested!
I started cleaning out closets and found so many other things that I wanted to get rid of. It felt great to purge and makes some money, too. Items that I have sold so far have been: adult and children’s clothing, toys, kitchen items, furniture, books, and movies.
Money is tight this Christmas, but by selling items on the Facebook Yard Sale Groups, I was able to pay cash for Christmas for my entire Christmas for my family and even had some extra money leftover! The best advice that I have for selling on local Facebook Yard Sale groups would be consider the time and gas you are spending to buy or sell an item. If you have to travel far, this could be eating your profit or savings.
Post that others need to pick up in your city. I like to try to arrange pickups or drop-offs either in the morning or evening as to not interrupt my daily work, school, and family routine.
I also don’t have strangers come to my home. Remember safety first and it is best to meet in a public place like a shopping center or, even better, the local police department parking lot.
Also remember that people have busy lives and things happen that they have to reschedule a transaction sometimes. With that said, if someone is not being respectful of your time or you are not comfortable with something, don’t meet with them.
I am not stressing about Christmas this year and have not put one thing on a credit card that I will regret having to pay for later! -Traci