How to Maximize Savings
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Write it down: You can keep track using a good old-fashioned pen and paper or use "notes" on your phone. Use a spending tracker app: Do you prefer to keep track using technology? You can use spending tracker apps like Acorns, Goodbudget, Mint, Quicken, You Need a Budget (YNAB), and more. Try them out to see which works best for you and integrates with your bank accounts and platforms. Utilize spreadsheet monitoring: You can use a simple spreadsheet like Google Sheets to implement your budget. Try envelope tracking: Labeling envelopes can help you automatically monitor your spending. You can earmark envelopes for things like "grocery shopping," "entertainment," and "clothes shopping."
Learning to Budget Correctly
Limiting Credit Card Spending
Buy generic products Use less water and electricity Plan your meals Take your lunch to work Shop around for cheaper insurance Take shopping apps off your phone Buy used materials, including clothing
Thinking Twice Before Buying
Pay the smallest debt first: With this approach, you make the minimum payments on all your debts. Then, make a larger payment on your smallest debt every month. For example, if you have three debts worth $3,000, $2,000, and $1,000, you'd make extra payments on the $1,000 debt first. Once you pay off that debt, transfer the extra amount you'd been paying on the smallest debt toward the next smallest debt. Paying off the smallest debt first gives you a "quick win." Pay the highest interest rate first: Similar to the first approach, you also make minimum payments in this approach. When you pay the highest interest rate first, you make extra payments on the debt that has the highest interest rate. For example, if you have three debts at an 8%, 6%, and 5% interest rate, you'd tackle the 5% interest rate first. After you pay that debt off, the extra amount goes toward your next highest interest rate debt. Paying the highest interest rate first allows you to minimize the amount you pay in interest over time.
Taking Advantage of Employers 401k Match
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