7 Surprising Money ‘Rules’ Most People Don’t Know (But Should)
7 Surprising Money ‘Rules’ Most People Don’t Know (But Should)
Sarah Bourassa Thu, May 2, 2024
You’ve probably heard common financial advice like keeping a budget and trying not to spend more than you make. But other tips aren’t as well-known that can help you save a lot of money and create a financially healthy life.
From daily hacks to long-term tips, we talked to financial experts about not-so-obvious money advice they follow. Here’s what to know:
1. Sometimes you have to spend more to save more.
“A low price on a lousy product is actually a terrible deal because you will end up spending more, in the long run, to replace cheaply made items that break easily,” Andrea Woroch, a consumer-finance and budgeting expert, told HuffPost. “Focus on quality and spend more if it means it will last.”
Woroch tries to save on quality merchandise by shopping second-hand for name brands. For big-ticket items, she recommends taking advantage of retail sales events (like Amazon Prime Day) and buying seasonal items (like patio furniture and winter clothing) at the end of the season. Other tips: Participate in free loyalty programs and search for online coupons before making a purchase.
2. Don’t be too restrictive with your budget, and don’t try to change it all at once.
“Although a detailed budget keeps you on track to meet your financial goals, one that is too restrictive will actually backfire quickly due to burnout,” Woroch explained. “[And] if you try to change all your spending habits overnight, it will be difficult to stick to the plan.”
Instead, she suggests making a few small changes to your spending and savings habits — and then building on these once they become routine.
She said it’s also important to make room in your budget for expenses that matter to you. For example, if a dinner date with a friend or partner is a priority, keep this in your budget. Find other ways to cut down on spending, like canceling unused subscriptions and unplugging gadgets to decrease energy bills.
3. Beware of convenient methods of payment, like auto-renew.
“It’s extraordinarily easy now in our society to spend money without thinking about it,” said Anne Lester, author of “Your Best Financial Life.” “You can sign up for auto-renew … you see something cute on Instagram, you go tap and boom, you bought it.”
But being able to buy things too easily can lead to unconscious spending. Instead, Lester advises slowing yourself down to make spending money more of a conscious decision.
One way she does this is to always create a shopping list before she goes into a store or buys items online. For online shopping, she suggests setting aside a specific time once a week to make purchases. When reviewing your list, ask yourself: Do I really need this? Is there a tangible moment when I know I’ll use this? Just making the list will give you time to reflect on whether the purchase is worthwhile.
For subscriptions, it can be easy to forget ones set to “auto-renew.” Lester suggests doing a “subscription cleanse” periodically, reviewing all your subscriptions and canceling the ones you’re no longer using.
Being too restrictive with your budget may actually backfire.
4. Automate saving money instead of letting it sit in your checking account.
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https://www.yahoo.com/finance/news/7-surprising-money-rules-most-070024195.html