Money Hack 10

   CHAPTER ONE Curb Mindless Spending 

     HACK 1

         Avoid the Spending Trap!

 How many times have you anxiously waited for your next payday, confused about where all your money went? Odds are, you’re not fully aware of your spending and what triggers it.

Do you pick up breakfast sandwiches on your way to work? 

Are your bar tabs all from happy hours that went later than planned? 

Can you never get out of a big-box store for less than $50? 

Do you keep picking up the bill for lunch with friends? Once you know when, where, and why you’re spending more than you’re comfortable with on a regular basis,you can strategize how to pull back. Think about breakfast the night before to avoid the morning rush. Send your friend a Venmo request for their share of the bill while you’re still sitting at the diner. Set an alarm on your phone so you don’t order “just one more drink” after happy hour has ended. Head to the store after work—when you have less time to browse.

                     

       HACK 2  

      Make a Financial Bucket List 

It’s possible to make a budget that doesn’t feel restrictive and severe. You just have to put your money in the right bucket.

• Essentials bucket (50 percent) 
• Savings bucket (20 percent)
• Everything Else bucket (30 percent) 

Your budget will look like this

     FIRST, PLAN THE ESSENTIALS 

     Fifty percent of your budget should go   to “needs.” This includes everything from   your rent, to the parking garage at work.   to your groceries and prescriptions.

     NEXT, SAVE A LITTLE

             Any money you put in your savings accounts—whether it’s short-term savings   or  contributions to a retirement account goes into this bucket. If you’re paying off debt of any kind (credit cards, student loans, medical bills), put those monthly payments in the Savings bucket too. It should add up to about 20 percent of your take-home pay.

     AND NOW FOR EVERYTHING ELSE

• Your gym membership
• Holiday gifts 
• Concert tickets
• Magazine subscribe
• 
  

 Hack 3

     Don’t Quit Cold Turkey—Cut Back 

The idea of cutting out a budget category probably makes you nervous. But being mindful about your spending doesn’t have to be an all-or-nothing game. Instead of forcing yourself to go entirely without, reduce spending on that category by just

10 percent each month. You won’t see sudden, drastic change in your budget, but the shift will be a lot easier to stomach.
 

Say you spent $148 at coffee shops last month. The idea of never buying coffee is enough to make you want to hide from your budget forever, but what if you challenged yourself to spend just 10 percent less on coffee this month? That’s $14.80 less, for a total of $133.20.

HACK 4 

Never Miss a Payment 

     While you may get reminders by email   when your bills are due, don’t rely on them   as the sole reminder of whom you owe.   money to and when. Whether you use a.   paper planner or the calendar on your   phone, put the due date for every single   bill and the amount on your calendar each and every month. 
Don’t let yourself get lazy after a few months, thinking you’ve got all those due dates memorized. Having your bills noted on your calendar each and every month is a reminder of how much you’re spending on recurring costs month in and month out. If there’s an area that needs attention, it’ll be on your mind the minute you open your calendar.

HACK 5 

Make a Wish List 

The tricky thing about avoiding impulse buys is that it’s not the stuff that’s the problem—it’s our brains. When we’re feeling sad, stressed, or even bored, our brain searches for happiness. And from childhood, we learn that getting something new (a toy, candy, or some other reward) makes us happy—at least, for a little while.

HACK 6

     Do the 10/10 Rule

 Don’t think you can last a week with that object from your wish list on your mind? Work up to it with the 10/10 rule from writer Kristin Wong. When you want to buy something, wait for ten minutes. Then, if you’re still thinking about the item and it costs less than $10, go ahead and get it. But if you’re still not sure after ten minutes and it costs more than $10, put it back. This rule gives your brain time to cool down from the initial excitement of potentially buying something, but you won’t agonize about it for too long.

HACK 7

Simplify Your Coffee 

Fancy coffee drinks can put a pep in your step…but can also drain your wallet. If cutting caffeine is out of the question, it’s time to be strategic about your order

 One option is to find a cheaper drink that tastes just as good. If you enjoy frosty blended drinks, maybe an iced coffee with a shot of your favorite flavor would hit the spot. If you like frothy milk, replace your latte with a café au lait. If you’re not sure what to try, ask your favorite barista if there’s a “simpler” version of your favorite
drink.
Maybe this trick only saves you 50 cents—maybe a dollar. But over time, that amount can add to your savings without leaving you feeling sluggish.
 One option is to find a cheaper drink that tastes just as good. If you enjoy frosty blended drinks, maybe an iced coffee with a shot of your favorite flavor would hit the spot. If you like frothy milk, replace your latte with a café au lait. If you’re not sure what to try, ask your favorite barista if there’s a “simpler” version of your favorite
drink.
Maybe this trick only saves you 50 cents—maybe a dollar. But over time, that amount can add to your savings without leaving you feeling sluggish.

HACK 8 

Hack Your Spending with the Envelope Method 

Controlling your spending doesn’t stop at making a budget and allocating your money to various categories. Next, you have to stick to the plan you create. One way to do that is to go old-school and spend more cash money instead of swiping all the time.

HACK 9 

Aim for Zero

 Want to feel even more in control of your money each month? Try using a zero-based budget. With this method, every single dollar you bring home each month gets allocated to a particular category. The goal is to make your expenses for the month match your income to the penny.

Be prepared to reallocate funds as needed throughout the month to maintain that perfect zero. It’s also a good idea to leave any leftover funds in a “miscellaneous” category for your first few tries to provide a safety net, just in case.

       

Hack 10

                        Carry big bills

 
When you open your wallet and see a couple of crumpled dollar bills, you probably don’t feel very rich. With enough of those dollars, you can visit the vending machine at work or grab a drive-thru dinner on the way home. 
But how would you feel if you opened your wallet to find a crisp $20? Would you still feel compelled to spend it? Or would you want to hold on to it as long as possible?

Power of money