10 Financial Hacks that can fetch you more money
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Growing your wealth starts with doing the simple things you might have heard before but haven’t done yet. Wealth isn’t meant to be enjoyed by some special people who have a certain privilege. Having more money is possible for you to attain too. All you need is to have a financial strategy that you duly follow whether you feel like it or not.
In this post, you will be learning time-proven financial hacks that can make you more money in the next 3 months and beyond.
10 Financial hacks that can make you more money
Here are the financial hacks that you need to practice to make more money in 2021
- Pay yourself first
- Own an emergency fund
- Stick to a budget
- Stay away from debt
- Spend less than you earn
- Set realistic money goals
- Invest your money
- Track your net worth
- Make more money
- Increase your personal finance knowledge
1. Pay yourself first
If you don’t want to spend the rest of your life going from paycheck to paycheck until you are 65+, you need to start paying yourself first. Being able to pay yourself first is so important if you are interested in making more money. Avoid making the common mistake of paying your bills and buying irrelevant things without having enough to put aside in your savings account.
You can’t afford to be like most people who miss out on life-changing opportunities due to lack of money. Be intentional about paying yourself first each time you earn an income. You need to plan and set aside what you want to save, then you can figure out the rest, even if it means working overtime or finding ways to earn some extra money.
2. Own an emergency fund
What would your life look like if you lose your job tomorrow? What if you had an accident and couldn’t continue your business for a few months? You can’t just wish these all away without having a proper plan in place. If you feel this financial pressure every day, make sure you set aside your emergency fund.
A great percentage of what you paid yourself should go to your emergency fund account. Try having between six months to a year of living expenses in an easily accessible account. If you can’t save up to 6 months, you can save for 3 months.
This is still enough duration to help you get back on your feet after an emergency. If you intend to begin a business after your career, an emergency fund will help you start one easily. You won’t have to worry about where your daily expenses will come from for a while.
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3. Stick to a budget
If you don’t know how much you spend every month how can you plan well for your future? You don’t have to worry about tracking your daily expenses manually. There are so many good apps that can help you keep track of where your money goes with just a few clicks.
If you have never recorded your expenses, you can start with your bank statements from the last 3 months. Break down the expenses into sections, analyze what you spend, and see where you can spend less next month.
Based on the information of your spending for the past month, create a monthly budget. Ensure it covers all the necessary categories you spend on and add your expenses for each of them. You can start with this simple budget app.
4. Stay away from debt
Living beyond the burden of debt is liberating. Except you are faced with dire life challenges, you need to unlearn the habit of borrowing money. Strive to live a credit-free life.
However, there are two types of debts that exist; a good debt and a bad debt. You are in a bad debt if you only borrow money to spend on unnecessary luxury.
While you’re in a good debt if you have a reason for taking it and a realistic plan for paying it back such that you can pay completely quickly, or in a series of regular and affordable payments. An example of this is a mortgage payment
5. Spend less than you earn
Many people end up with a lot of debt at the end of the month because they often live beyond their earnings. Avoid spending more than you earn. If you want to buy a costly item, write it down. Keep it written for 30 days before you finally purchase it. If you forget about it or just decide after a month that you don’t need it, you’ve saved yourself from an expensive purchase.
6. Set realistic money goals
Saving money without a goal is uninteresting! I know that confidence that comes with saving consistently and watching your money increase gradually. While this is good, you need to save your money to meet a goal.
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Here are some good money goals you can start with
- Saving for a vacation
- Saving to buy a new house
- Saving for a course that could change your life
- Saving to start a business, etc.
Whether your goal is big or small, make sure you have one. It will give you something to strive for.
7. Invest your money
if you want to make your money work hard for you, you need to invest some of your savings in low risk and vetted investment products. Having your money work for you through investing is a good path to financial freedom. Check out this post on helpful tips for investing wisely.
8. Track your net worth
Knowing your net worth will give you an idea of your current financial position and help you know what to do to meet your financial goals. You can calculate your net worth by deducting your assets from your liabilities.
Your asset include ; cash in bank accounts, investment property value, investment account value, Personal home value, etc. Your liabilities include mortgages, car loans, cars, credit card balance, etc.
9. Make more money
The simplest way to make more money is to increase your income.There are many ways you can increase your income today without falling into the trap of get rich quick schemes. Understand that making more money requires work!
You could ask for a raise in your job, take some extra qualifications to get a higher paying ob or turn a hobby into a side hustle.
10. Increase your personal finance knowledge
If you want to transform your financial life, you need to deliberately learn how personal finance works. By learning how to manage your money the right way, you will begin to feel in control of your life. Start reading more financial blogs like this, take short personal finance courses, read books on financial intelligence, and listen to money podcasts.
Once you know how to manage your money, pay off your debt and invest your savings, you’ll experience a greater level of financial security. You can start with these personal finance books to improve your financial knowledge.
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These personal finance hacks will improve your financial status if you take action on them. Do you have more financial hacks you want to share with us? I’ll be happy to hear from you in the comments.
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