12 Money Tips You May Not Know

 

1. Saving money is much easier than making money. There are a thousand ways to save money but getting a better job is the only way to make more.

2. A $1.00 saved is $1.30 Earned. Money in your bank account has already been taxed, if you can save $500 on a purchase you are actually saving yourself from having to earn an extra $800. Give or take

3. RMB - Recurring Monthly Bills. These are your cell phone, rent, food, water, etc. Things you cannot live without or are automatically billed from your account or to your credit card. You should strive to minimize your Recurring Monthly Bills as they eat directly into your savings potential.

4. Compounding Interest: Works for you and against you. The snowball effect that can make you wealthy can also become a large weight of debt that is hard to overcome. 

5. Spend money on things that retain or appreciate in value. It is difficult to resell a holiday vacation or a fancy dinner date. Real Estate, Home improvement, Education go up in value or help with your earning potential.

6. You’ll always spend more than you think so it's best to always default to spending as little as possible. If you end up having extra money you can easily find somewhere to spend it. Life is less stressful when you have extra money to spare vs having less than you thought.

7. Unresolved financial challenges are one of the top reasons for divorce. Financial stress puts undue pressure on a marriage ruining arguably the most important relationship.

8. If you cannot pay for something in cash then you most likely cannot afford it. 
Credit cards should always be paid off in full as their interest is so high at 22%. If you do not pay your credit card in full each month you should cut up your credit card. Those who collect points with credit cards essentially are buying everything at 1-3% off. Credit cards should not be used as an emergency fund. Family, friends, budgeting and line of credit should be used first.

9. Line of credit should only be used for emergencies due to their high interest of 9% - 11%. But ideally you should have an emergency fund to avoid all debt.

10. There are always expenses that can be cut. Instead of doing sit down restaurants you can eat fast food. Instead of fast food you can cook at home. There are even coupons for fast food which can save hundreds over the course of a year.

11. 50-30-20 Rule: Recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings

12. Your housing should be no more than 30% of your take home income.

If you found this helpful and would like help budgeting or investing please email me at TaylorMckeeCoaching@gmail.com