What is likely the most popular question that I get comes down to this, How do I increase my wealth? Although, these ideas may not be the most original, they are simple enough to get you on the right track.
1. Increase your 401k contribution
What is your total contribution right now? Do you know? If so, increase a percent or two and watch how your nest egg grows! You may have forgotten you lowered your contribution or you may not have even set one up through your work to begin with. Now would be a great time to adjust this up.
2. Eliminate two expenses
What are two wasteful expenses you are currently doing? For me is unnecessary tolls. Trying to save a little extra time by taking the toll road and paying $5-6, tolls can be a useless expense. Another wasteful expense is eating out, too much. Cutting back on the extra dinning, which only makes me feel lethargic anyway. What two can you cut out to be richer?
3. Shop without your credit card or cash
For me, I become wasteful once I start to carry cash around. I am a millennial and grew up on credit cards, so if I have cash I spend it right away, usually on pointless items. But, if you are a spender when carrying around the credit card then leave it at home if you go out to the mall and see if that helps reduce your spending.
4. Say no to debt
Cars, boats, shopping, etc. can all be ways to get back into debt. We all know this intuitively, yet we still think that we need more. More debt and more stuff doesn’t lead to a happier life,
5. Start a debt repayment plan
Head on over to Debtproofliving.com. Since I used to work for Mary Hunt I know how intricate and helpful her website tools are to help guide you to pay down debt fast! Without a repayment plan you become sucked into the life of the poor. A revolving circle of living paycheck to paycheck.
6. Balance transfer to a 0 interest credit card
Have a plan to pay down your debt? Why not transfer your balance to a zero balance credit card so that you stop accruing interest. Just add up your current interest you pay monthly and see how much a years worth of interest would save you.
7. Cut your expenses by an average of 5%
What would it look like to lower your expenses by an average of 5%. Obviously we have fixed expenses that cannot be lowered, but take for example your food bill. Could you lower that by 5%? How much food are you throwing away, or just saving for who knows when. Think about becoming richer by making more conscious decisions.
8. Set a savings goal and stick to it
Most often when we set a savings goal we don’t meet it. Why? Because life gets in the way and throws us off track. Set a new savings goal, but this time automate it. Set up an automatic transfer from your checking account to your savings account. Make it reoccurring. Forget about it!
9. Raise your deductible
Review your deductible and see how much you have it set for. Is it possible to raise it? Is it worth it to raise it? If you have been a safe driver for the past years why not raise it to say $1,000? This could save extra cash a year from now.
10. Skip the vacation or better yet do a staycation
Why not skip a year to get ahead or catch up on your finances. Vacations we all know are expensive, so what would your financial situation look like if you skipped it altogether?
We all want to have a better financial life. Sometimes we need to reorient ourselves and try something new. How are you increasing your wealth?