20 Money Hacks: Tips and Tricks to Improve Your Finances

Ryan McRae Says:

February 28th, 2008, 21:50 pm

There is nothing I’ve ever done as important as hack my money. ING Direct is awesome. The best move I made was having my savings withdrawn from my paycheck FIRST. So even if I blow my paycheck, my savings is save.

Well done.

Corey -Simple Marriage Project Says:

February 28th, 2008, 22:20 pm

Nothing harms a marriage more than the money issue. Communication is key. Developing a marital vision or plan for what you want to do and obtain as a couple helps generate teamwork rather than selfishness and deception.

Great tips again Leo. Thanks.

Thomas Herold Says:

February 28th, 2008, 22:23 pm

Definitely check out the book “The Millionaire’s Mindset” by Harv Eker. It’s an eye opener for your mindset around money.

Cheers

Thomas Herold
CEO Dream Manifesto

Marelisa Says:

February 28th, 2008, 22:28 pm

I’m pretty sure I read this in a book by Suze Orman: Pay for everything with bills; then take all of the change you get and put it in a jar. (That is, if something costs $1.80 you pay with two one dollar bills and the twenty cents you get as change goes into the jar.) This is “free money” and at the end of the month you can use it to get something fun.

There’s also the concept of “seed money” and the Law of Tenfold Return. If you want something that costs, say $200.00, you “plant” $20.00 by giving it to a charity, a church, or someone who really needs it. Then you claim your tenfold return and wait, fully expecting to receive $200.00 from some unexpected source. It is said that John D. Rockefeller, Andrew Carnegie, Aristotle Onassis, and many other extremely wealthy men used this method.

banji - LessonInLife.com Says:

February 28th, 2008, 22:46 pm

I like the idea of keeping a 30 days list of items to buy. But maybe we can add another rule so that every week we will review the list and cancel which ones that may not be already appealing. By keeping everything in one list until the 30th day, we might be reminded to just buy the items.

I personally was able to finally create my emergency fund by doing one thing, which is stopping impulsive buying altogether.

Hopefully it will be complementary to the articles to share how I do exactly that - 12 Unique Tricks To Combat Impulsive Buying

Israel Says:

February 28th, 2008, 22:47 pm

I do most of thee things and they do help.

Clay Collins | The Growing Life Says:

February 28th, 2008, 22:50 pm

Great list! One thing I frequently do is use Microsoft Money for the pocket PC to track EVERYTHING I spend. Also, once I started a ROTH IRA that was it: I found myself motivated to save like never before. There’s nothing like compound interest when to comes to extolling the virtues of “socking away” money.

Mud Says:

February 28th, 2008, 22:50 pm

Envelopes!! I finally see someone else doing this. I learned the value of cash and envelopes while living in Japan. They are a cash based society and I was living paycheck to paycheck while there. I split out bills by envelope and fun money types.

Every housewife there would disappear upstairs and come back with whatever money would be needed to pay for the repairman (500 dollars or so) or for a bit of extra food. I finally got to thinking that they must have emergency cash stored away. It was my most efficient and frugal use of money in my life.

Since I’ve been back in the States it’s been hard. I don’t feel as safe carrying cash as I did there. Cash is the best way to manage. I would swear by it.

François Says:

February 28th, 2008, 23:03 pm

Number 20 should be #1 on the lis, once you’re on that mindset everything is whole lot easier.
Instead of cutting on tv I started cutting on dvd’s, there’s useless stuff on every medium Leo. ;)

Great List anyway

Laura Says:

February 28th, 2008, 23:05 pm

Your mention of Google Docs is the best thing in this whole article for me. I alternate between my desktop and my laptop constantly and trying to keep my Excel checkbook up-to-date was nigh impossible.

Besides the whole fact that I had to reinstall OS X on my laptop and lost Excel on that computer.

Crystal from www.jewelfaerie.com Says:

February 28th, 2008, 23:21 pm

Regarding # 14:

When you declutter, don’t just throw that old stuff away. There are many ways to make money off of the things you already have, i.e., eBay, Craig’s List, Consignment shops and more. It’s also good to know which service to use to sell which items. For example, it’s easier to sell furniture on Craig’s List than eBay because it’s not really easy to ship. But it’s easier to sell name brand clothes/shoes on eBay because people search eBay for those things.

I have a list of these different services and what sells best on which here:
Jewelfaerie.com/6ways
(And if that link doesn’t work, forgive me, just click my name above…thanks!)

Take care!

Avrum Nadigel Says:

February 28th, 2008, 23:25 pm

Such an important post. And a nod to two of my favourite Jews:

a) Freud
“subconsciously perhaps”

b) Woody Allen
“Money is better than poverty, if only for financial reasons”

Leo, so many of your posts fall into the: “I know I should I do this… I know I should do this” category. Thank God my wife doesn’t read blogs.

Mike OD - IF Life Says:

February 28th, 2008, 23:45 pm

I’d add:

- Buy Used - as there are plenty of places to get used furniture, books, cars, CDs, DVDs, computers, clothing (well except underwear that is!)…and more. Whether garage sale or otherwise.

- Haggle all Prices - goes along with buying used, but there is no such thing as a set price, people will give you discounts (what have you got to lose?)…but you will never know until you ask for it!

Maura Says:

February 28th, 2008, 23:50 pm

I’ve been through the financial ups and downs a couple of times now… you’d think I would learn the lesson after having to scrape and figure my way out of the holes I’ve dug for myself.

But there are emotional drivers for my recurring bad behavior rooted in how I first learned about money saving, spending and borrowing. I am currently on a mission to examine the reasons behind my bad financial habits and improve my emotional relationship with money, so it doesn’t happen again!

Mej Says:

February 29th, 2008, 0:29 am

Thanks for this post. It’s extremely helpful.=)

http://fashiolution.com

Teresa Says:

February 29th, 2008, 0:37 am

As usual Leo, another great post, with lots of stuff I think about all the time.

Here’s a few other tricks that have helped me:

- I do my grocery shopping online. I set a budget for each “trip”. By buying online, I know exactly how much I’ve spent as I add things to my cart. I never overspend on groceries, even if I’m starving when I order. :-)

- I withdraw cash for work lunches at the beginning of the month. when I run out of cash, I have to bring food from home for the rest of the month.

Iris M. Gross Says:

February 29th, 2008, 1:28 am

Direct Deposit is your friend. You never handle your paycheck, and so you simply go to the ATM and draw out what you’ll need for the week.So as far as #1 goes, use cash, but hide it away with direct deposit, because if you don’t touch it, you don’t spend it!

About tip #3, staying home is a good idea if you already have a spouse. If not, #3 is lousy advice if you want to meet somebody!

There used to be a saying, “neither a borrower nor a lender be,” so #15 is in trouble from the getgo. I say borrow in moderation, and loan in moderation, as well. A small sum to allow a lesser-paid co-worker a meal from the cafeteria is money well spent. Someone did that for me, more than once, and I’ve since paid it forward.

I’ve bought things that have made me happy for several years - my car, for instance, which is attractive and has never left me stranded. Also my dinnerware. It’s a beautiful French blue plates that turns chicken and rice or even macaroni and cheese into a work of art. I enjoy eating on them every day, and I’m very glad I bought them. So, I guess to rebut #20, I’d say there’s nothing wrong with having a few things that you really get enjoyment out of, but I do believe it’s wrong to just buy just for buying’s sake. You end up with, well, crap you don’t use. THAT’S not happiness.

Mindstyle Says:

February 29th, 2008, 2:49 am

Leo,
Have been a regular reader of your blog and I have noticed that you don’t fancy plastic money. I would like to differ from you on this point of using cash and no cards. The reason is, the small interest that you get on your money.
I am not an american resident so I don’t use ING direct but my bank gives me interest for every cent that I have in the account everyday. As soon as my salary arrives on 26th of every month, flat 30% goes into the savings account, no questions asked. By end of the month, I have all bills paid from my salary account by automated system. On the evening of the last day of the month, I leave only what is regularly required to spend a month, rest again goes in savings account.
Now, I will use my credit card for whole month. Track my expenses every weekend (to make sure that I am within the limit and that saves your efforts of keeping extra excel sheets) and pay off that bill 10 days before the due date. ** By this way, I have earned the enough interest (3.5% APR) to pay my three monthly travel cards last year.***

** = Most of our banks do decent business, practices like cashing money late is not a preferred practice in this part of the world. I doubt if I will do this in the US, like paying when the due date is close.
*** = We are fans of our efficient public transport systems and bikes during the summer so that saves our USD 2+/ liter fuel.

Leo Says:

February 29th, 2008, 4:03 am

@Mindstyle … you’re right, I don’t favor plastic money. :) But that’s just been my experience — I think that credit cards make impulse spending too easy. That’s the reason they offer incentives to use them — because they want you to use them. That makes it so tempting to buy on impulse, even if you don’t have the money right now, and even if you don’t need it.

However, as I said at the beginning of the article, this stuff is just what works for me. Everyone has to find what works for them, and some people are able to use credit cards very well without overspending.

Thanks for your perspective!

Frank Dougan Says:

February 29th, 2008, 4:50 am

I think savings accounts are useless. The percent return barely keeps up with inflation which averages about three percent a year. Everyone should invest in index funds by selecting a fund that is appropriate for their level of risk tolerance and investment goals. In the long, and probably short run as well, this will cream a bank account’s return…

Jeff Says:

February 29th, 2008, 4:54 am

Leo! Great tips, thanks a ton. As a guy just graduating from college, I’ve looked to a lot of your suggestions to help build a nest egg before I’m unceremoniously dunked into the real world.

The online savings look like a boon; thanks a ton. Could you tell us what you know about the safety/insurance of these online savings groups? Thanks!

Matt @ Kurb Says:

February 29th, 2008, 5:26 am

Awesome post! cheers

Jelle - soChicken Lifestyle Design Says:

February 29th, 2008, 6:15 am

Plastic really works in my favor. Here in Holland we have the PIN system for paying (Personal Identification Number). I have an account at the Dutch version of ING Direct (Postbank) and here I receive all my money.

With the PIN card you can pay almost everywhere in Holland (and the rest of the EU as a matter of fact), and as soon as you press ‘OK’ the transaction is written off my account. So when I come home and login I get an up-to-the-second overview of my expenses, a automatic digital cash tracker. No expected bills at the end of the month, and the convenience of not having to walk around with cash (I really hate cash, it’s so ten years ago).

All my bills are set to automatic, my savings are set to automatic the day my money comes in. I use my credit card occasionally for international online purchases. For the Dutch web shops there is a online variant of PIN called iDEAL. Same principle, as soon as you click ‘OK’ (after first authenticating yourself, of course) the money is written off your online account. Very easy and direct. I don’t know if you’ve something like the PIN system in the states to pay direct, but I would recommend it. Credit cards are dangerous. ;-)

I have a variation on #2 that I use for some months now. On my ‘ING Direct’ I have made about 20 automatic payments into a separate savings account. These payments are set on different days of the month and vary from 0,80 Euro-cents to 7 Euro.

The idea behind this is this: I will never not buy a sandwich if I’m hungry and am at school. Second, I never feel guilty that I spent the 3 Euro’s on that sandwich. Third, I don’t ‘feel’ this few Euro’s in my bank account. I know 15 sandwiches a month add up, but it goes so slowly that I don’t notice it.

Now everyday I save a few Euro’s. I don’t notice it at all, but is quite some money each month. Sometimes I even forget I was saving that money, and after a few months it has become quite a lot.

So, instead of saving a set amount each week, I recommend saving multiple ambiguous little sums of money so you can’t easily calculate with it in your head. It’s kind of a surprise how much you’ve saved after some time. :-)

I’ve written an article about this on my website some time ago. It’s in Dutch: http://www.sochicken.nl/leven/spaar_onbewust_1000_euro.html

You can read it via Google Translate in (some form of) English: http://tinyurl.com/3xxxlf

Great article! Money is so important, and yet so unimportant. :-)

Priya Ranjan Says:

February 29th, 2008, 6:26 am

Very nice.. keep up the good work.

Jules ikeahacker Says:

February 29th, 2008, 6:34 am

Leo,
Would like to do the same - upload a simple spreadsheet to track my bank accounts on Google docs. As I am an debit-credit dud, do you think you can provide us a sample? That would be mighty helpful.

Kelly Rigby Says:

February 29th, 2008, 6:44 am

Lots of great ideas here, and I’m not sure I have anything new to add other than it can be helpful to keep an spending chart for 6-12months so you can see where your money goes.

This allows you to get together with your SO, evaluate your habits and decide what your finance goals are. Your budgets are then set on facts and your own values, and you’ll have a much better chance at achieving whatever your goals are.

Oh, I thought of another one too. Decide what your money values are. What does money mean to you? FREEDOM. PROSPERITY (buying stuff) or SECURITY.

This primary value needs to be responsibly honoured no matter what your circumstance. For example, if you need to feel free, you need to allocate small amounts to doing things that will make you feel happy and like you have choices.

If you like “nice things” then you need to allocate money to save up for splurges, and security conscious types will probably just be happy to see their financial circumstances improving.

Have a good weekend, everyone.

Kelly

Damien Guard Says:

February 29th, 2008, 7:26 am

The problem with tip 1 is that when you come to look at your spending in Money at the end of the month you have no idea where all those ATM withdrawals went.

Spending too much on groceries, snacks, fuel? No idea.

Putting it on a debit card is a good idea if you want to actually track and review your spending without having to scribble everything down in a book.

Great list though.

[)amien

Leo Says:

February 29th, 2008, 7:31 am

@Jules: To help you out, I’ve put a sample spreadsheet viewable to the public here:

http://spreadsheets.google.com/pub?key=pFPhq_YrpiaJV_KkddJ4COg

It’s not real numbers! Hope it helps!

Andrew Lim Says:

February 29th, 2008, 7:54 am

Wow, and I thought I was the only one who used Google Docs/spreadsheet to record down daily expenses.

It’s really convenient as long as you have internet access. Previously I used to store my expenses on a single computer, but it became more and more inconvenient as I use different PCs and operating systems often.

emma leigh Says:

February 29th, 2008, 8:46 am

my parents split when i was a senior in high school due to monetary reasons– so yes, communication w/your partner is the key!

i have to say, this site has helped me focus my energies financially and otherwise. i suffer from a lot of compulsion and have lately been hemmoraging money when i should be saving it. i’m definitely going to try to the 30-Day List today! thanks! =)

Edwin Says:

February 29th, 2008, 8:51 am

Remember to pay yourself every month and save it in a bank. Treat yourself as an employee.

Exercising at home is normal if you have the necessary equipments. Some people say they exercise at home with only a 5kg dumbbell. That is so wrong!

Stephen Martile Says:

February 29th, 2008, 9:25 am

You brought up a lot of good points.

Trish and I use the JARS Money Management System. Five JARS to Financial Freedom,

Play
Education
Financial Freedom
Give
Long Term Savings & Spending
Necessity

Stephen Martile
Personal Development Made Simple
http://www.stephenmartile.com

dokidok Says:

February 29th, 2008, 9:35 am

When we eat out, my wife and I always share the meal. Benefits you can get if you share the food in a restaurant:
1. You pay only half of the bill.
2. You don’t eat more than you need–>don’t gain wait–> decreased risk of CVD–>less money for expensive meds in future
3. Less time spend in the gym to burn the extra calories–>more time for other things (reading, watching dvds, Internet, making money, being happy)

Charles Says:

February 29th, 2008, 9:47 am

You forgot!! Read ZenHabits! ;)

Stephanie Says:

February 29th, 2008, 9:57 am

Yoga is a great exercise you can do at home. You don’t need any fancy equipment, other than a mat. It’s a way of using body weight to stretch, find balance, AND build muscle.

Some types of yoga are more challenging (i.e. more of a workout) than others. Ashtanga is a good one if you’re looking for some solid exercise. I would suggest starting out with a class to learn the basics. Or go to a class once a week and practice at home on the other days. It DOES help to have a teacher at first, but once you get used to the practice, it’s easy to practice at home. All you need is a little space, a little time and patience, and a mat.

Debby Banning Says:

February 29th, 2008, 9:59 am

I agree whole heartedly that spending cash makes you spend less. It hurts to hand over a $100 bill. It doesn’t hurt as bad to hand over your debit or credit card.

stephanie Says:

February 29th, 2008, 10:18 am

new one i’m trying this year is using my credit cards.

i know it sounds anti-saving, but i went last year with no balances and not using them; cash only.

this year, i’ve picked a card that earns cash back and at the end of the day i tally my receipts, round up (to dollar, ten dollar, whatever i can swallow for the day) and transfer that money from my checking to an interest bearing savings account that i don’t touch until the credit card bill comes in and the bill is paid in full. i’m earning cash back on my purchases. i’m earning interest on the money i ’spent’ for the month. because of the transfer i’m still very conscious of my spending and budget. and i’m slowly building a cushion of savings in the saving account by the round up.

now i wouldn’t have tried this until i spent the year disciplining myself to not rely on credit …

-s

Stacy Says:

February 29th, 2008, 10:21 am

The last one is the most important - finding your happiness. Once you have that, everything else (including money) falls into place.

Tosin Matti Says:

February 29th, 2008, 10:31 am

excellent post like usual I will definitely try the 30 days list.

JEMi @ InMyHeels - Tips for Life, Love, You. Says:

February 29th, 2008, 10:50 am

practical, simple, and oh so very true. I don’t know about this cancelling my cable talk :-P but I can attest to cooking at home and paying savings and debt first (excellent tip)

I am not much of an impulse shopper (I have my moments but far and few in between) but I can see how a lot more of these tips can be useful for one as well as for couples. When hubby was around, it was important to us that we not allow money get between us.

great post as usual :)

Jose Says:

February 29th, 2008, 11:00 am

Trent’s site rocks for financial stuff. I check it as often as I check zen habits. I started my ING account last year with the automatic withdraw for my car. I still have $1000+ and growing, it has paid for some car trouble and I didn’t feel a thing!

Also, I have another ’savings’ account set up besides ING. It paid for some home upgrades, which went up to $1,200ish. I felt nothing and I was able to do some great upgrades and get other minor utilities. Btw, this account has grown back to $600+ since last october.

In short, transferring money from your checking to another account works. Best of all, you learn to live without that money. The more you can put away, the better. If you look at your bank account online and see that you have little money, you will be more careful on what you buy. You are tricking yourself, the money is not gone, it’s just out of site.

Most importantly, do not check the balances all the time! Otherwise temptation sinks in.

Thanks Leo. I rarely post but I’ve been a loyal reader since April 2007.

Never the Same River Twice Says:

February 29th, 2008, 11:17 am

For a couple of years now, I’ve followed the advice in Your Money or Your Life to track every $1 I spend. It helps me stay very conscious of using my money (aka Life Energy) in productive ways.

This can be a little cumbersome, but I’ve been able to streamline the process by using Xpenser in conjunction with Jott. I explain more about my system in this post, for those who are interested.

Jaxs Says:

February 29th, 2008, 11:37 am

Oh m’gosh. Your Google Docs example is hilarious!

“Paycheck- Stud Modeling Service, $5000, Memo: my day job

BailBonds USA, $720, Memo: for that drunken night out on the town

Joe Ripsmeoff, $500, Memo: mechanic”

And I see you directly state “These are just sample entries — they’re not real!” Do people really think they are?!?!

Thanks for making us laugh while we’re learning.

Dan Says:

February 29th, 2008, 11:42 am

I saved around €60 a month by switching from coffee-to-go to tea I made myself. As a bonus I feel a lot better since I cut down on all that milk and chocolate bits on my cappuccinos.

A year and a half ago I made the best money & life saving decision ever - I quit cigarettes and saved around €240 a month and saved my life too!

e Says:

February 29th, 2008, 11:48 am

Another great way to save money (and lighten the burden on the planet) is to reduce your energy, water and fuel use.
Replace your lights with CFLs, turn off lights & appliances when not in use, drive less (walking & biking is great for your health too), take public transit, keep your car maintained for fuel efficiency, reduce the size of your lawn & water it less, plant native landscaping that requires little or no irrigation, if your have old toilets add a bladder inside to reduce water use with each flush, use less heat in winter & less AC in summer, etc.
The list could go on for pages here. Just think that if you could knock $5 each off of your electricity, heating/cooling, water and fuel spending (easy!) that’s $240 a year. And you can probably do much better.

Korey Says:

February 29th, 2008, 12:58 pm

All great tips. I especially liked #5 - Keep a 30-day list. Brilliant. It really makes you consider those purchases that seem like a good idea at the time. Usually those are the ones that you regret. “I don’t really need it but I want it.” Later you think, “Why did I do that?”

I’d like to add something from my own experience. Really simple. Keep a little notebook in your pocket. Every time you make a purchase, even for five cents, write that purchase down. The more aware you are of any behavior the more inclined you are to improve it. This works for spending habits or eating habits.

Cheers.

Chaunce Says:

February 29th, 2008, 13:01 pm

This is a great article. I have struggled with being financially responsible for years, and only recently have found things to do that work for me. I found a great FREE online resource call Buxfer (http://buxfer.com). After I started, I noticed that it helped me keep track of everything and had it at my fingertips via iPhone. I would highly suggest it for anyone looking for a free-and-easy financial tool.

I have been following your blogs for about a month now and I forward them on to friends and family all the time. You are a great source of inspiration.

Thank you!!!

Bill Says:

February 29th, 2008, 13:11 pm

To add to Marelisa’s idea. Coinstar machines (in most supermarkets) will take your change and turn it into cash–for a fee. But they do something else, as well. They will convert it into gift cards/gift certificates WITHOUT CHARGING THE FEE.

So you can convert your change into credit with Amazon, Starbucks, AMC Theaters, Borders, iTunes, etc.

I like to use this for my weaknesses. So I convert my change to a Starbucks card, and then use it to treat myself to coffee. When the card is empty, no coffee until I get that change. Or to a Borders card and use it to buy books. When the card is empty, no books until I charge it again.

It’s like getting free money to treat yourself and it keeps me from spending budgeted money on those kinds of treats. My plan for 2008 is to not buy a single book unless it’s with “change.”

Proseac Says:

February 29th, 2008, 13:21 pm

Great tips, Leo!

Regarding the suggestion by Mindstyle: I too pay all my expenses during the month with a credit card, then pay the whole balance off a few days before the due date. But to prevent the impulse spending thing, I deduct each charge in my chequebook as it happens, in a different colour ink, as if I’d actually made a withdrawal. So that money is accounted for and I never over-spend.

For example: one month I will use red ink, the next month green, and so on. “Real” debits from the account are in blue or black ink to distinguish from cc transactions. Every transaction that will appear on the next cc statement is in the same colour. When I pay the bill (through online banking), I just add up all the red or green items in the chequebook and that’s what I pay. I can access my cc account online to make sure I’ve not missed any charges.

Using this method I’ve accumulated “Air Miles” on my cc and earned more interest on my bank account at the same time. I cash in the Air Miles for gift certificates at a home improvement store, which I’m using to renovate my house, thus saving me even more money! :)

Kim Says:

February 29th, 2008, 13:25 pm

I track my money very simply on paper (in my Franklin Planner). I printed out sheets that have room to track the information I need (Date, is it a tax item?, transaction type, to/from, description, amount, and balance) and I have a page (or more!) for each of my accounts. Now, when I have a few extra minutes while waiting for my kids somewhere or at lunch I can enter the information. For me, turning on the computer would put me off. Now I can do the work just a few minutes at a time and keep up with it.

Faith Says:

February 29th, 2008, 13:28 pm

Wonderful list. I’ve been reading your blog for over a year now, and I’ve gradually implemented many of your frugal ideas. I have two more to add….

- Volunteer… Last year I started doing volunteer ushering at two local music festivals. I got to see about $1000 worth of concerts for free.

- Use the library… One by one, I gradually dropped my subscriptions to cable TV, Netflix, and all magazines. Now I go to the library each week to get my fix of DVDs, CDs, magazines, plus books of course. That’s a huge savings, and it cuts down on clutter, too.

Eugene (Editor, Varsity Blah) Says:

February 29th, 2008, 13:48 pm

Nice tips, Leo! I graduated with an honors degree in finance last year and my advice to everyone is to learn as much about money and the economy as you can. Read articles, watch financial news, and find great books to get you up to speed. I highly recommend Why Smart People Make Big Money Mistakes as a great place to start.

Another great resource is Yahoo! Finance. David Bach (from the Oprah Debt Diet) has a really good column there. One thing he recommends is paying your mortgage twice a month instead of once (e.g. pay $500 twice a month instead of $1000 once a month). 26 “half-payments” a year add up to 13 full payments. That extra month paid off each year will ultimately have your loan paid off sooner and save you a fortune in interest!

(http://www.varsityblah.com/calling-all-customers)

Andrew Says:

February 29th, 2008, 14:42 pm

@Eugene

I’m not sure how you came up with 26 half-payments. Where did the extra month come from?

Steve Says:

February 29th, 2008, 14:46 pm

I love zenhabits overall. It’s a great site. To be honest though this information seems pretty low brow. I expect a higher standar from this site and this post seemed kind of easy. You can get information like this anywhere and most people interested in “financial self-help” already know these things.

Television Spy Says:

February 29th, 2008, 14:57 pm

Good tips asides from not spending brazenly.

Brett @ Common Cents for Everyone Says:

February 29th, 2008, 14:58 pm

Excellent post! The only “hacks” I did not see were ones that impact positive cash flow. If you don’t supplement your “job” income, it will be harder to achieve the goals of your frugality. Just a short period of time spent working extra to pay down your debt, save a little extra, or save for a specific (hopefully positive) goal can pay off HUGE in the long run.

Mike OD - IF Life Says:

February 29th, 2008, 15:11 pm

I think another good addition is just learning to say NO to people and things. We don’t have to go out to dinner all the time, go to shows, go here and there, need new shoes, need something because of an ad on tv (dont these all just end up in closet somewhere?). We just pick what brings in true happiness and find other people of similar values. We have enough to be happy, but for some reason we always think we need more (could that be mass marketing on TV, magazines, and everywhere we look?). It’s all perspective.

Jonathan Mead Says:

February 29th, 2008, 15:21 pm

I think the most powerful thing we can do is change the way we view what we need. When we realize we don’t need as much as we think we do, we can really start saving money. This increases our happiness as well, because we realize the beauty of simplicity. We learn to appreciate what we have, instead of being bought and sold by advertising.

Reminds me of a song.. “adverising causes, therapy, therapy advertising causes therapy” hahaha.

http://jonathanmead.com - Authenticity, Clarity, Balance

racketboy Says:

February 29th, 2008, 15:35 pm

I saw never use cash if you can. I use credit cards on everything, but always pay off the balance each month. With my Discover cards, I usually make an average of $40 cash back each month because I use it on my routine stuff in addition to purchasing inventory for my business and everything in between.

Pamela Says:

February 29th, 2008, 15:37 pm

My number one tip to improve your finances is to give generously to causes you care about. You can call it karma or reaping what you sow, but when we are faithful to give, we ALWAYS have had enough money to pay our bills.
We’ve also had huge success using Dave Ramsey’s principles (most of which you’ve mentioned). We paid off $14K of debt and saved another $14K in 22 months by following his plan.

Eugene (Editor, Varsity Blah) Says:

February 29th, 2008, 16:01 pm

@Andrew. Sorry, that should have been a payment every two weeks, not twice a month.

So, let’s say your payment is $1000 dollars per month. That totals $12 000 per year if you pay it once a month.

But if you pay $500 dollars every other week, you’ll end up paying 26 times each year (52 weeks divided by 2). That will make the total $13 000 dollars per year (26 weeks multiplied by $500).

The extra $1000 each year gets “amortized” to the outstanding balance and the loan gets paid off sooner!

Kari Says:

February 29th, 2008, 16:14 pm

I found this article to be very interesting. Though changes in lifestyle are hard to do in the beginning, it gets easier. And there are ways to help with spending, saving, and budgeting. I like the UPside prepaid reloadable Visa card. Unlike a debit card from your bank (which many allow overdrafts, getting you into even more debt), you are only able to spend what you put on the card. You are able to fund the card periodically or automatically with allowance schedules, from family, friends and employers. And with multiple plans to choose from, you can find a card that fits you and/or your family’s lifestyle, as you can get the card for yourself or one for family members that are either already in need of debt-help or you would like to teach healthy financial living to, like your kids (as young as 13 years of age).

Kim Says:

February 29th, 2008, 16:28 pm

Steve and Eugene (and everyone else!) there’s a great company - Paymap - that will help you do the twice a month thing. What you can do, too, is make 13 mortgage payments a year and pay your mortgage off that much earlier. You end up paying far less interest overall because you pay the principle off that much sooner. Call them at 800-315-3218 to set it up. They’ll explain everything.

shaun Says:

February 29th, 2008, 16:50 pm

I believe everyone should take control of their finances. Too many people just spend their hard earned money on pointless stuff. What they should do is save and invest it.

http://www.stocks-simplified.com

Joie Says:

February 29th, 2008, 17:03 pm

Thank you for the great post.

Jason R Says:

February 29th, 2008, 17:39 pm

Maybe I’m just having a dumb moment, but is there a way to save the sample spreadsheet? I sure could use something like that, but I am not good with excel… which explains why I don’t have one like that already.
Thanks for the other great tips also. I just went and scheduled an auto weekly transfer like you suggested in #2. I used to do something like that at every pay, but I don’t know why I never thought about making it automatic!?!

David Parker Says:

February 29th, 2008, 17:57 pm

I’m a huge fan of the cash system and paying myself first. My wife and I do that regularly, and we need to, as she’s in grad school right now not working. So this helps just in case there is an emergency. Good post.

Rupal Says:

February 29th, 2008, 18:14 pm

Great post! I love number 12 and 20. Exercise at Home and Find Happiness in Life, Not in Spending. This is so true. So few of us realize that not spending money can bring about the same productive results. Our consumer mentality is to tell our friends/family that we are going to the gym, hence, we are active, working out and on our way to being healthy. It sounds as if we are committed because we pay gym dues. Now, tell them you are going for a walk or a run just sounds plain frugal. It works though! I have been walking for years now and have just recently committed to “learn” or train to run. It feels great. It doesn’t cost a thing which feels great and I remain green by utilizing my local park, trail, etc.

When you need a boost, shopping may make you feel good for a short time but the real happiness is in enjoying the simple things in life such as reading a good book, watching a great movie, soaking your feet in warm water with some fragrant oil and giving yourself a nice pedicure, you get the idea. There are a lot of fun things to do without spending money. I have tried them and felt great to not have spent money unnecessarily and felt in control.

Seorsa Says:

February 29th, 2008, 19:07 pm

My SO and I wlways fight about money. I ahve really been struggling the last few years ebcause we make so much money, but spend even more. We have paid off our credit careds through inheritence (twice) refinancing (once) and hard work (twice) in our 21 years of marraige.

Unfortunately she simply cannot talk about money without fighting. now I send a weekly email, and this seems to be a good way to talk without her getting pissed (and me defensive :)

I am trying to change her from saying “Why do we have so much money in the bank?” to “Why don’t we have more.

Also- learning to say no is an important step (whether to the spouse, kids etc). I ahte saying no and end up charging because I always think I can “work it out”

Stephanie Says:

February 29th, 2008, 19:26 pm

I have a question Leo about paying yourself and paying your debts first, and then paying your bills. When you say debt, are you talking about credit cards and loans? And do you mean that you pay extra towards those items? If I were to use this method, I would probably have nothing left to pay the the other bills. Sorry if I sound daft, but my bills aren’t static each month, and I need to tally and pay them before I think about putting extra money towards debt or into savings. We’re on a tight budget, so sometimes there’s nothing left to put in savings!

I also wanted to suggest that staying home is great, and eating at home is better … but inviting friends over for a potluck and game night is best! Thanks!

Monica Ricci Says:

February 29th, 2008, 19:43 pm

Leo, congrats again on the Real Simple list! Yes, I admit I’m jealous. :)

Great post. Money stress is one of the worst kinds to have, not only for an individual, but for a couple. Which is why my husband and I have separate money, with the exception of a joint account which we pay our JOINT expenses from, such as mortgage, utility bills, groceries, etc. We each contribute a set amount to the joint account every month, and everything else we keep separate. As a result, we never argue about money.

With us each keeping separate disposable income accounts, if he wants to spend money on something I think is dumb (like a new Playstation game), I don’t worry about it because he’s spending HIS money. Vice versa, if I want to buy something for myself that he thinks I don’t really need (like a new gun) he doesn’t get annoyed because I’m spending MY money. It totally works for us.

Great post, as usual, Leo!
~Monica

Kathryn Parsons Says:

February 29th, 2008, 19:53 pm

One vote for Quicken and other for fee programs is they auto download purchases from most major banks — made with a debit card, of course :-)

Once you set up categories and memorize your regular purchases, it is a huge time saver. I now only enter 25% (tops) of my monthly purchases, track every expense and reconcile my monthly statements in 15 to 20 min a week.

Plus, if I purchase like a credit card, then I get reward points. Doesn’t total up like airline miles but is a $25 gift card or so a month.

jeremiah Says:

February 29th, 2008, 20:18 pm

Library, cutting cable bill, driving a little civic.

Those are my top three money savers. My library has tons of new dvds and books. Cable is a waste for me anyways i mainly watch movies or watch shows online now, driving a fuel efficent car is a no brainer for me.

Chris Austria Says:

February 29th, 2008, 21:34 pm

I read somewhere or heard someone say that going eating less meat will save you money.

Leo–We all want to teach our children about money and how to take care of it. But, how would you deal with a teenager whose self-esteem is shot because he/she is being made fun of at school for not having the latest fashion trend?

rainer Says:

February 29th, 2008, 21:55 pm

I would like to add, don’t get buried in the feeling to have not enough money. It may support a self-fullfilling prophecy

What is going on, blog Says:

February 29th, 2008, 22:22 pm

I agree with your tips. At the end of the year the amount of money you save is so much. http://www.whatisgoingonblog.com

Kelly Says:

February 29th, 2008, 22:40 pm

Great tips! I hadn’t known about Google Doc’s before and thanks to Chaunce for the tip about buxfer.com. That looks really simple and great for my purposes.
I am loving your site.
Thank you!

Leo Says:

February 29th, 2008, 22:40 pm

@Kathryn Parsons: Good point, but in defense of my spreadhsheet method, it only takes a couple minutes for me to log in to my bank’s online statement (which I do regularly anyway) and then copy and paste transactions into my spreadsheet. I don’t enter most of my transactions myself either. :)

@Chris Austria: Self-esteem is a quite different matter from this article, but it’s still a great question. :)

Have you considered home schooling? My wife and I are about to start doing this with our kids. It removes a lot of the negative socialization found in schools.

Another important thing is for them to build successes, starting small. Have your teen do something with you, where they learn something, and become successful at it. A project, or a simple habit change. Start with something really easy, as success is important in the beginning. Once you’ve built a few small successes, you can build up to slightly bigger ones, until your teen has built up the confidence in herself to do this on her own.

Confidence is built through successes and competence, which is only built through actually doing things and learning and practicing. It’s best done at home, where you can help.

PENIX Says:

February 29th, 2008, 22:41 pm

Not bad tips, but the title is terrible. “Money Hacks”? Come on now.

Leo Says:

February 29th, 2008, 22:46 pm

@Stephanie: Yes, I think you should put extra towards debt, otherwise it will take forever to pay them off and you’ll be paying a lot of interest. If you have a tight budget, it may be exactly because you have a lot of debt payments. Take it from me, getting out from under debt is hugely liberating!

If you pay debt and savings first (even if it’s just a little extra each payday), you won’t neglect them. You’ll still find the money to pay your bills, but you might have to cut back on other spending areas (eat out less, find ways to save on gas, save on utility costs, do less impulse buys). If you pay your bills first, you might not make it to the debt and savings payments, which means you’ll be no better off than before.

I’m not saying this is easy. I know from experience that it’s very hard. But it can be done, if you set your mind to it.

Start by saving at least a small emergency fund — at least $500 at first. This will help in case something unexpected comes up, like your car breaking down.

Then focus on finding extra money to pay your smallest debt (or alternatively, the debt with the highest interest). Pay that off as quickly as possible, then put all the money you were paying that off with to the next debt, and so on until you’ve paid off all debts. Then increase your savings with these debt payments, then invest.

PVPost Says:

February 29th, 2008, 22:59 pm

Making money is a beautiful thing. Don’t listen to those believers who espouse the virtues of saving the planet with costly goods.

Free Annual Credit Report Says:

February 29th, 2008, 23:06 pm

Gotta disagree with Tip 1: Use Cash. I charge EVERYTHING to my AMEX Blue Cash card and get back around 200-500 dollars a month just for using it. If you have the cash to pay your bills, use the credit card instead and let the credit card companies pay you for spending. This, of course, will only work if you can pay off your bills in full.
Nick

philldo Says:

February 29th, 2008, 23:16 pm

Nice list and sample spreadsheet. i am going to look into the online banking thing. i thought about it in the past but never pursued actually researching it.

Add “Dpn’t subscribe to the dealmac RSS feed” to #4. When trying to save money, its probably not a good idea to subscribe to a feed with a tag line of “going broke by saving money”

Matthew Jacobson Says:

February 29th, 2008, 23:18 pm

What the f*ing sh*t is up with this overuse of the word “hack”? “hack” your ipod (w/ stickers!), golf “hacks”, myspace “hacks” (add animated gifs!). It’s stupid and an incorrect use of the slang. Listen:
incorrect: Jack used a glitter hack on his dog’s collar and now it sparkez!
correct: Jill hacked the NSA database.

Fred Says:

March 1st, 2008, 0:19 am

Heh - if you think your site design would have cost you $1000, then you are without a clue. Some good tips in here, however, they all have been said before, every year, all the time.

Wendy Stevens Says:

March 1st, 2008, 0:20 am

A big problem with the Internet is that everybody is an expert. The thing with these “Productivity Blogs” is that the authors write as if they are experts on *everything*. Leo, is there anything you DON’T have all the answers to when it comes to everyday life? Does an ability to write really give you the qualifications to act as financial counselor, relationship adviser, tech whiz, business consultant, on and on and on?

Everybody interested in standards, professionalism and other threats to our ability to sort through the difference between amateur opinion from educated advice should read Andrew Keen’s book: “The Cult Of The Amateur.” A book for our times.

Andres Santana Says:

March 1st, 2008, 0:47 am

Very simple but useful tool to track your expenses http://buxfer.com/

Chris Austria Says:

March 1st, 2008, 0:48 am

Wendy–What part of Leo’s post is inaccurate and amateurish?

Kelly Says:

March 1st, 2008, 0:51 am

I’m excited that your family will be homeschooling, Leo. We have always homeschooled (the oldest of my four kids is 14) and it definitely goes a long ways toward allowing us to focus on what really matters.

:)
Kelly

Wendy Stevens Says:

March 1st, 2008, 1:18 am

@Chris Austria: I don’t want a tit-for-tat, but really you make my point. I’m not a financial-type person either; so how do I KNOW that the advice is sound? The catch-all “productivity blogs,” are written by people who seem to be able to dish out advice on just about anything and everything - yet have no credentials or training in most areas they right about. Leo is a good writer, no question. But, a good writer does not an expert make. Look at the topics he writes advice, tips, etc. on - they are very broad. Is he really so highly educated in all these areas that he has the ability to offer *accurate* advice on (fill-in-the-blank)?

Your question to me is the problem. Take today’s post for example: How do I know if the advice is good if I don’t know what Leo’s background, training and education is on financial matters? When you read the Wall Street Journal you know people are writing that KNOW economics, when you read a book from a clinical psychologist with a practice in children’s psychology you KNOW they have some idea of what they’re talking about. On and on in whatever field you choose. But with these blogs (especially Leo’s as he’s such a good writer) you really don’t know how qualified they are to write about all these broad topics across the board.

This is all discussed in depth in Andrew Keen’s book mentioned in my post above - which I know has been controversial in the blogging community - yet spoke to my concerns in a very serious way.

Wendy Stevens Says:

March 1st, 2008, 1:20 am

In the first paragraph above, I obviously meant “write” and not “right.” Sorry.

Miguel Wickert (Pineiro) Says:

March 1st, 2008, 1:43 am

Thanks for a post like this, especially when so many people are in debt these days. Great practical tips! Tip 17 about on-line savings, I’m interested in opening up an on-line savings account. If you have anymore resources or tips about this, I would love to know about it! Thanks!

oakling Says:

March 1st, 2008, 2:03 am

I have found a lot of these to be very useful, but right at the beginning and the end I had a few twitchy moments. I hate the idea of “tricking yourself,” and I think it’s interesting that particularly with finances people often talk about doing that by putting money into savings before you miss it or other things that “don’t hurt” - like saving money is supposed to hurt and if you can do it in a way that doesn’t, you’re fooling yourself.

And then that last one - “Find happiness in life, not spending” - is just madness. It’s not wrong, it’s just not a tip or a trick. If people are having problems with money, telling them to find happiness in life is just gibberish. It’s like if someone wants to climb a hill and you suggest, “Get up to the top of the hill.” It’s not a way that you get to good finances, it’s an effect of the journey.

Warren Says:

March 1st, 2008, 3:07 am

Nice entry. Not only does cooking at home save you money, it is also quite relaxing and therapeutic after a stressful day of work. =D

JC Says:

March 1st, 2008, 4:08 am

Telling people to use cash is bad advice. You’re better off opening an account that pays interest and keeping your cash in there. Use your credit card to pay for as many things as you can then pay off the balance at the end of the month.

You’ll get points AND earn the interest on your money. Of course, you have to stick to a budget (using CC makes this easier to track) and you have to pay off your balance in full every month.

If you have to use cash to create “pain” for yourself because you don’t have enough discipline to manage your spending, then you can pretty much rule out ever becoming wealthy.

Also, here’s another BIG tip: MAKE MORE MONEY. You can do this by becoming disciplined, motivated, and working hard. Also, having a positive attitude is a huge plus. It’s much easier to attract money or to find happiness in life when people like you.

CHRIS: I would teach your child to how to deal with the situation. Pulling him or her out of school teaches them that when the going gets tough, you run. Learning how to deal with these types of social situations determines, to a large degree, your success in life.

You should help your kids deal with it or they should get part time jobs and buy whatever clothes they want. I made money starting from age 12.

Good luck. :)

Anon Says:

March 1st, 2008, 5:04 am

Are you jewish? Out of interest…

Kay Says:

March 1st, 2008, 5:19 am

One word:
http://www.retailmenot.com

Blah Says:

March 1st, 2008, 5:42 am

This list of “Hacks” are a rehash of what other people with more economic/financial experience have been doing for years.

Even though you don’t claim these “hacks” as your own, you don’t specifically say where these “hacks” came from either.

Someone who is not well read may mistake them as your own original “hacks”.

KC Says:

March 1st, 2008, 8:50 am

Simple but effective tips! Great post. The 30 Day sanity check is a great idea. Check this link for a related post and free spreadsheet to track your daily expenses:

http://lifeapps.wordpress.com/2008/02/29/do-you-really-know-where-your-money-is-going/

Nick Says:

March 1st, 2008, 9:31 am

I use ING to implement a version of your envelopes approach, but on an longer-term basis instead of a weekly basis. ING lets you have multiple accounts within one username/password, and open them ridiculously easily.

I have been using ING since 2003 for a weekly transfer of 2% of my annual my property taxes. Last year after a buying spree, I started transferring an additional amount every other Friday to a different ING account. It started off being called “Electronics Purchases,” but now is called “Discretionary.”

When I buy a item more than $50 that is just a fun thing, such as a new ipod nano before my vacation to Australia, I transfer the money back into my checking account, and use that to pay my AMEX. The funny thing is that even though I have the cash on hand now, I don’t use as much of it.

The other thing I do is self-insure almost all of purchases instead of using an extended warranty. If a place offers me a warranty, I decline and instead transfer that much into a “Self-Insurance” savings account. If a “discretionary” purchase doesn’t offer a self-warranty, I transfer in 10%.

trini kid Says:

March 1st, 2008, 10:03 am

Thought I’d point out that its more of DISCIPLINE and PLANNING. Also there are checking accounts out there that give you interest on your money, like National City Elite Checking… But with the Fed dropping rates like rain, who knows what interest rates will be in the future.

About credit cards… I personally have 3 credit cards with about 40k combined limit… Now you’d think I’d be over my head in debt. Two of them ALMOST NEVER get used. The third one is my regular every day card. Not to mention have a couple business cards with over 100k+ combined limit, and I trust my business partners to not over spend and we never have.

Some key things:
1/ Check credit card activity online everyday if possible, but at least 2-3 times a week, it takes all of 3 minutes for the most. That way you can nip a fraudulent transaction really early on… The little transactions also add, up and seeing how much you have spent helps

2/ DISCIPLINE yourself. If you know you only have 2000 in cash, and you need 800 of it for car insurance, you might want to keep 750 for some sort of short term emergency, then you have 450 to spend. DO NOT COUNT ON FUTURE cash in flows, not even your paycheck. It is not your money and in your power till you have it in your bank. Also that 750 is not your emergency account everyone talks about, but more like fun emergency, like if your cousin tells you he’s getting married in 6 weeks and you need to be there… happened few months to me.

3/ Actually I rarely walk around with cash, that way when I know i login online, 99% of my money is there, save for the 1-50 dollars in my wallet.

4/ Credit cards have rewards and there are FEE FREE cards with these rewards. For example chase BP, with 5% back on gas. Or Citi Professional. Just do a google search, and you’ll find it. Using cash and not using credit cards with rewards is simply throwing away money. I have gone on lots of flights paid for with rewards , and will soon be buying a new macbook pro solely with credit card rewards. So why use cash and give away free rewards?

5/ Unless you know what you’re doing STAY AWAY FROM STOCKS. Granted if you feel like losing some money that you don’t know to do what with, go learn with some experience. Remember with stocks, it will go up and down all the time, do not panic on the first drop, or sell on the first up…

Bonus : Risk… More you take the more you gain… Also the more you will lose, yes you WILL lose at some point, happens to the best of the best (trump, buffet).. Overall you should gain but you may have individual losses. Find your tolerance for risk, how much you can afford to lose. And remember measure everything in percentage, not dollars. If you can watch your money drop by 50%, great, you have lots of risk tolerance, because you know your money my just go up to 400%

Nuff said.

Will only do so much... Says:

March 1st, 2008, 10:12 am

Penny pinching, saving, and cutting your expenses will never give you the life that you dream of.

Budgeting and saving are the ABC’s of first grade finance - the equivalent of what a five year old learns at school. You need to learn them as quickly as possible so that your real education in money can begin.

Then (and the sooner the better for you) you will realize that to really get ahead… you need to focus on making more money.

Learn to Draw Says:

March 1st, 2008, 10:29 am

If you watch DVD’s instead of videos, try buying boxsets or dvd lots on ebay to save money. After you watch them, you can relist them back on ebay and pretty much get your money back.

RingtoneExplorer Says:

March 1st, 2008, 11:03 am

When I first saw this, I had to “hack”… I mean… read this, but it has nothing I haven’t “hacked”… err… seen anywhere before. I have to “hack”… I mean bury this as lame. (Wow, it’s catchy!)

Chris Austria Says:

March 1st, 2008, 11:47 am

Wendy–Point well taken. Thre are so many stuff on the web that it’s really up to us to decide which one to take and which one to discard. Even experts and professionals have conflicting views and data. That’s why more so than ever, we all have to be well informed.

JC–The question is actually not for me. I just wanted to get Leo’s perspective. But, you and Leo have made excellent point. My site mentions what I do. Thanks for the input.

Will Says:

March 1st, 2008, 12:32 pm

I don’t think you know what the word “hack” means.

Rachel Says:

March 1st, 2008, 15:54 pm

There is a lot more to having a healthy relationship with money than just having more of it. Please don’t get me wrong — poverty is one of the worst things in the world, and to get out of it you need both good offense (making money) and good defense (not spending too much of it, which is what this post seems to be mostly about).

However, once you are at the point where money isn’t the limiting factor in life, there’s a whole new set of skills to be learned: how to invest instead of just letting money earn the amount to be had in a savings account, how to learn to LET yourself spend the amounts that are “safe” to spend instead of turning into a miser and never enjoying the fruits of all that scrimping and saving, how to use money for things that enhance happiness instead of simply piling up mounds of stuff, etc.

All the points in this post are essentially good points, in that they are helpful to some, and I’ve used variations on all of them over the years. However, some of them just stop making sense after a certain point. The “barter” technique doesn’t help anymore when time, not money, is the commodity that most limits your life. Cooking for oneself doesn’t help anymore when good food is available for free at work (granted, this one may only apply to a few people). Many people have already noted that using cash is a nice way to not earn interest on money, and it also keeps one from building up a good credit rating.

This post is nice as a beginning. I’d like to ALSO see one on how to live happily with money once one is above the poverty line.

Miguel Wickert (Pineiro) Says:

March 1st, 2008, 16:12 pm

trini kid, what credit card would you recommend for a college student? This will be his first credit card. Thanks!

JhayAnn1 Says:

March 1st, 2008, 18:21 pm

Regarding tip #10, I have lousy math skills + short term memory loss, which gives my hubby good ammo if/when we argue about finances. I needed something easy & even more basic than a spreadsheet, something short of me keeping receipts & entering them later.

I carry my PDA with me everywhere I go, so I use a freeware called MyCheckbook (quickster.com). You can enter your expenses right there on the spot, and you don’t have to do the math! That means, no need to keep receipts or remember to enter them later, no need to count on your fingers, etc. The software also keeps stats, so you can see which categories you drop the most money in, like eating out or cigarettes.

Now, we pay bills first thing - right off the bat, every month. Most of it are fixed expenses so it’s easier to budget for. We use recurring online bill pay to take care of it, so it’s never late & never forgotten.

As for our semi-flexible spending, rather than starting with our account balance & deducting from there, I budget an “income” or deposit on my PDA of $25 per day. That’s roughly $175 a week, or about $700 a month.

From this, I have to “save” enough to buy groceries, which is roughly once a week. This curbs my temptation to buy extras like the brand-name ice cream & such. This basically means that my spending desires will have to wait until the money is there. Sometimes just knowing that I have to wait 2 days to save up $50 helps me change my mind when buying things that I thought was important at the time. I use this method on everything except the bills & gas.

This method in my opinion, is easier on forgetful, non-mathematically inclined folks like me. It has worked well for us so far!

Ken Says:

March 1st, 2008, 20:36 pm

There’s an alternative to online savings accounts. It’s called high yield reward checking. Many small banks and credit unions around the nation are offering these. Over the last year reward checking yields are holding up better than online savings account yields. There are a few catches, but they’re not too bad. This BankRate article has more details

http://www.bankrate.com/brm/news/chk/20071105_reward_checking_a1.asp

Miss Gisele from myBeautyMatch.com Says:

March 2nd, 2008, 0:26 am

Being on top of your finances makes a lot of sense and reduces your stress.

In the end it’s all about having a healthy life and that sometimes mean that you’ve got to know how to say “no” to expenses that make no sense and that will cause you more harm than good in the long run.

That’s really good advice Leo!

Gisele

Alex Says:

March 2nd, 2008, 1:13 am

Great tips. I’ve been keeping track of my expenses via SMS using xpenser.com . I’m amazed what I actually spend money on. I also went back and looked over all my bills; my cable bill, for example, was much higher than I’d expected, so I cut it out.

Hood Workout Says:

March 2nd, 2008, 10:20 am

Great solid advice, I enjoy the exercise bits and would encourage those.

Hu Says:

March 2nd, 2008, 10:21 am

Good stuff. People need to be aware of what they are actually doing and this is a good start in awareness.

Trey Says:

March 2nd, 2008, 14:25 pm

this is really good!….i need that formula i cant figure it out

Ralph Says:

March 2nd, 2008, 17:32 pm

I think the ultimate money tip is to have a daily conscious practice of gratitude for what you have RIGHT NOW. Even, and especially if that is very little. The feeling itself of gratitude IS wealth in the truest sense. If invoking the feeling of gratitude is difficult for you there is very good and liberating material for you to explore and that exploration will pay you a better rate of return than any investment out there.

Peace All!

Elizabeth Says:

March 2nd, 2008, 18:55 pm

Great tips. I am newly (but happily) “unemployed”. Where our family had lots of disposable income for the past ten years we now have really none. My biggest tip is now “re-gifting”. Not in the usual sense of getting gifts and then giving them to someone else, instead I purchased many small pieces of art and “knick knacks” over the years. Now they make great gifts. They are all really nice and the beauty never gets “used up”. And this is allowing me to simplify my life. It also makes me really happy to give these things to other people I love.

Saravana Perumal Says:

March 2nd, 2008, 21:57 pm

Awesome, i simply love #2

Amber Says:

March 2nd, 2008, 23:34 pm

The envelopes are genius! Never heard of that method before. My fav is #20. Buying things will never make us happy.

Gowen Says:

March 3rd, 2008, 1:06 am

The spreadsheet idea is excellent - I do that myself via Google Docs, and it allows me to organize the job of paying down debt. (We got there by violating many of the items on this list!).

One thing I would add, is that there is a free spending tracker called Expensr (https://www.expensr.com/). Most banks allow you to download your transactions in Money or Quicken format, which you can upload into Expensr. First you manually file things into bins, and as you go it handles a lot of that automatically.

The advantage is, you can easily see how much you’re spending on a particular bin (e.g. food, or the sub-food bins of groceries and restaurants). You create all the bins, so you can tailor them to your situation. As you get all this data entered, you look at the report page and it creates a pie chart showing the allocation of money. Click on any one segment (e.g., food) and it shows you where that money has been spent.

A useful tool, especially as upkeep is easy once you get the categorization down.

Leo Says:

March 3rd, 2008, 6:02 am

Wendy Stevens wrote:

“Leo, is there anything you DON’T have all the answers to when it comes to everyday life? Does an ability to write really give you the qualifications to act as financial counselor, relationship adviser, tech whiz, business consultant, on and on and on?”

This is an excellent question, Wendy! For more info, see My Story as I address this issue here.

Basically, I don’t claim to be an expert at anything at all (well, maybe writing — see my Write To Done site for that). The stuff I write about here is just what I’ve learned, what works for me, what my experiences are. I often, often state that they won’t work for everybody, and that you should give them a try and see what works for you.

However, I will say that I’ve gotten really good at certain things, including creating new habits and meeting my goals. Again, see My Story for more info on this, but while I’m not an expert on this, I have learned a vast amount of useful stuff that I try to share with you guys.

As for my experiences with finance, I am certainly not an expert, by a long shot. I have, however, pulled myself out of financial trouble, incrementally reduced my debt and now have eliminated it, stuck to a budget after years of failure, doubled my income and now quadrupled it, and have saved up a sizable emergency fund. This qualifies me not as an expert, but as someone who has been in the trenches.

Thanks for allowing me to clarify! :)

Gard Tuur-Eggesbø Says:

March 3rd, 2008, 6:42 am

Excellent post, I had to follow it up myself at http://dihturnoaidi.blogspot.com/2008/03/better-personal-finances.html

But I don’t use cash as much. Instead I have my debit card on a different account than my salary comes in. The benefit of that is that I usually have only an appoximate number in my head when I go shopping, and I don’t want to be stuck in an embarrasing situation at the checkout line. So towards the end of the month, I get more and more careful about my spending.

Mark Orr, Certified Financial Planner Says:

March 3rd, 2008, 10:23 am

That’s pretty good advice and many of the commentators
had good advice as well such as ING Direct and Harv Eckert’s book.
For most people, Debt is the worst enemy your finances can have. There are ways to get out of debt quickly and even paying off your mortgage in about 12 years - maybe less. Never stop looking for ways to easily improve your finances — especially in times like now.
mark

Baba Says:

March 3rd, 2008, 13:58 pm

I don’t plan how I will spend every dollar. If I have to be on my best behavior 100% of the time to stay on my budget, I’m likely to have an off day.

What I like to do is pay myself first. In addition to automatic investments (401K and taxable), I have set up a separate checking account to save monthly for my periodic large expenses, a la Mary Hunt’s Freedom Account (http://www.mdmproofing.com/iym/freedom.html). I use a spreadsheet to subdivide funds in this account into multiple sub-accounts. So I save a bit every month for my semi-annual car insurance payments, next year’s Roth IRA, my next car purchase, etc.

Setting money aside at the beginning of the month for these regular and irregular large expenses requires that I be disciplined only once per month, rather than continuously throughout the month.

Web design company Says:

March 3rd, 2008, 16:18 pm

We’ve also had huge success using Dave Ramsey’s principles (most of which you’ve mentioned). We paid off $14K of debt and saved another $14K in 22 months by following his plan.

Jean Says:

March 3rd, 2008, 17:17 pm

Leo,

Thanks for the smile! After reading your spreadsheet more carefully, the humor sank in - never takes me longer than an hour to get it :-)

All the best,
Jean

Pete Says:

March 3rd, 2008, 17:24 pm

Great tips.. posting a link!

Angela Says:

March 3rd, 2008, 19:37 pm

Leo I always like reading your posts and perked up when I saw this one about money. However my biggest issue with money is that I earn very little. I would like to earn more (and I am very careful with the money I do earn). I currently run my own business but I would like to get a part-time job to supplement my income. I’d be happy with minimum wage. However the biggest barrier I’ve found to getting this employment is that all the employers I approach require super flexibility in terms of availability of hours but won’t commit to specific days or times or number of hours - so basically they want you to be available for them with no commitment on their part. I’ve not pursued any work offers under this arrangement as essentially I would have to give up my existing business as I wouldn’t know what hours I would be ‘free’ to do my own business work (I teach yoga classes). For example, a hardware store I approached recently was looking to employ someone for about 10 hours a week to begin with (although these 10 hours were not guarranteed) and the worker would go in on days and times to suit the store - the hours increasing as it got busier with the spring months. I found myself wondering who could possibly be in a position where they could take such a job with no guarrantee of the number of hours on offer and with the specific hours and days changing from week to week. I was talking to a friend about this recently and she has managed to string several part-time jobs together with difficulty for exactly the same reasons. I would love any thoughts you have on this.

business money person Says:

March 4th, 2008, 1:32 am

I will commence the taking of your advice, right… now. After I charge the Alpine car audio system. JK. Simple but easy tips. Thank you.

James Simpson Says:

March 4th, 2008, 12:20 pm

I always run any online purchases through http://www.bestshopguide.co.uk before buying anything.

Make sure I’m not paying too much!

James Clark Says:

March 4th, 2008, 13:27 pm

In regards to #17 - online savings accounts, Jim at NetBanker just reviewed a new site called SmartyPig. You can get an access code from him to set up an account. Got my free account - set up a goal already. Very cool
Check it out:
http://snipurl.com/20yle [www_netbanker_com]

Miguel Wickert (Pineiro) Says:

March 4th, 2008, 16:33 pm

I’ll check it out!

Art Says:

March 5th, 2008, 0:56 am

I’m always looking out for ways to lower costs. I really liked your 30 day list. What a good idea! My rule is wait one day, but I like the 30 day approach even better.
Thanks!

Toan Nguyen Says:

March 5th, 2008, 14:34 pm

Number 14 is important and often over looked. Fend shui and balance can lead to an uncluttered mind.

Miguel Wickert (Pineiro) Says:

March 5th, 2008, 19:35 pm

I agree with Art, I really like your 30 day list. I’m going to start using this rule. I’ll let you all know how it goes!

sue Says:

March 6th, 2008, 16:25 pm

So I think you put a great point across in your article.

Me Says:

March 6th, 2008, 22:08 pm

It is also good to wait 30 days because after thirty days of sale, a product may lose popularity and the shop will lower the prices, and you may want to keep a week’s worth of your expenses, so you don’t go buy 30 items that are on sale for 10$ each, plus keep in mind how much you have already

Mihaela Says:

March 12th, 2008, 11:37 am

Thank you Leo for this interesting post!
To help with #5, I’ve created a spreadsheet for putting things on hold for 30 days. Feel free to download it, share it and use it as much as you can.
http://www.romanianbrands.com/living_in_RO_colors/2008/03/12/20-de-sfaturi-pentru-finantele-personale/#english-version

SingleGuyMoney Says:

March 22nd, 2008, 18:38 pm

These are great tips for managing your money and improving your finances. I’ve started doing automatic weekly savings deductions and it is amazing how fast your savings can grow with regular contributions.

Jacqueline Says:

March 31st, 2008, 10:41 am

I especially appreciate #17, online savings, I will be checking out those leads. Even though some of the other poins were not new to me, it is always good to be reminded as we often let things we already know slip. Great list!

Meg Says:

April 6th, 2008, 17:28 pm

Re 1: I prefer to use debit rather than cash, because it makes it insanely easy to keep track of my expenses (yeah, I keep the receipts, but a little redundancy in the system never hurt anyone). I find it easier to keep track of how much I’ve spent by calculating how much (pre-tax) I can spend before I hit my upper (post-tax) limit for the shopping trip/outing/whatever, and then add up in my head how much I’ve spent so far. I actually end up spending less than my limit most times because I’m lazy and round everything up to the tens digit, and then I think I’ve hit my limit before I actually have. The extra money gets dumped into a savings account. :)

FIRE Finance Says:

April 7th, 2008, 11:50 am

This is a fantastic post about paving a way towards secure personal finance.
We cited it in our Sunday Review as one of our favorites. Needless to say but keep up the excellent blogging :).

Cheers,
FIRE Finance

Chris Says:

May 15th, 2008, 10:55 am

I’ve thought of a new way to save more money at the grocery store. Before when I would find a coupon online, I would print it and use it. Recently the bright idea of printing the coupons and then copying them came to mind. Most websites with grocery coupons will only let you print them once and then you’ll have to wait until they say you can print again. Well now, I print the coupons and make a couple of copies for the next time I need them and keep them till they expired. I make copies of the coupons for things I buy everytime I go to the grocery store and that way I can compound my savings. Last week I saved $18 dollars off my grocery bill. Not much but I’d much rather have that money in my pocket than in Wal-mart’s.

Check out my blog at

http://www.savethatmoney.blogspot.com

Mike Says:

July 11th, 2008, 23:50 pm

I’ve been meaning to start putting money into my savings account. I keep thinking I’ll just spend less and let it sit in my checking account, but if I put it in savings I know I won’t touch it.

Tim Says:

July 12th, 2008, 11:16 am

Really great list. Thakn you!

Sergio Altomare Says:

July 14th, 2008, 15:38 pm

Also check out http://www.mint.com It’s a great online financial snapshot site run from advertising. It gives a great picture of how money is being spent and consolidates account information with only the need of your login credentials to the sites. Best of all, it’s free.

What is going on, blog Says:

July 31st, 2008, 10:01 am

Great tips on savings and spending. A person can save a lot of money with those tips.

Pictures of Miley Cyrus Says:

August 2nd, 2008, 4:22 am

Wow. I was happy to run across this post. I’ve been constantly reminded the past few days of how much of a cheap skate I am.

I save my money to no fault, that’s for sure. I’ve never even opened up a credit card account. I figure if I don’t have the money, I don’t need whatever it is I want.

rapid fre controller Says:

August 19th, 2008, 16:16 pm

Great advice, Sometimes the smallest things can make the big differance when trying to beat the credit crunch.

toshiba copiers Says:

September 17th, 2008, 7:12 am

Great post. Any way to save money is a way to try!

The Geared Investor Says:

October 14th, 2008, 14:37 pm

Very thorough list. I need to try #14, but I’m a big fan of #16 and #17 also. It blows my mind when people are baffled by the fact that these tips work. I think most of my readers should come read this.

Ray The Money Man Says:

October 28th, 2008, 0:28 am

The small weekly transfers works for me when saving money. That is how I add to my investment accounts to. I know some people would say that sometimes it is to small of amounts to be worthwhile. They would be wrong, goes unnoticed and since I use ING Direct Online you never fool with it!

Great post!

Adam Web Hosting Saver Says:

November 10th, 2008, 4:00 am

While shopping online search for coupons and promos this can really save you allot of money.

usdfinance Says:

December 9th, 2008, 1:32 am

I personally was able to finally create my emergency fund by doing one thing, which is stopping impulsive buying altogether.

Hopefully it will be complementary to the articles to share how I do exactly that

aio-holic Says:

January 3rd, 2009, 10:05 am

wow..
I think it’s so interesting to read this post.
I think I’ve got some inspiration about money..
whatever….
it’s great post..

Scootah Says:

January 3rd, 2009, 21:29 pm

If you have debt, I don’t understand why you have savings.

With the possible exception of your mortgage (and even then, only if you have a well negotiated mortgage IME) - no savings or investment schene on earth reliably or consistently pays returns that compare to the cost of debt in the modern credit market. The occasional stock buy or financial roulette spin might pay out enough that it was a better investment then just paying off your savings - but it really is a wild gamble on long odds.

Pay off your debts, with the possible exception of your mortgage, then work on squirreling some money away. 5 years from now - your balance sheet will look a lot more positive.

Store Crowd Says:

April 8th, 2009, 0:59 am

I’d always thought that staying in & watching Cable TV would help you save money (since you’re not going out & spending it on clothes or food etc). May also be the reason that companies like Netflix etc are thriving in the current economy.

Deposit Accounts Says:

April 16th, 2009, 17:07 pm

Great list. Several of these suggestions will save you a lot of stress and provide you with more free time in addition to the money savings.

Lisa Says:

June 11th, 2009, 6:20 am

Great tips! really smart one!

Morten Dahl Says:

June 15th, 2009, 23:22 pm

Thank you for sharing us with the above tips. It’s really useful for everyone.