Saving Money 101
Personal finance doesn’t have to be complicated. For example, at its core there are only two ways to increase your savings:
Make More Money
Spend Less Money
Here are four common money traps people fall for and how to rethink these habits to maximize your savings:
Gambling/Sports Betting: Taking a free bonus bet and quitting afterward is one thing, but I see far too many people pouring money into betting every week. Sure, occasionally people win big but I’ve yet to meet someone who consistently comes out ahead. It’s generally a smarter ‘bet’ to save your money and watch it grow in a low-cost index fund.
Not Using HYSAs: If you’re still using a brick-and-mortar bank account paying you 0.01% APY, it’s time to upgrade to a high yield savings account (HYSA). I keep almost all of my non-investment cash here. Why? Because the accounts I use are FDIC-insured and have paid me over 4.00% APY in the past year — that’s 400x what many traditional banks offer. Discover offers a safe, easy-to-use option. Below is my full-length video review for Discover Online Banking:
Food Delivery: I get it—sometimes that $35 Papa John’s order at 1 AM feels like the best decision ever. But I challenge you to take the extra 15 seconds to check your fridge first. Chances are, you’ll find something to make yourself that’s healthier—and costs nothing extra!
Impulse Purchases: You know those products for sale by the checkout? They’re placed there on purpose. Retailers use psychology to trigger impulsive buys since by the time you reach the checkout, your decision-making is fatigued. This results in a higher likelihood of consumers making purchases. Though often inexpensive, these purchases can add up over time. Unless you absolutely need the item, just stick with what’s in your cart.
Need a Budgeting App to Help Reach Your Financial Goals?
I recently converted to a budgeting app called YNAB. If you’re tired of losing control of your money and want to see real progress made, click here for a free 34-day trial.
Latest YouTube Video:
Jack Bogle’s Simple Rules For Investment Success: Check out 6 beginner-friendly investing lessons from the legendary, Jack Bogle (Founder of Vanguard).
Your feedback and suggestions are always welcome, so feel free to let me know what you think!
Keep Saving,
Steve | Feasible Creative
"Do not save what is left after spending, but spend what is left after saving." - Warren Buffett
Disclaimer: The content provided in this newsletter is for informational and educational purposes only. It is not intended to be a substitute for professional financial advice. Please consult with a financial advisor before making any financial decisions.
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