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The Best Advice for Saving as Much as You Can

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https://twocents.lifehacker.com/the-best-advice-for-saving-as-much-as-you-can-1821196524

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The Best Advice for Saving as Much as You Can
There's one question I hear as a personal finance writer more than any other. It's not how to game the stock market, or become a billionaire-it's simply how to make a budget work while still saving enough to retire comfortably.

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Understanding personal finance

It is possible to make a budget work while still saving enough to retire. It starts with learning to change your habits so you can put money aside.

It is not that easy to make any sort of rea...

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Knowledge is power

When it comes to money, people will do whatever they can to get hold of your money, regardless of how it will affect you.

Don't rush into any sort of decision making. Always consult a second ...

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Automate anything you can

Assuming you have enough to cover the bills and aren't pulling an overdraft fee, start by automating your retirement savings. You know you need an emergency fund, so automate. Do the same with incr...

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Finances are bigger than your paycheck

Our personal finances don't exist on their own. They are connected to the economy and government laws and regulations. It all is as much part of your finances as to how you spend and save your payc...

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Train yourself not to adapt

We have this idea that if we just make a certain amount of money, we're going to do great. But it doesn't work like that. We find ourselves always adapting our spending and lifestyle to our income....

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Save a percentage of each paycheck

Put 10 % away from each check you receive to create a cash buffer for emergencies. Try and increase it with time.

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Get started

  1. Start early. The more time your money and investments have to grow before you need them, the more money you’ll have all things being equal. Every little bit counts, even to only to get into th...

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SIMILAR ARTICLES & IDEAS:

Keep everything as simple as possible

The more credit cards you have, the more chances you have for identity theft and the more chances you have to miss a payment. The more investment accounts you have, the less attention you can give ...

Don’t ever let your “future self”...

...take care of your current situation.

Your future self might have more income, but it’s also fairly likely that your future self might have less income and you’ll find yourself in a really bad situation. 

Even if your future self is doing well, there are probably going to be other big expenses that you’ll want to deal with at that time, like buying a house.

Focus on...

  • Building an emergency fund: set up an automatic weekly or monthly transfer from your checking account to your savings, then leave the savings alone until an emergency appears.
  • Eliminating high-interest debt: Set up a simple debt repayment plan by organizing your debts by interest rate, then attempt to make a double payment on whatever debt has the highest interest rate.
  • Saving for retirement: It will actually end up being a much smaller burden than you expect,  lifted up by the pleasure of knowing that you’re securing your retirement.

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Side Hustle to Make More Money

You don't have to sacrifice all of your free time to start a side hustle, use the time you’re comfortable with and make a little bit of progress every day. 

Take Action

Get to working on improving your finances today, not tomorrow. Reading the steps and thinking you’re capable of doing it but postponing it is just an excuse, an unprofitable one.

Communicate With Your Partner

Talking about your financial goals, and scheduling time once a month to go over your finances together can prevent money from affecting your relationship.

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Investing

... is the trading of your money today for a lot more money in the future. It is a high yield over the long term.

What happens to your money

Banks don’t like to give away their money. That mindset is reflected in the interest rates of checking and savings accounts of 0,5% and 0.9% avg. annual interest respectively.

When you deposit your money in the bank, the bank turns around and invests that money at 7% a year or more. After they collect their profit, they give a tiny shaving of it to you.

Portfolio and Diversification

  • Your portfolio reflects your long-term wealth building investment strategy – not the short term. It includes everything you own. Your retirement accounts, your investment accounts, even your home are types of investments.
  • Diversification is a way to describe owning multiple types of investment assets. Diversification is smart because you both protect yourself from failure and position yourself to take advantage of multiple robust methods for building wealth.

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