I enjoy things that are money-related. I like finance magazines, tv shows like Flip This House, and books, such as The Total Money Makeover, by Dave Ramsey.
Because I have an interest in finance, I also like to maintain control over my personal finances. Three easy ways to do this are to have a change jar, clip coupons, and allocate part of your paycheck into a savings account.
Set Up a Change Jar
Having a change jar might sound silly when the goal is to retire a millionaire, but I can tell you that having a change jar is worth it.
All you have to do is make sure you always carry cash instead of relying on credit cards (a tough habit to break) and put the day’s change into the jar when you get home. I use a plastic gallon container.
I’ll put singles into it as well and they come in handy. When my wife and I go out on a date I’ll usually just go into the change jar, pull out all the singles, and dinner and movie is taken care of.
Last week we went on a short vacation. I cashed in my change at the grocery store and came out with more than $100. Sometimes it’ll be twice that.
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Clip Coupons and Keep the Difference
Clipping coupons is one habit I’ve yet to fully adopt, but know that I need to, because not clipping coupons is like paying extra.
When I order sneakers online I always look up discount codes. The same goes for holiday shopping.
If you were to save just $5 a week that you’d previously thrown away, the difference would be $260, or, for some families, a free week’s worth of groceries, which may make lean months less so.
Allocate Money Into a Savings Account
I have a Roth IRA. It’s a savings account that takes income that’s been taxed and then when it’s time to pull it out, I can withdraw the whole thing if I want without worrying about tax consequences.
When I started my Roth IRA I was 25. This might sound like I was really on the ball, but I only had $25 put into it each month. A year later I raised it to $50.
The money is going into an account I won’t touch for 40 years. And since it’s being taken out of my pay before I get it, I shouldn’t miss it so long as it’s an amount that is appropriate to the rest of my budget.
The first two methods help with everyday money. Clipping coupons and having a change jar make my life easier when I might not otherwise have a hew extra bucks. My Roth IRA will make a big difference later because while I’m hoping to tie up the majority of my retirement in real estate, having money elsewhere may make a huge difference later.
