And maybe idiots. Idiots fail to understand things as a matter of their defining characteristic.
Traveling costs money, as does food, health care, education, entertainment, clothing, transportation, housing, utilities, security, convenience, loan interest, phones, and internet. Money can buy political sway, enhance social standing, advance technology, make the world a better or worse place, and (arguably) make a person more attractive. Money enables the creation of art. Life expectancies are higher for the wealthy, and quality of life is substantially higher on average.
Perhaps I should have started with a list of what money cannot do. That list is shorter.
Despite all of the great and tremendously useful things that money can do, a lot of folks don't have much of it, myself included. The little I manage to scrape together just tends to evaporate like some sort of cruel magic trick.
Further evidence to support my theory that rich people are wizards.
So, what can be done about that?
1. Make more money.
Making more money is perhaps the most obvious suggestion possible as to how someone can improve their financial situation. Unfortunately, this is often not the simplest option, if possible at all depending upon the situation. And even when the option to supplement incomes comes along, it is often accompanied by additional expenses.
As I assume Ghandi or someone else known for being wise famously said, "mo' money, mo' problems." Oscar Wilde, maybe?
But here are a few options, assuming you have a full time job already:
a) apply for a part time job
b) apply for a better paying job
c) try to negotiate a raise from your current employer
d) get an education so you can get paid more in the future
e) sell things you don't need or use
f) monitize your social media (like how this blog uses Google Adsense)
g) do online surveys for a little extra cash when bored
h) refer friends to companies you've done business with that offer referral bonuses
i) try to take whatever talents you might have and market them to strangers (in person or internet business, like through Etsy, eBay, Amazon Marketplace, Craigslist, or whatever)
2. Spend less money.
Folks who spend little to no time looking into their own personal finances waste ridiculous amounts of money, like with subscriptions to rarely used services or by paying more for the same thing at convenient, well-advertised retailers.
Here are some key tips for how you can spend less:
a) Monitor spending
Similar to how weight loss experts encourage calorie counting, you should definitely try to record every cent you spend. I personally use Mint, a very detailed and advanced software tool for monitoring spending. You can even set budgets and categorize expenditures to see what kinds of things money is being spent on.
I discovered that I spend WAY too much on coffee. While not a total surprise, the sticker shock motivated me to seek lower cost alternatives to regular $5 Starbucks lattes.
b) Prioritize entertainment expenses
Video games can be very expensive. The systems or computers used to play them cost hundreds of dollars. A new individual game runs up to $60 (or more with DLC). Online games often require subscriptions and higher speed Internet access. Accessories aren't cheap, either. Plus, resale value for used games generally sucks.
So, what can be done about that?
1. Make more money.
This is what money someone literally made themselves might look like. I don't mean counterfeiting currency, although technically that may be a (terrible) option.
Making more money is perhaps the most obvious suggestion possible as to how someone can improve their financial situation. Unfortunately, this is often not the simplest option, if possible at all depending upon the situation. And even when the option to supplement incomes comes along, it is often accompanied by additional expenses.
As I assume Ghandi or someone else known for being wise famously said, "mo' money, mo' problems." Oscar Wilde, maybe?
But here are a few options, assuming you have a full time job already:
a) apply for a part time job
b) apply for a better paying job
c) try to negotiate a raise from your current employer
d) get an education so you can get paid more in the future
e) sell things you don't need or use
f) monitize your social media (like how this blog uses Google Adsense)
g) do online surveys for a little extra cash when bored
h) refer friends to companies you've done business with that offer referral bonuses
i) try to take whatever talents you might have and market them to strangers (in person or internet business, like through Etsy, eBay, Amazon Marketplace, Craigslist, or whatever)
2. Spend less money.
Folks who spend little to no time looking into their own personal finances waste ridiculous amounts of money, like with subscriptions to rarely used services or by paying more for the same thing at convenient, well-advertised retailers.
Here are some key tips for how you can spend less:
a) Monitor spending
Similar to how weight loss experts encourage calorie counting, you should definitely try to record every cent you spend. I personally use Mint, a very detailed and advanced software tool for monitoring spending. You can even set budgets and categorize expenditures to see what kinds of things money is being spent on.
I discovered that I spend WAY too much on coffee. While not a total surprise, the sticker shock motivated me to seek lower cost alternatives to regular $5 Starbucks lattes.
b) Prioritize entertainment expenses
Video games can be very expensive. The systems or computers used to play them cost hundreds of dollars. A new individual game runs up to $60 (or more with DLC). Online games often require subscriptions and higher speed Internet access. Accessories aren't cheap, either. Plus, resale value for used games generally sucks.
Purchasing older games, non-subscription based games, or just finding a less expensive way of having fun are all solid ideas. There are even a fair number of free games out there that can run on about any platform.
Cable, satellite TV, and premium channels, will burn through a paycheck very quickly. Hulu, Netflix, and Amazon Prime can serve as lower cost alternatives, each with tons of quality stuff to watch. There are even free alternatives available. (See projectfreetv.so - although there may be annoying ads or legal/ethical issues involved with that). Perhaps you have a relative with premium cable? If you can borrow their account details, you can watch online under their account (see e.g. HBO go)!
Protip: buying a movie is a really poor investment and kind of a waste of money. If you just love collecting or owning films and you don't mind the cost, that's cool. I'm not judging you.
Going to movie theaters can be expensive, but really fun. Same with going to concerts or other kinds of live performances, as well as many other kinds of things. Obviously you wouldn't want to ruin your life for the sake of pinching pennies, but there are ways to cut costs when going out. Eating before a show or game (or getting your drink on before going out) can cut near-universally outrageous concessions costs.
The key to reigning in your entertainment expenses is to just simply monitor them, create a budget, and prioritize your fun. Refer above to point (a).
c) Reduce Food/Drink Costs
Cooking at home is generally the cheapest way to eat, so long as you aren't buying super expensive ingredients and totally ignoring sale prices. Delivery is NEVER a good idea from a financial standpoint. Fast food is terrible, but if you have to, check out the dollar menu.
Every once in a while, everyone goes to a restaurant, perhaps for a date or to meet some friends. Fancy cocktail menus should be avoided, unless you are okay with dropping the cost of a month's groceries budget for a single night of indulgence. Some knowledge of drink mixing can be useful for having cheap (yet still tasty) drinks made at a bar from much more reasonably priced well liquors. Beer is usually less expensive than wine, especially beers on tap or on special.
Cable, satellite TV, and premium channels, will burn through a paycheck very quickly. Hulu, Netflix, and Amazon Prime can serve as lower cost alternatives, each with tons of quality stuff to watch. There are even free alternatives available. (See projectfreetv.so - although there may be annoying ads or legal/ethical issues involved with that). Perhaps you have a relative with premium cable? If you can borrow their account details, you can watch online under their account (see e.g. HBO go)!
Protip: buying a movie is a really poor investment and kind of a waste of money. If you just love collecting or owning films and you don't mind the cost, that's cool. I'm not judging you.
Going to movie theaters can be expensive, but really fun. Same with going to concerts or other kinds of live performances, as well as many other kinds of things. Obviously you wouldn't want to ruin your life for the sake of pinching pennies, but there are ways to cut costs when going out. Eating before a show or game (or getting your drink on before going out) can cut near-universally outrageous concessions costs.
The key to reigning in your entertainment expenses is to just simply monitor them, create a budget, and prioritize your fun. Refer above to point (a).
c) Reduce Food/Drink Costs
Cooking at home is generally the cheapest way to eat, so long as you aren't buying super expensive ingredients and totally ignoring sale prices. Delivery is NEVER a good idea from a financial standpoint. Fast food is terrible, but if you have to, check out the dollar menu.
Every once in a while, everyone goes to a restaurant, perhaps for a date or to meet some friends. Fancy cocktail menus should be avoided, unless you are okay with dropping the cost of a month's groceries budget for a single night of indulgence. Some knowledge of drink mixing can be useful for having cheap (yet still tasty) drinks made at a bar from much more reasonably priced well liquors. Beer is usually less expensive than wine, especially beers on tap or on special.
Don't forget: water is always good. And although it may not be as much fun, everyone appreciates the designated driver.
Most grocery stores will have coupon deals or price matching services of some kind. If you are able to take the time, you can save a lot by careful shopping. Extreme Couponing levels of commitment are not required to shave off hundreds of dollars per year.
d) Pay Bills Smartly
Cell phone carriers work very hard to try to snipe competitors' customers away. Make sure you know all of the charges and fees involved, but switching carriers has the potential to reduce costs by a significant margin. Don't forget to factor in where and how much you use your phone, or else risk overage charges and chronic dropped calls.
Some companies offer incentives for establishing electronic bill delivery and auto-withdrawals. These can lower monthly payments sometimes or provide you with other incentives. Keep an eye out for special offers like these.
AVOID FEES. Do not pay bills late. Do not overdraw your bank accounts. If you do accidentally make one of these mistakes, however, all is not lost. Companies will sometimes forgive penalties if you call their customer service lines and explain the mistake.
Credit cards can have extremely high interest rates. Pay off credit cards before you put money into savings or pay off installment loans (auto, home, student loans, etc.), and pay off higher interest cards before lower interest ones. Banks may lower interest rates on cards every six months to a year if you call or submit a request online based on improvements to your credit score.
Some cards will offer low or no interest introductory rates that go WAY up if you don't pay the balance off within a certain amount of time. In the words of Admiral Akbar, "it's a trap!" Making minimum payments will still result in huge fees. Do everything you can to get these things paid off before promotional deadlines pass.
Sometimes if you threaten to cancel a service or go to a competitor, you can get more favorable rates. This is especially common in the telecommunications industry (e.g. cable, internet, phones), but this may be an option for other kinds of businesses too. It never hurts to try, provided you have the time to wait on the phone for a couple hours.
e) Quit buying stuff you don't need
Also pretty obvious, but really hard to do.
I like to imagine all of the things I want but can't afford before I spend money. Like, a trip to Italy.
1. See thing I want to buy. Oooh, fancy shampoo. This looks nice.
2. Think about unobtainable thing I really want to buy. Do I want to purchase this fancy shampoo if it means I can't go to Italy? No. I think I will put this fancy shampoo back.
3. SAVINGS ACCOMPLISHED.
Conclusion
Those are just a few tips for getting personal finances under control. It is by no means a comprehensive list, but just a couple of ideas that I've found useful either through my research and personal life experiences.
Most grocery stores will have coupon deals or price matching services of some kind. If you are able to take the time, you can save a lot by careful shopping. Extreme Couponing levels of commitment are not required to shave off hundreds of dollars per year.
d) Pay Bills Smartly
Cell phone carriers work very hard to try to snipe competitors' customers away. Make sure you know all of the charges and fees involved, but switching carriers has the potential to reduce costs by a significant margin. Don't forget to factor in where and how much you use your phone, or else risk overage charges and chronic dropped calls.
Some companies offer incentives for establishing electronic bill delivery and auto-withdrawals. These can lower monthly payments sometimes or provide you with other incentives. Keep an eye out for special offers like these.
AVOID FEES. Do not pay bills late. Do not overdraw your bank accounts. If you do accidentally make one of these mistakes, however, all is not lost. Companies will sometimes forgive penalties if you call their customer service lines and explain the mistake.
Credit cards can have extremely high interest rates. Pay off credit cards before you put money into savings or pay off installment loans (auto, home, student loans, etc.), and pay off higher interest cards before lower interest ones. Banks may lower interest rates on cards every six months to a year if you call or submit a request online based on improvements to your credit score.
Some cards will offer low or no interest introductory rates that go WAY up if you don't pay the balance off within a certain amount of time. In the words of Admiral Akbar, "it's a trap!" Making minimum payments will still result in huge fees. Do everything you can to get these things paid off before promotional deadlines pass.
Sometimes if you threaten to cancel a service or go to a competitor, you can get more favorable rates. This is especially common in the telecommunications industry (e.g. cable, internet, phones), but this may be an option for other kinds of businesses too. It never hurts to try, provided you have the time to wait on the phone for a couple hours.
e) Quit buying stuff you don't need
Also pretty obvious, but really hard to do.
I like to imagine all of the things I want but can't afford before I spend money. Like, a trip to Italy.
1. See thing I want to buy. Oooh, fancy shampoo. This looks nice.
2. Think about unobtainable thing I really want to buy. Do I want to purchase this fancy shampoo if it means I can't go to Italy? No. I think I will put this fancy shampoo back.
3. SAVINGS ACCOMPLISHED.
Conclusion
Those are just a few tips for getting personal finances under control. It is by no means a comprehensive list, but just a couple of ideas that I've found useful either through my research and personal life experiences.
Most importantly, never stop educating yourself on personal finance and consumer protection issues. A wealth of info is out there, some more useful than others.
And do not pay for money management advice! Folks who advertise that are tricky tricksters trying to take your money, and may even be scammers themselves (especially online ones). There is plenty of free advice online and through various state institutions.
Good luck, folks.
Good luck, folks.
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