To wrap up 2019, we are sharing 9 simple tips to create financial momentum for a new decade:
#1
Cancel at least one streaming service subscription you could temporarily give up (calm down, it’s not forever). You likely have 3+ different streaming services and you can only watch so many shows at once. Turn off netflix for 3 months and focus on Amazon Prime, or vice versa. Or cancel HBO since Game of Thrones is over. Share with a friend to encourage a financially better 2020!
#2
Turn your thermostat down and put on a jacket. Maggie keeps her house around 66-67, and Mike keeps his at 69. Kids wear t-shirts and shorts when it’s 45 degrees outside, so they don’t care about the temperature in your house. It’s often the adults you’re trying to make comfortable. Put a jack on or cozy up under a warm blanket. Also, definitely keep it even lower while you’re sleeping and not home. Investing in a Nest or other programmable digital thermostat will pay for itself over time, so consider getting one if you don’t have one.
#3
Give a donation to someone who needs it more than you. This might seem counterintuitive to reaching financial freedom, but in the end we believe the more you give the more you get. Choose a charity, organization, or person you know that needs some help, and give $ or something they could use. It will make them feel good, it will make you feel good, and it will make the world a little bit brighter. And perhaps it will give you a little benefit on your 2019 taxes, but do it regardless. Mike’s favorite charity is The Nature Conservancy and Maggie’s is The Humane League.
#4
Make your money work for you. Decide on your level of comfort and risk, and if the amount of options are overwhelming to you then start with something simple like Wealthfront, Betterment, or a total stock market index fund to get started. And at the very least, all of your cash should be sitting in a high yield savings account (try wealthfront or American Express).
#5
Eat at home vs going out. It’s better for your health, your wallet, and it saves you time. Eating at home is a habit you can build just like any habit. It gets easier over time and if you stock your house with yummy things to eat it’s that much easier. And then when you do eat out, it’s a special treat and you choose more wisely or it’s a social occasion.
#6
Get rid of stuff! Do the 30-day Mins Game, read Marie Kondo’s Life Changing Magic of Tidying Up, read one of Joshua Becker’s books, or whatever you need to do to inspire letting go of things you no longer need or value. Also, consider selling items that have a value of $25 or more on eBay, a local neighborhood Facebook group, or Poshmark.
#7
Re-negotiate a bill or two. Do 5 minutes of research and figure out the other competitive rates on some key expenses, and then call your existing provider and say you’re going to cancel—they’ll give you a better rate. You might even decide to cancel and switch if they won’t budge, but most of the time your existing provider will try to keep you. We just changed a Verizon cell phone to a pre-paid plan and went from $100 a month to $40 a month – same provider, no loss of features, just $60 less a month. This could be you!
#8
Teach your kids responsible lessons about “stuff” and money. Remember, you’re the adult and you’re in charge. You can say no when they ask you to buy them something they don’t need. There may be a tantrum, but you can handle it. You are teaching them limits. Also, have open and honest discussions with your kids about money. Kids are never too young or old to have these conversations. We’re doing a full episode on kids in 2020, so stay tuned. And if you don’t have kids, talk to a friend or partner and for fun, talk to them like they are a small child, adults love that.
…And for our final of 9 tips to create financial momentum for a new decade…. 🥁
#9
Increase your 401k contribution by at least 1%, or even better, max it out to the $19,500 limit for 2020. This might feel hard, but just consider things you could re-prioritize to make this a reality. Your future self will thank you. If you feel like there’s no way you can increase your 401k, please send us a message and we’ll help challenge your thinking and hopefully identify some potential areas of savings you may not have thought of.