While some aspects of being an adult are amazing, such as having a drink and staying up late when you want, there are other elements of adulthood that are far more boring. In fact, the various responsibilities of being an adult can soon begin to take their toll and leave you feeling like the joys and freedom of childhood are nothing but a distant memory. This certainly applies to financial responsibilities as making sure you have enough money to cover your costs while also trying to save for the future is often tricky. However, there are some financial tricks you can use to make life simpler. Here are ten tips to help you restore your inner child.
Use Mental Trickery to Save and Invest
People often find it hard to save or invest money because they feel like they are giving it away when they could be using the money for something in the present day. One way of overcoming this hurdle is to trick yourself into saving and investing in such a way that you barely notice it is happening. Acorns is an interesting app that can help you do this. Every time you make a purchase using a credit or debit card, it will round up the cost to the nearest dollar and put your change into an investment account. As you will never save more than one dollar at any time, you will hardly even notice this is happening.
Use an App to Make Smart Financial Decisions
Many people find it difficult to make sound financial decisions. Using an app such as MoneyLion can help you to do this. It connects to all your accounts and offers personalized advice based on your earnings, spending, and debts. It also has a reward scheme.
Earn Money from Receipts
Few people realize that they could earn money by saving their receipts. There are several cashback apps, such as Ibotta, that have offers for specific areas or for certain stores. If you take a photo of your receipt, you can earn cashback on the qualifying purchases. This is another way you can save money with hardly any effort.
Shop Around for Car Insurance
Far too many people are paying way too much for their car insurance. There are some fantastic deals out there, so it is not necessary to continue using the same insurance company simply out of habit. Shop around on a comparison site to find the best deal for you. The same applies for your homeowners insurance.
Start an Emergency Fund
All too often, it is life’s emergencies that leave us high and dry financially. An unexpected cost can cause havoc with your finances. The best way to prevent this is by setting up an account and putting a little away in it each month. This can then become your emergency backup account and prevent you from suffering should you need to spend money unexpectedly.
Refinance Your Loans
One of the biggest financial problems people in the United States face is paying off loans and this often starts with student loans. Many adults find that they are still paying off their student loan two decades later. By refinancing, it is probable that you will get a lower interest rate on your loan and pay it off faster.
Save Your Tax Refund
When you get a tax refund, the temptation is to blow it on something fun or exciting. However, a better financial decision is to save this money. Either put it in a savings account, invest the money, or use it to pay off debt.
Choose a Credit Card with Rewards
When you have a credit card, you will usually pay back more than you have spent due to interest rates. However, if you choose a credit card that offers rewards and cash back on your purchases, you will reduce the overall cost of having a credit card.
Invest in Real Estate
People often think that you need to be rich to invest in real estate and dismiss the idea of doing this themselves. It is now possible to invest in real estate via companies such as Fundrise Starter Portfolio with an initial investment of as little as $500. These companies spend the money of others on real estate investment and then share the returns.
Make the Most of Your Retirement Savings
Although retirement may still seem like a distant dream, it is important to start planning for your retirement well in advance. Now is the time to take a good look at your 401(k) account and make sure you have the right mix of stocks and bonds. Try using an investment advisory firm, such as Blooom, to make sure you are making the most out of your savings account.