Want to know the secret to getting rich?
It’s a lot simpler than you think, and you’ve probably heard it before. But, odds are, you’re still not doing it. Here’s the trick: spend less than you earn. Yes, that’s it. But, as obvious as it is, it’s still hard, so here’s how successful people manage to do it better than you.
Sell Your Vehicle
This is something that most people won’t do, but it yields big gains and can help you pay off debt fast. Most people will look at you funny when you tell them you sold your vehicle. But, smart and successful people aren’t afraid to do this to raise cash quickly.
You can always carpool to work, walk, or rely on one vehicle. If you work out of the home, then you’d be surprised to learn that it might be cheaper to just use a ride-sharing service. You’ll also save money on insurance, month after month, as well as other car-related expenses: gasoline and maintenance.
Most people who do this figure out a way to get to and from work that isn’t onerous or time-consuming. The only time it might be a pain is for those rare times when an emergency happens. For example, if something happened at work and you need to get home quickly or you need to pick your spouse up, you may be left with few options.
But, this is also why the car rental business and ride-sharing exists.
If your student loans are killing you with high interest rates, maybe it’s time to refinance them. Figure out whether it makes sense to consolidate them. While this isn’t the be-all-end-all, it will save you a substantial amount of money if you can lower your rate just a few percentage points.
If you do find a good loan consolidation option, it will pay off every month. And, that’s money you can save and invest.
Take Advantage of Balance Transfers
This is another way to save money on your debts. If you have a bunch of credit cards, you can save money on them by transferring the high balances to a low interest accounts. The best balance transfer cards offer perks like a 0% APR for a set number of months. Usually it’s 12 or 18 months.
This should give you sufficient time to pay off the debt and move on to saving more money.
When you’re paying 0% interest, it’s much easier than if you have to fight with the interest payments every month.
Request A Credit Card Rate Reduction
If you have decent credit, you may be able to get a rate reduction. Call up your credit card company and request it. They may say no but you’ll never know unless you try.
Install A Programmable Thermostat
A programmable thermostat lets you change the heating and cooling of your home when you’re not home. Smart thermometers, like Nest “learn” your ideal temperature and optimize savings at the same time by making small adjustments to the temperature that you won’t notice.
Lawrence Bell works as a financial consultant. He’s also a Dad of 3, with another on the way and knows how challenging it can be to manage the cashflow for families. His personal finance articles appear on multiple blogs, he hopes they’re useful to you!