Are the flashy financial apps that promise the world just not working for you? Maybe it’s time to go back to the basics. Old-school money-saving techniques might sound strange, but they’re coming back and saving people thousands. Let’s take a closer look at seven blasts from the past for better money management.
The Envelope System
If you aren’t a fan of traditional budgeting, you might love the envelope system. This is where you use multiple envelopes, usually in different colors or with labels, where you put cash for each budget category at the beginning of the month. If the cash is gone when you reach for it, it’s gone for good.
The 50/30/20 Rule
One of the tried-and-true budgeting methods is known as the 50/30/20 rule: budget 50% for your needs (rent, utilities, and groceries), 30% for wants (going out to eat and hobbies), and the final 20% for savings and debt repayment. It’s a simple, easy-to-remember formula that promotes mindful spending and helps you save for future goals!
Let Go of Luxuries
Do you indulge in the finer things maybe a bit too much? Adopting a more frugal mindset doesn’t sound revolutionary, but living below your means almost always means more financial security and peace of mind. It’s less about giving things up and more about prioritizing a lifestyle that focuses on saving, investing, and steering clear of debt.
Make It Yourself
One of the most common financial strategies from the past is to get creative with what you have. A DIY mentality saves money while also encouraging resourcefulness. Whether it’s making greeting cards by hand or sewing a button, these seemingly small purchases or expenses add up. So put your financial future into your own hands: literally!
Negotiate To Save
Negotiation seems like a lost art, but it’s a priceless skill that could lead to a better price on a car or a bigger salary. People are often shocked to learn how much they can save simply by asking. Sure, it’s awkward at first, but remember: the worst they can say is no, so why not give it a whirl?
The 30-Day Rule
Impulse buys are the Achilles heel of many budgeters. But it’s even worse for larger purchases. For these, we recommend the 30-day rule, a rule where you sit on a potential purchase for 30 days before buying. If you’re still thinking about it, it might actually be worth it. But will you still be thinking about it? Nine times out of ten, you won’t be.
Investing in Yourself
Here’s one of the best and oldest pieces of advice: invest in yourself. Education is the key to unlocking many doors in your life. It could be as simple as taking a course or reading a book; upskilling is becoming one of the most important things you can do in an increasingly competitive job market. So don’t be afraid to spend a little on your education. Just think of it as an investment!
Read More:
