We are all looking for an awesome life hack, some way that we can improve our life with simple changes. Maybe you even started brushing your teeth in the shower to save time and be more proactive. But life hacks are not all about productivity. Check out these 15 financial planning tips to hack your finances.
- Sign up for your 401k as soon as possible and increase your contributions by 1% every six months until you max out on your annual contribution amount (or at least the amount matched by your employer). Incremental increases like this allow your spending to adjust over time without you feeling quite as big of a pinch if you tried to start contributing at your maximum amount.
- Set up your mortgage payments on bi-weekly payments to save on interest. Disclaimer: Not all mortgage companies will do this so make sure yours won’t just hold the partial payment and instead will apply it to the loan. If they won’t apply a partial payment, you can get the same savings if you make an extra monthly payment to principal of 1/12th of your mortgage payment.
- Set up automatic contributions to an investment account. Again, a small amount that is automatically whisked away to an investment account will not be as difficult to adjust to than if you set aside money to invest a few times a year “when you have some extra cash” (which is code for “never”).
- Sign up for life insurance and disability insurance through your job.This way the payments come out of your paycheck before it hits your bank account,so you don’t even miss the money. And it protects you and your family in case of death and disaster, both pretty good things to be protected against.
- Put all your regular bills on a rewards-accruing credit card. That way you only have to make one payment to the credit card company and you get cash back or airline miles for purchases you would normally make anyway.
- Set up auto-contributions to your savings account to build your emergency fund. You can divert a portion of your paycheck into your savings or set up a monthly transfer from your checking account to your savings. Either way, it will automate your savings so you don’t forget to save and you will have cash in an emergency.
- Plan your meals in advance so you don’t spend extra money on take-out or delivery. You can sign up for a meal planning service like eMeals or you can simply jot down what you plan to make for dinner each night of the week on a Post-it note, then be sure to get those needed ingredients when you grocery shop over the weekend. That way you don’t come home after a long day of work too tired to figure out dinner and end up ordering pizza, again.
- Use your local library for free movies and books. You can browse their selection online and reserve a few movies and books you are interested in, then swing by and pick them up. You can also check out ebooks and audiobooks from your local library through the Libby app.
- Budget for 1 or 2 vices or special treats each month (Starbucks, a dinner out, a craft beer, donuts) so that you don’t feel you are depriving yourself. That way you can still enjoy a small treat but stick to your budget and financial goals.
- Make charitable giving a family affair. Set aside a small amount each month to give to charity and have your children choose the organization or cause you will support. This instills values of giving and compassion which will reap a lifetime of benefits, even if it only costs you $10 each month.
- Review your monthly bills to look for savings using a service like Trim or Truebill. These companies scan through your bills and negotiate with your subscription services for a lower price, plus they can help you identify subscriptions you may no longer need or use.
- Get to know your health insurance plan and always check if a doctor is in-network before scheduling an appointment. Chances are you have no idea what your deductible or specialist copay amount are, or what hospitals in your town are in-network. Review your health insurance plan to get the gist of what is covered and what isn’t, what your expected out of pocket costs are, and which doctors you can see that are in-network. Scheduling an appointment or testing with a out-of-network provider could cost you hundreds of extra dollars you didn’t know you would owe.
- Review your accounts at least weekly. Regularly reviewing your bank and credit accounts allows you to quickly spot and stop any unauthorized transactions if your card or account number are compromised, or if a restaurant enters an extra digit increasing your $100 dinner to a $1000 dinner by accident. Failing to identify and dispute inaccurate transactions in a timely manner may mean you lose your chance to get a refund or correction.
- Don’t pay to review your credit report. You can get a free copy of your credit report annually from all 3 credit bureaus at annualcreditreport.com each year. Look over it carefully to identify any inaccuracies or fraud.
- Update your beneficiaries. It takes just a few minutes to fill out the form to list who your investments and insurance go to in the event of your death. You don’t want to forget to add a child or have your money go to your ex, so take the time to update the form.
These financial planning hacks can save you some major money and some major stress. Follow these simple tips to ensure that you are getting the most out of your financial life
