Money Hacks

1. Curb Mindless Spending by Identifying Triggers

It’s hard to avoid spending traps when you have no idea what they are.

Awareness is key. The first step to controlling spending is understanding your habits. Track your debit and credit card transactions for a month to identify patterns. Do you buy breakfast every morning? Frequent happy hours? Big-box store splurges? Recognizing these triggers is crucial.

Strategic adjustments. Once you know your spending patterns, strategize ways to curb them. Prepare breakfast the night before, set alarms to limit happy hour spending, or shop after work when you have less time to browse. Small changes can make a big difference.

Restructure time and activities. The goal isn't necessarily to eliminate enjoyable expenses completely, but to bring them to a more comfortable place. By understanding your spending habits, you can restructure your time and activities to avoid unnecessary purchases and regain control of your finances.

2. Budgeting with Buckets: Essentials, Savings, and Everything Else

It’s possible to make a budget that doesn’t feel restrictive and severe.

Simplified budgeting. Instead of complex spreadsheets, break your budget into three simple buckets: Essentials (50%), Savings (20%), and Everything Else (30%). This approach provides a clear overview of where your money is going.

Prioritize needs and savings. The Essentials bucket covers necessary monthly expenses like rent, groceries, and transportation. The Savings bucket includes debt payments and contributions to savings and retirement accounts. This ensures that your essential needs are met and you are actively working towards your financial goals.

Mindful discretionary spending. The Everything Else bucket covers discretionary expenses like gym memberships, entertainment, and gifts. By allocating a specific amount to this bucket, you can be more mindful of your spending choices and identify areas where you can cut back to boost your savings.

3. Small Changes, Big Savings: The Power of Incremental Cuts

Instead of forcing yourself to go entirely without, reduce spending on that category by just 10 percent each month.

Incremental reduction. Instead of drastic cuts, reduce spending in a specific category by just 10% each month. This gradual approach is easier to stick with and less likely to cause feelings of deprivation.

Practical application. For example, if you spent $148 on coffee last month, aim to spend $133.20 this month. Next month, reduce it again to $119.88. These small, incremental shifts are more sustainable than trying to quit coffee cold turkey.

Consistency over intensity. By introducing moderate reductions instead of radical changes, you're more likely to stick with your new habits. This approach allows you to gradually adjust your lifestyle without feeling overwhelmed or restricted, leading to long-term financial success.

4. Automate Savings and Eliminate Bank Fees

Making your savings automatic—and putting it somewhere you can’t see it all the time—reduces your chances of falling short on your financial goals.

Direct deposit split. If your company offers direct deposit, split your paycheck into two or more separate accounts. This ensures that a portion of your income automatically goes into savings before you even see it.

Fee-free banking. Avoid banks that charge monthly fees for checking accounts. With the rise of online banks, there are plenty of options that offer free checking accounts with no minimum balance requirements.

Round-up programs. Sign up for programs that round up your debit card purchases and put the spare change toward your financial goals. These small amounts can add up over time, boosting your savings without requiring significant effort.

5. Harness the Power of Cash Back and Rebates

Once you’ve applied the most valuable promo codes to your online order, make sure you’re also earning cash back on your purchases.

Cash back portals. Use cash back portals like Rakuten to earn a percentage of your purchases at participating retailers. These portals offer a simple way to save money on everyday purchases.

Rebate apps. Utilize rebate apps like Ibotta to earn cash back on specific products when you shop in-store. These apps often offer rebates on groceries and household items.

Stacking savings. Combine promo codes with cash back and rebate offers to maximize your savings. By taking advantage of multiple opportunities, you can significantly reduce your overall spending.

6. Debt-Free Living: Know Your Debt and Credit Score

The first step to getting out of debt is knowing what you owe.

Debt inventory. List all your debts, including credit cards, student loans, and personal loans. Include the balance, interest rate, and monthly due date for each debt.

Credit report review. Obtain your free credit report from AnnualCreditReport.com and review it for errors or unauthorized accounts. This helps you understand your credit history and identify any potential issues.

Credit score monitoring. Access your FICO score for free through your bank or credit card issuer. Knowing your credit score is essential for understanding your creditworthiness and negotiating better interest rates.

7. Avalanche, Snowball, or Blizzard: Choose Your Debt Payoff Strategy

There are two methods for paying off your debt.

Avalanche method. Focus on paying off the debt with the highest interest rate first, while making minimum payments on all other debts. This minimizes the total interest paid over time.

Snowball method. Focus on paying off the debt with the smallest balance first, regardless of the interest rate. This provides quick wins and motivates you to continue paying off debt.

Blizzard method. Combine the best of both worlds by paying off the smallest balance first, then switching to the avalanche method and focusing on the highest interest rates. This provides an initial boost of motivation followed by a strategic approach to minimizing interest.

8. Boost Your Income with Side Hustles and Skill Development

If you can, pick a second gig that doesn’t look anything like your nine-to-five job.

Diversify income streams. Explore side hustles that align with your interests and skills. Consider options like driving for ride-sharing services, delivering groceries, or freelancing.

Skill enhancement. Invest in learning new skills that can increase your value in the job market. Take online courses, attend workshops, or pursue certifications in your field.

Negotiate salary and benefits. Research your market value and negotiate your salary and benefits during job offers and annual reviews. Don't be afraid to ask for what you're worth.

9. Invest Early and Often for Long-Term Financial Security

If you can get 1 percent better each day for one year, you'll end up thirty-seven times better by the time you're done.

Start early. Begin investing as early as possible to take advantage of compounding returns. Even small amounts invested consistently can grow significantly over time.

Automate contributions. Set up automatic contributions to your retirement accounts to ensure that you're consistently saving for the future. This removes the temptation to skip contributions and helps you stay on track.

Diversify investments. Spread your investments across different asset classes, such as stocks, bonds, and real estate, to reduce risk and maximize returns. Consider using target-date funds or robo-advisors to simplify the investment process.

10. Protect Your Finances from Fraud and Unexpected Events

Modern banks are all about convenience, claiming to make it easier than ever to manage your money.

Credit freeze. Freeze your credit reports with all three credit bureaus to prevent unauthorized access and protect against identity theft. This prevents new accounts from being opened in your name.

Banking alerts. Set up banking alerts to monitor your account activity and detect any suspicious transactions. This allows you to quickly identify and address any potential fraud.

Insurance coverage. Obtain adequate insurance coverage for your home, car, and health to protect against unexpected events. Consider purchasing umbrella insurance for additional liability protection.

Last updated: February 23, 2025