If only making money was as easy as spending it…
It seems the illusion of being a put-together human who is totally winning at the whole adulting thing is harder to achieve than our parents made it look when we were growing up.
Once upon a time we believed being able to manage your money was the pinnacle of adulthood, but it turns out the skill of budgeting (and sticking to it) is one few Gen Yers have managed to master. More than one in three registered debt agreements belong to 25 to 34 year olds, according to data from McCrindle Research.
Bills, rent, brunch with the girls, free shipping on shoe purchases over $99 – all of these things are constantly getting in the way of a plump savings account.
We all wish we were a bit better at handling our money, so here are some easy hacks that will have you multiplying and managing your hard-earned cash faster than you can say “online shopping”…
1. The $5 note hack
This cheeky hack is so simple you’ll be kicking yourself for not thinking of it earlier. It is easy enough to master – just never spend a $5 note. Ever. Every time you have a $5 note, put it away and don’t spend it. At the end of the month or year, you’ll have a nice pile of cash to put towards your savings.
2. Use cash, not card
Since the introduction of tap-and-go payments, it’s easier than ever before to spend our money frivolously. Withdrawing cash and physically being aware of exactly how much you’re spending keeps you super accountable, and you’ll find you’re less likely to throw your money around like you’re Usher getting bottle service when you can see your cash leaving your wallet faster than you make it.
3. Set up automatic transfers
Bills are terrifying for those of us who are bad at budgeting. It can be easy to forget deadlines are coming up or convince yourself you’ll put the money back before the due date, but setting up automatic transfers will hold you accountable and ensure you leave enough cash in your account to cover the fundamentals – because no-one wants to overdraw and see you’re sitting in the negatives.
4. Get income insurance
No matter how prepared you are, sometimes the unexpected will happen – like getting an injury or illness, which means you suddenly don’t have a regular income. To avoid a massive panic attack and dire money sitch, speak to an income insurance provider to discuss your options for getting covered so you’re not left cashless in the case of any unforeseen health issues.
5. Keep your credit card at home
This hack won’t be helpful for serial online shoppers (hello, ASOS), but if you’re tempted to put unnecessary purchases on your credit card when you’re out and about, the easiest way to avoid doing it is to simply leave the card at home. You can’t splurge on new heels if you don’t have the plastic to do so!
6. Download an app
It’s 2017, and that means you can now be lazier than ever when it comes to getting on top of your finances; there are countless free and paid apps that will do all of the hard work of managing your money for you. For the semi-money-savvy, there are basic budgeting apps that you can enter and track your monthly expenses in, or for cash management dummies, there are more sophisticated ones that will tell you you’ve spent way too much money on Uber this month and need to calm the eff down!
7. Have multiple bank accounts
Having all of your hard earned cash going into the one account may look great when you first get paid, but this can also trick you into thinking you’re rolling in moolah and can splash cash like you’re on a holiday bender. Dividing your cash among a few separate accounts – one for bills and rent, one for long-term savings and one for everything else (including holiday benders!) – can help you look at your money differently and better manage it in the process.
Images via tumblr.com, giphy.com, tenor.com, cosmopolitan.com.
Comment: What are some hacks you use to manage your money?