Every person’s wish is to boost their finances and live a happy life, but what holds them back? Is it their destiny? If no, then what is it?
Well, destiny is the situation that come to you – you didn’t choose them and have no control over them. For example, you didn’t choose your looks or which country to be born, right?
In short, situations are destiny – they come to you and so you have to make a choice, because the choice you make defines your destiny.
Just like your destiny, you have to make the right choices in managing your finances to establish a better future. That’s why we’re going to look into these 9 overlooked finance hacks to help you boost your finances in 2018 and have a better future!
9 Overlooked Finance Hacks That Will Boost Your Finances in 2018
1. Reconsider Your Recurring Expenses
2018 should be the year you realize your financial freedom, and not the vice versa. There are those costs that keep on recurring every day, but you haven’t realized that they are affecting your finances.
The truth is that they are weighing you down financially and it’s time you find solutions to them.
Recurring expenses include car repairs, insurance plans, internet connection bills, electricity bills, etcetera. You can find solutions to these expenses by finding ways of trimming down the costs.
For instance, you can find a cheaper internet connection subscription, you can fix your home with energy saving bulbs etcetera.
Additionally, there is a solution with your insurance plans if you live in one of these cities; California, Illinois, Virginia, Jersey, Oregon, Pennsylvania, and Washington.
Metromile is a car insurance that has introduced pay-per-mile. That means, if you’re from one of the above-mentioned cities, then you don’t have to worry about your car insurances anymore.
You can now pay-per-mile at a flat rate of only $29 and save up to $500 per year. So, take advantage of the opportunity!
2. Invest in Real Estate
There could be tons of investments one could go for. That’s right, but what’s actually selling right now?
Have you ever imagined why people are increasingly and desperately in demand for land?
The secret is that real estate is a promising investment that never depreciates. Instead, it appreciates every year.
Assuming you wake up tomorrow and find that a packet of milk goes for $10. Whoa! How would you feel?
It’s no secret that you will be overjoyed that you will bag more dollars due to the inflation of prices of commodities. In short, when there is an economic inflation, real estate also doubles its rates.
Additionally, did you know that you can lower tax rates by investing in real estate? Well, when you collect your rental fees from your tenants, is it taxed? What of if you have a business in town?
Income from a business will definitely be taxed more because you have to register the business with your local county government.
3. Find a Side Hustle
Imagine one day you go to your workplace as normal and find a retrenchment letter on your desk. What will you do?
I’m sure you’ll be frustrated to the point you wished you could just die, especially, if you hadn’t invested some of your income somewhere.
Now, if you haven’t heard of freelancing, you deserve to slap yourself hard (hmm, take care not to hurt yourself).
By early 2018, 30 percent of American citizens were recorded as freelancers – fulltime freelancers.
The world is moving online. Everything can be done online – starting from purchasing products all the way to hiring services, can be done online.
The beautiful advantage with freelancing is that you can work anywhere, anytime as long as you have an internet connection.
You can write online, offer services like web designing, software development, tutor online and get paid instantly at the comfort of your home.
The security feature of freelancing is that even if you develop bitter relationships with one or two clients, you can still get more clients whom you can offer your services to.
In the traditional jobs, when you’re fired, you lose everything, including your income. So, make an attempt to start your freelancing business and secure your 9 to 5 job today. Read ways of how you can make money online here.
4.Open a Savings Account
If you’re looking for a smart way of saving a portion of your income, then opening a savings account will be a brilliant option you’ll never regret.
A savings account is a bank account that keeps your money safe and earns you some amount of interest each month. So, how does a savings account operate?
After you open a savings account with the bank of your choice and start saving, that money is loaned to other customers at an interest. So, it’s actually a portion of the interest got from the borrowers that is awarded to you as interest.
A savings account is fairly simple to open. You can go to your bank and tell the attendants you need to open a savings account. They will then help you create one and boom! You have your savings account.
The best of all is that even when you decide to purchase items using your debit card, your balance in your savings account remains intact.
You can also inform your bank through standing orders to channel some of your income to your savings account.
5. Avoid Gambling at All Costs
If you were asked to account for where all your lost money from gambling, what would you say?
Well, it appears like not many people know where these money goes to, but here’s the truth;
The owners of these gambling companies use their huge profits on investments like real estate. Sounds, hurting, right?
Yes, of course, it is. So, how can you stay away from tons of casinos and betting sites all over the internet and countries?
Simple. All you need to do is uninstall all apps related to gambling from your phone, never walk with your debit card (as you may be tempted to play casinos and pay using your debit cards), and avoid online money banking.
6. Did You Know You Could Trim Your Taxes?
Sure, you can slash off your taxes in a number of ways which I will show you.
First, you need to know that Health Savings Accounts (HSAs) are normally tax-free. That means, you’re charged no cent when you save your money in a HSA. In addition, you will also be charged no cent when making withdrawals from your HSA.
That’s not the only way you can trim your taxes. You can also reduce your tax rates on student loans.
Thanks to the government’s awareness that student loans are becoming a problem and recognizing that there’s need to find a solution.
In order to get access to the reduction on your student loan interests, you need to push for a student loan interest reduction on each tax return until you fully settle it.
7. Take Advantage of the Low Prices of Used Items
It is a strategy that works for many and it should work for you too.
Have you ever wondered why till date people still go for second hand items? Is it because they believe old is gold? Or is it because they are cheap?
Either way. Used items can still serve the same purpose if maintained well, just like the new items.
Examples of items that can be reused include; furniture, refurbished phones, refurbished laptops, cars and even college books.
A college book used decades ago, can still be used by a student ten or more years later, if maintained well. Similarly, cars, furniture and other items could still be bought at fairly low prices and reused by future generations.
The advantage with purchasing used items is that you can save up to 50 percent of the original price. The remaining 50 percent can be saved into your savings account or saved in a HSA.
8. Avoid Minimum Payments
If you’ve ever had or have a credit card, you must have come across this; credit card issuers attracting you with “minimum payment” options in order to lure you get your credit card when you’re a first timer.
The truth is that there are more disadvantages than advantages to this brilliant-perceived plan. Well, the advantage is that with such credit cards, you will be saved from fines and penalties.
On the contrary, it has more disadvantages. Firstly, such credit cards attract interests.
When you consistently pay the minimum amount of your debt, the remaining debt is carried forward to the next month and the interest accumulates. You get the sense?
Secondly, when balances are carried forward, you are not financially free. Each month, you get worried that you need to pay some debt. This will distract you from any investment plans you may be having, thus making you financially weak.
9. Say No to Online Mobile Banking
The last hack that’s going to lead you into financial freedom is to avoid online mobile banking.
Early this year, I faced the most difficult financial crisis in my life.
Was it that I lacked money? No! Was it that I didn’t know how to plan well? No!
I did a terrible mistake by downloading a bank app on my android phone and linking it to my bank account.
Whenever I went to shop, I would pay online. Whenever I lacked internet connection, I would purchase some data bundles online and the list is painfully long.
Within a month, I had slashed $200. It’s tough to believe, but it’s the truth.
It’s after this financial crisis that I started freelancing and so far, it’s amazing. It’s a side hustle I would highly recommend to anyone.
So, my point is this; when you decide to transact via the online mobile banking, there is usually additional charges deducted by your financial institution.
Secondly, it influences your purchasing decisions – you can end up purchasing what you may never have planned to purchase. So, instead of installing a mobile money app, it’s better to have just a debit card.
Boosting your finance should be your top priority. Of course, you want to have a happy life after your retirement and equally never want to see your children suffer. The only way to escape this is by finding ways of boosting your finances (which already you have the approved hacks to). You only need to take action and begin working your way through to financial freedom.
Do you have any other financial hacks? Feel free to add some on the comments section.