The Road to Financial Freedom: 10 Must-Know Tips Your Parents Never Told You

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Do you remember your parents teaching you about how to manage your finances?

Chances are that chances are, the answer is no.

Navigating the world of finance can be overwhelming and intimidating, especially if you didn’t learn these life lessons growing up.

Fortunately, this article provides an invaluable solution by offering 10 must-know secrets for mastering money management.

Anyone with a desire to create positive financial habits can easily benefit from learning these time-tested techniques!

So whether you’re working towards creating passive income streams or simply want to increase your net worth, keep reading for some powerful wealth secrets sure to make managing your finances easier than ever before!

1. Think Before You Buy

Can you count the unnecessary things you’ve bought after payment comes in? According to one, you should evaluate whether you need something before purchasing.

If it falls outside your necessities, wait twenty-four hours before buying it.

2. Consider Savings as a Bill 

One person proposes setting up a separate savings account. Then, you can save automatically whenever your payment checks in.

Ensuring it’s not connected to your checking account limits access and the temptation to dip into your savings. Save and forget about it. You’ll feel great after accumulating a considerable amount.

3. Don’t Spend Money on Compost Fodder

You always think you’re saving money while buying in bulk, but you may be buying manure. A prudent spender states you should stick to shelf-stable foods when shopping in bulk.

Buy what you can reasonably prep and eat before it spoils.

When they were younger, they thought they were saving money by buying three packs of strawberries for five dollars instead of one for three dollars.

They couldn’t go through the three packs since they were only two people. Instead of saving money, they spent two more dollars on compost fodder.

4. Think About the Total Price

Countless users caution that lenders make you focus on the monthly payments to obscure the exorbitant total cost.

One person recounts how they made monthly payments for a car and were close to paying the total amount.

The bank sent them a letter saying they could skip monthly payments for the next month at a fee.

This would accrue more interest, which they’d have to pay, but the bank presented it as a kind gesture. They used the pre-paid mailer to send a handwritten note declining the offer. The bank had to pay for the postage.

5. Build Mental Awareness

Using cards to make payments reinforces the idea of bottomless cash. Another budgeter says using physical cash and envelopes system enforces the idea that you’re losing something.

A physical exchange makes you aware of what spending means.

6. Up Your Game

Finally, a frugal living enthusiast writes that you should learn how to get the items you need at a good price. Note what items are worth paying more for and those you can get at the dollar store.

There are events you may need to pay for, but others you can attend for free. Put some effort into spending less and saving more.

They recommend reading the book, Your Money or Your Life for tips on frugal living.

7. Pay Your Credit Card Before It’s Due

How often do you pay your credit card? An individual recommends paying your card off every week or on payday, even if it auto pays.

This way, you are not surprised by the total. They add that you should only buy something with your card if you can afford it in cash.

8. Prepare for a Rainy Day

Life is unpredictable, and you can never prepare enough for an emergency. However, having an emergency fund makes it easier to navigate such times.

A commenter suggests having a minimum of a thousand dollars in your emergency fund. It’s ideal to have three to six months of expenses covered. If you can afford one year, that’s safer.

This money will help you avoid depending on loans and credit cards on a rainy day.

9. Track Every Cent You Spend

A responder endorses creating a budget where you note all your expenses against how much you make each month.

Categorize your expenses into mandatory living, fixed mandatory living, and fluctuating optional expenses.

Mandatory expenses include food, gas, and clothing; fixed mandatory expenses include phone bills, rent, and car payments, while fluctuating optional expenses are frivolous.

10. There’s Food at Home

Anyone who grew up in a household where money was tight has heard the above statement more than they’d like.

A money saver indicates you should cancel your Uber Eats, DoorDash, Starbucks, or other eating-out arrangements. Instead, cook all your meals at home.

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This thread inspired this post.