Top Ten Finance Life "Hacks"

Hello all!

I've been currently reading a book called "Your Money Life, [in] Your 20s" by Peter Dunn, and it's really gotten me thinking about money. So here are my top ten financial tips, inspired by my life experience and this book.
Enjoy!

Life HACKS 

for FINANCE

1.  TRACK YOUR SPENDING. Download Penny right now from the app store. I've used this app now for over a year and you don't know how much money you're spending -- and on what -- until you look at this app. It's full of interesting financial advice, and categorizes all your spending (bills, transportation, food, etc) and spots trends. I had no idea how much money I was spending on food -- and that was the money I was spending that I felt most guilty about -- until I looked at this app. Once I recognized this, I seriously cut back and spent the money on what I actually wanted to spend money on. If you don't trust an app, which I get, but it's sooooo much easier, use an old fashioned notebook. In fact, I take that back. Even if you use Penny, use both. 
2.  Don't keep excessive amounts of money in checking. Figure out what your cushion is, then take everything else out and put it in a savings account, a CD, or a jar, if you can't be trusted not to pull from savings. If you have money in there, you will spend it. Peter Dunn notes it's like a bowl of M & Ms. If there's a small bowl out, everybody will only take a couple out, but if it's a GIANT bowl, you can bet you'll be taking out handfuls. Don't give yourself that temptation. 
3. A savings account is a terrible place for your money. It's better than checking, but the interest you get on a savings account is just not enough. Your money really should be working for you. So, (and this is on my to do list) instead of letting it rot, invest it. Put it in a CD (my personal goal) which is a lot like a savings account, only you can't touch the money for a period of time, and it gets higher interest, or invest in bonds (low risk, lower reward) or stocks (high risk, high reward). After due research, of course. 
4. Debt, according to Peter Dunn, is horrible for many reasons, but mostly because you are trying to pay the past, present, and future all at once, and it's hard enough to pay the present and future WITHOUT your past haunting you. He also notes, no matter how clever you try to be about it, credit cards are not worth it. At BEST they prove you are a good borrower, which is not the best indicator of financial health. Pay them off as quickly as possible, and avoid store credit cards at all costs. If you're going to get into debt, choose either a mortgage or a student loan, which have the best chance of actually living up to the severe cost of the debt. 
5. Speaking of, the best way to pay off debt, according to Dunn, is to take the smallest loan and pay it off as quick as you can. Then, take the money that you just freed up, and apply it to your next smallest loan, and so on and so forth. 
6. A sale is not a bargain if you wouldn't have bought the item to begin with. This one isn't Peter Dunn. This was professor of physics, Phil Wolf, and I'm sure this one has been said many different ways. Seriously, spending money just because you feel like it's a discount, doesn't mean you're not spending money. 
7. Create a monthly "fun" budget. You know you're going to treat yourself to somethings, so why not plan for it and make a budget? You'll have to think about what you really want, and you won't feel guilty about it when you do. I spend about $20 per month on books, and not only do I feel super fancy when I pick out my book of the month, but I also don't buy other things I don't really want to fill the void, or "because I can." 
8. Speaking of filling the void, think about your financial goals, both short and long. What do you really want to spend money on. What do you really want? A new computer? A gaming system? Fancy headphones? Clothes? To pay off your loan? To me, the top three things I want are: books, travel money, and to pay off my loan, so each thing I do is carefully considered. I also know in advance what my next trip is, which loan I want to pay off and by when, and how much money I want to spend on books. Thus, I have a monthly allowance, a travel fund, and a weekly amount that goes to my loans. It works actually quite well. 
9. Have an emergency fund. You never know what may go wrong. Penny suggests about 3 months of living expenses. I don't have that much right now, but it's definitely a goal for me.  
10. Have a buffer. I don't care if you're talking about money in your checking account, how much income you're going to bring in, or how much money you're going to spend this month. Always assume less than projected. You never know what will come up, and you need to be able to breathe at night. 

Finally, here's some bonus tips -- always keep reading and learning about finance. You never know when you'll come across something that's right for you. Also, file your taxes early. Seriously. And don't make unnecessary purchases -- or use atms with fees. But you knew all that right??? 

All for now, hope this has been useful! 

<3 

~ Emery