There are two ways to build wealth: cut expenses or make more money. I’m constantly trying to find ways to do both.
The launch of Make Money Your Honey has been a decent new form of passive income. I’m also working with new coaching clients and writing clients.
In short, I’ve been making more money (In January alone I made $2k plus more than I did at a regular job) while working relatively less hours. Or, at the very least, I work when I feel like it. Make more money to build wealth? Check!
Step 2 would be to cut unnecessary expenses and see where you could be saving extra money. There are two reasons why I’m doing this. First, because it’s good to periodically take a look at where you can save money. Second, because I have a new major expense coming up in the form of health insurance.
I personally don’t mind paying for health insurance since I see it as a necessity. However, it’s still costing a pretty penny so I have to adjust my budget. Below you’ll find some tweaks I made to save money so healthcare wouldn’t seem like such a big hit. These are tweaks that just about anyone can make in order to actually keep the money they make.Using Digit for automatic savings.
Using Digit for Automatic Savings
Digit is a free service that looks for extra money in your checking account and then deposits small amounts of cash into a savings account. The idea is that Digit finds money that you wouldn’t miss and you otherwise don’t really need to pay bills. It’s a great way to get into the habit of saving and it’s painless.
From December of 2015 to February of 2016 Digit was saving me an average of $200 a month in what is basically extra money sitting in my checking account. Had it not been for Digit I might have not even noticed or I would have spend the money on something stupid.
Using Acorns to round up and invest spare change.
Acorns is another great tool that I use to help me boost my savings. When you make purchases from your checking account, Acorns will round up to the nearest dollar and invest the difference into a Vanguard index fund. You can also get cash back deposited into your account by shopping with one of their partners. For example, Dollar Shave Club will deposit 10% of my membership fee back into my Acorns account.
You can also get cash back deposited into your account by shopping with one of their partners. For example, Dollar Shave Club will deposit 10% of my membership fee back into my Acorns account.
On average Acorns is saving me about $50 a month that is now being invested into the stock market without me having to lift a finger.
Click here to sign up for Acrons through my referral link and get $5.
Switched from post-paid cell phone to pre-paid plan.
Who actually uses their phone to make tons of phone calls anymore? Last time I checked most of my friends just send me Facebook messages should they need to get a hold of me. Furthermore, most of my business calls take place over Skype since my previous provider would get zero service in the house. So why was I paying so damn much for cell phone service?
You can get yourself a pre-paid phone and save yourself a good $50 or more a month. If you absolutely need to make lots of calls they have unlimited prepaid plans or you can get yourself a Skype subscription for $2.99/mo.
(P.S. T-Mobile has decently priced prepaid plans. They are also reimbursing cancellation fees when you break your contract with your current provider. By switching to T-Mobile I’m saving $57 and I’m still getting all of my cell phone needs met without a contract.)
2. Canceled my gym membership.
When I first started working out regularly a couple of years ago I needed to actually go to a gym. It was so close to my job that I could just walk or take a trolley. I was also spending money so I’d feel obligated to get healthy. Essentially, I would use my wallet to trick myself into going to the gym or attending a fitness class.
I’m proud to say that now I actually have the motivation to work out on my own. The internet also helps with free workouts. As a result the gym had to go, which means I’m saving another $85 a month.
Some of my favorite free online fitness videos include Blogilates, Do Yoga With Me, and Tone It Up.
3. Got rid of my business mailbox.
While I have been visiting UPS more often to ship copies of my book the reality is I don’t really use the mailbox. Besides, as far as the IRS is concerned I run a home based business (which is true), so why exactly do I need a business mailbox? I paid for this every six months, but when I broke down the number to a monthly amount it came out to around $60/mo. Yeah, bye.
In total, I was able to cut out $202 of expenses just from making a few simple adjustments. For more tips on how to create budgets that work for you make sure to check out Make Money Your Honey on Amazon.