7 surprising money “rules” that most people don’t know (but should)

You’ve probably heard common financial advice, such as sticking to a budget and trying not to spend more than you earn. But there are other lesser-known tips that can help you save money and build a financially healthy life.

From everyday hacks to long-term tips, we asked financial experts for their less obvious money advice. Here’s what you need to know:

“Purchasing an inferior product at a low price is actually a bad deal, because you end up spending more in the long run to replace a cheap, fragile product.” Andrea Wollockconsumer finance and budgeting experts told HuffPost. “We focus on quality and spend more to make it last longer.”

Mr. Warlock is looking to save money on quality products by buying second-hand products from well-known brands. For big-ticket items, we recommend taking advantage of retail sales events (like Amazon Prime Day) and buying seasonal items (like patio furniture and winter clothing) at the end of the season. Other tips: Join free loyalty programs and search for online coupons before you buy.

“While a detailed budget can help you reach your financial goals, making it too restrictive can actually quickly backfire due to burnout,” Wolloch explained. “[And]if you try to change all your spending habits overnight, it’s going to be hard to stick to your plan.”

Instead, she suggests making a few small changes to your spending and saving habits and building on them as they become routine.

She said it’s also important to leave room in your budget for expenses that are important to you. For example, if a dinner date with a friend or partner is a priority, fit that into your budget. Find other ways to cut spending, like canceling unused subscriptions or unplugging gadgets to reduce your electricity bill.

“In our society today, it’s very easy to spend money without thinking,” he said. Ann Lester” Author.Live your best financial life. ” “You can sign up for automatic updates. If you see something cute on Instagram, tap and boom, you’ve bought it.”

However, when things become too easy to buy, it can lead to mindless spending. Instead, Lester advises slowing yourself down to make spending a more conscious decision.

One of her strategies is to always make a shopping list before going to the store or purchasing items online. exclusiveWhen shopping, she suggests setting aside a specific time once a week to make purchases. As you review your list, ask yourself, “Do I really need this?” Are there any specific moments when you would use this? Just making a list will give you time to think about whether it’s worth buying.

With subscriptions, it’s easy to forget what’s set to “auto-renew.” Lester suggests periodically performing a “subscription cleanse” to review all your subscriptions and cancel those you no longer use.

“Everything you can do to save should be automated so you don’t have to make a conscious decision,” Lester says. “[Otherwise]you end up talking to yourself about what you can do with that money. And you often end up losing out because it’s more fun to acquire things than to save money.”

michael finkea wealth management professor at the American College of Financial Services, suggests setting up automatic transfers to a high-yield savings account. For example, if you have a payment at the end of the month, you can set up a transfer for the first day of the following month.

“When you have money in your checking account, it’s tempting to spend it,” he says. “Regularly sending money into a high-yield savings account can help you build an emergency fund without the pain of writing a check.”

Lester also recommends automatic transfers to retirement accounts. If you work for a company that offers a 401(k) plan, signing up for full employer matching is ideal.

“Not taking advantage of the game is like leaving a $100 bill on the ground,” Finke explained. “Even if you cancel your contract after a year and pay a 10% penalty, you’ll still be far ahead.”

If you don’t have access to a 401(k) plan through your job, you can still set up an Individual Retirement Account (IRA) and have the funds automatically transferred to you, Lester explained.

When checking your credit card statement, it’s easy to focus only on the large charges. However, it is actually important to review smaller items as well.

“Not all fraudulent charges result in four-figure purchases.” Sarah Lassner, NerdWallet’s personal finance experts told HuffPost. “Thieves often test the card by making several purchases of only a few dollars. ”

These purchases are easily overlooked, and missing them can lead to larger fraudulent charges later on.

Ratner advises checking your credit card statement monthly and if you see anything you don’t recognize (even a charge of a few dollars), immediately report it to your credit card company.

“Most of my clients have at least one long-term (investment) account, but I encourage them to consider opening another investment account for their medium-term goals.”assistance Elaine KingCertified Financial Planner and Founder of Family and Money Matters.

Medium-term goals include buying a home, paying for education, buying investment property, and starting a business.

“When we segregate investment accounts, we aim to match portfolio allocations to specific goals and time periods, ultimately saving time and money,” she explained. For example, if the purchase of a home is short-term, a “real estate fund” should be invested in short-term assets.

“Personal finance is personal and seasonal.” … It (should) be based on values ​​(and) life circumstances.” carla stevensfounder of “The Frugal Feminista” and author of: “Let’s repair our relationship with money.” When you understand that other people’s priorities are not the same as yours, “you can better identify the tools that make the most sense for you.”

Before making a financial plan, Patrick YonoThe founder and CEO of Sure Life Financial recommends planning what’s important to you. In other words, what type of home do you want? What type of work-life balance is best for you? What interests do you want to pursue? Once you know your end goal, you can figure out how to make the money you need and , what kind of investments to make, etc.

Mr Stevens also said that we need to be flexible and responsive to what is happening in our daily lives and the wider world, and not feel bound by economic ‘rules’. He added that there is.

“There are many rules of thumb when it comes to money, but don’t feel pressured to follow them all,” Lassner says. “The best thing you can incorporate into your personal financial plan is the flexibility to make changes as needed.”