I cringe when I remember learning to drive. At fifteen-years-old, I was impatient, full of nervous energy, and so short that I could barely reach the steering wheel. (Which is still kind of a problem, but I digress.)<\/p>\n
My parents were backseat driving, of course, instructing me on how to drive the rural, dirt road just outside our neighborhood. \u201cLet off the brake,\u201d they said, and the car began to coast, slowly. Cool, I can handle this, I thought. \u201cHit the gas,\u201d they said. Chaos ensued.<\/p>\n
I swerved into the other lane, and when I yanked the steering wheel to straighten out, the car jerked in the other direction and I almost hit a fence post. My parents shouted. I screamed. All of us were terrified. I felt completely frazzled and out of control. It was like the car had a mind of its own.<\/p>\n
For many of us, managing money feels something like this. We try to make a budget and set some limits for our spending, but our financial situation always seems to have a mind of its own: your bank account overdrafts, you get a pay cut at work, your vet bill is considerably higher than you expected.<\/p>\n
But just as when you were learning to drive, developing a sense that you’re in control can make a huge difference. When I finally felt like I<\/em> was the one controlling the vehicle, driving became second nature.<\/p>\n Research, like this 2014 study<\/a>, shows that simply feeling powerful inspires people to make better financial decisions. They develop financial confidence. For this reason, I\u2019m a fan of quick money wins \u2014 small achievements that may not make a huge difference on paper, but which do wonders for how you feel about your financial situation. These quick wins won\u2019t make you a millionaire overnight, but they can<\/em> empower you, and that\u2019s everything.<\/p>\n Quick wins give you financial confidence, and that helps you make better money decisions in the long run.<\/strong> (As the study put it, \u201cfeeling powerful increases saving.\u201d)<\/p>\n In other words, change your attitude about money and you can change your behavior with it, which can lead to actually being in control of it. Try your hand at a few of my favorite money wins.<\/p>\n We all have our spending vice(s). For me, it\u2019s clothing. (Which is an interesting vice because I spend so much money on clothes yet never seem to have anything to wear.) There are a handful of reasons for this spending problem, and last month I decided to face those reasons and challenge myself to spend nothing<\/em> on clothes for the entire month.<\/p>\n For you, this might not be much of a challenge. But I felt pretty accomplished when I compared my spending that month to the previous month. It was empowering to see the result of my actions: There was more money in my bank account, but more importantly, I changed one simple bad habit.<\/p>\n If you\u2019re prone to overspending and you know you need to cut back in a lot of areas \u2014 restaurants, entertainment, bars, etc \u2014 it\u2019s tough to do it all at once. Instead, pick one<\/em> thing to focus on each month. For one month, commit to spending $100 less on your weak spot<\/strong> (or whatever amount works for your budget and spending). It\u2019s a relatively easy goal, and in achieving it, you’ll most certainly develop more financial confidence.<\/p>\n You could be one phone call away from a cheaper cell phone, internet, or cable bill. Especially if your provider offers a cheaper introductory rate online \u2014 or if they\u2019ve hiked up your prices lately \u2014 it\u2019s worth calling to ask for a better rate.<\/p>\n Don\u2019t be afraid to tell them you\u2019re thinking of canceling your service or switching providers. They\u2019ll transfer you to their \u201ccancellation department\u201d, which is really just another customer service rep who will haggle with you. Sure, you might only talk them down $10 or so, but over the course of a year, that can add up!<\/p>\n Many people also overpay for cell phone service because they don\u2019t bother checking to see what else is out there.<\/strong> Use a site like WhistleOut.com<\/a> to compare phone plans at different carriers, depending on how much data and how many minutes you use.<\/p>\n Or, try calling your current carrier. I used to call my provider regularly and ask if they could save me money. More often than not, they’d give me a deal or suggest a cheaper plan. The old \u201cit can\u2019t hurt to ask\u201d adage applies here, but even better, if you successfully haggle your bill, you feel pretty accomplished. That feeling is even more valuable than the money you\u2019ll save.<\/p>\n It\u2019s not just your internet bill that you can haggle on. Did you know that you can negotiate your credit card interest rate, too?<\/p>\n If you carry a balance on your card (or foresee that happening), call your card issuer to ask if they can reduce your interest rate. A poll from CreditCards.com found that 78% of people who called their card issuer to ask for a lower rate were successful<\/a>. Interestingly, though, only one in five people they surveyed even tried to ask in the first place. So…ask!<\/p>\n No, there\u2019s no guarantee your credit card company will reduce your rate, but if you pay your bill on time, there\u2019s a good chance they\u2019ll do you a solid. Practically speaking, you can save quite a bit of money on interest over time, depending on how much of a balance you carry on that card. Emotionally speaking, it just feels good to get a break from your credit card company.<\/p>\n In my book<\/a>, I discuss the habit of conducting a regular budget audit. Every few months, I’ll analyze every line item in my budget to see if there\u2019s any fat to trim. Almost always, there is, and it\u2019s usually a recurring monthly expense for something I no longer use, need, or want. It might be a magazine subscription I can\u2019t keep up with, a streaming service I don\u2019t get much value out of, or a gym membership.<\/p>\n Most of us can benefit from an extra $20 to $100 a month, so take a look at your own budget to see if there are any recurring monthly expenses you can trim<\/strong>. If you\u2019re spending on something you don\u2019t use each month, it\u2019s time to cut ties. Free up that cash and put it back in your pocket. Or, better yet, stick the cash in a savings account<\/a>. Seeing a regular deposit into your savings account, even if it\u2019s a mere $20 a month, feels empowering. You\u2019re doing something good for yourself.<\/p>\n It\u2019s a gutsier move, but there are few things that feel better than asking an employer or client for a pay increase and getting what you want. If you haven\u2019t negotiated in a while and you know it\u2019s time to ask for more money, make a plan to do so. Ask your boss or employer for a meeting, then prepare for that meeting by quantifying the value you bring to the table.<\/p>\n Negotiating you salary<\/a> is scary. And the downside of this is, if you get rejected, that rejection has the potential to make you feel pretty awful. (Or, if you\u2019re like me, you might feel brave and empowered just for asking, regardless of the answer!) But if you get what you want, that\u2019s not a small win, it\u2019s a pretty big one!<\/p>\n Pro tip: It\u2019s easy to start spending more money when you get a raise. It\u2019s called lifestyle inflation<\/a>. So if you do get a raise or a bonus at work, don\u2019t tell your budget! Save the additional earnings instead. Set up an automatic transfer into your savings account on payday (or increase your current saving rate<\/a>). This will help you keep lifestyle inflation in check.<\/p>\n If your employer offers a 401(k), and especially if they match that 401(k), it\u2019s worth signing up so you can finally start saving for retirement.<\/p>\n All you have to do is ask your boss or HR department for some paperwork, then fill it out and decide how much you want to save with every paycheck. Your employer should be able to walk you through the process, and you\u2019ll get a menu of investments to choose from, usually based on your age or when you want to retire.<\/p>\n If your employer offers to match your savings, save as much as you can to get that match, because it\u2019s almost<\/em> like free money. Signing up for a 401(k) is a small step toward investing, but getting started with investing is a big financial win. (Need help getting started with investing? Here’s J.D.’s beginner’s guide on how to invest<\/a>.)<\/p>\n Finally, one of my favorite ways to feel financially empowered is to reward myself for better habits.<\/p>\n In other words, I challenge myself to a new habit, like checking my Twitter feed<\/a> less often, then I reward myself with savings every time I\u2019m successful. I\u2019ll make a goal to limit Twitter to 15 minutes a day, for example, and if I stick to my goal, I put $5 in my savings account.<\/p>\n Maybe your habit is going to the gym. Transfer $5 to your savings account every time you go. (Apps like Tip Yourself<\/a> or Qapital<\/a> can help with this). Maybe your goal is to drink less. For every cocktail you turn down, transfer $10 to your savings account. That’s money you would have spent anyhow, but now you’re routing it toward something positive instead of something negative. Your aim is to link your money situation to the accomplishment you feel from adopting a good habit.<\/p>\n A lot of people feel like they don’t have control over their money situation. That\u2019s probably because, in so many ways, we don\u2019t<\/em> have control. There\u2019s only so much you can do about the economy, the salary your employer offers, and so many other financial factors. However, as the experts like to tell you, it\u2019s better to focus on what you can<\/em> control, not what you can\u2019t. Be proactive.<\/a><\/p>\n That\u2019s easier said than done, of course, but these quick wins might help you develop at least a little more financial confidence.<\/p>\n","protected":false},"excerpt":{"rendered":" I cringe when I remember learning to drive. At fifteen-years-old, I was impatient, full of nervous energy, and so short that I could barely reach the steering wheel. (Which is still kind of a problem, but I digress.)<\/p>\n My parents were backseat driving, of course, instructing me on how to drive the rural, dirt road just outside our neighborhood. \u201cLet off the brake,\u201d they said, and the car began to coast, slowly. Cool, I can handle this, I thought. \u201cHit the gas,\u201d they said. Chaos ensued.<\/p>\n I swerved into the other lane, and when I yanked the steering wheel to straighten out, the car jerked in the other direction and I almost hit a fence post. My parents shouted. I screamed. All of us were terrified. I felt completely frazzled and out of control. It was like the car had a mind of its own.<\/p>\n \n","protected":false},"author":3162,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[475],"acf":[],"_links":{"self":[{"href":"https:\/\/www.getrichslowly.org\/wp-json\/wp\/v2\/posts\/235827"}],"collection":[{"href":"https:\/\/www.getrichslowly.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.getrichslowly.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.getrichslowly.org\/wp-json\/wp\/v2\/users\/3162"}],"replies":[{"embeddable":true,"href":"https:\/\/www.getrichslowly.org\/wp-json\/wp\/v2\/comments?post=235827"}],"version-history":[{"count":0,"href":"https:\/\/www.getrichslowly.org\/wp-json\/wp\/v2\/posts\/235827\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.getrichslowly.org\/wp-json\/wp\/v2\/media?parent=235827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.getrichslowly.org\/wp-json\/wp\/v2\/categories?post=235827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/span>Cut Back on Just One Thing This Month<\/span><\/h2>\n
<\/span>Haggle Your Cable, Phone, or Internet Bill<\/span><\/h2>\n
<\/span>Call to Ask for a Lower Credit Card Rate<\/span><\/h2>\n
<\/span>Cancel a Subscription Service You\u2019re Not Using<\/span><\/h2>\n
<\/span>Negotiate a Raise<\/span><\/h2>\n
<\/span>Sign Up for Your 401(k) at Work<\/span><\/h2>\n
<\/span>Reward Yourself for Better Habits<\/span><\/h2>\n