Today is the final post in our three part series, 15 Ways to Improve Your Finances in the New Year. Part 1 covered the first five ways, Part 2 covered five more ways, and today we have the final five ways to improve your finances in the New Year.
In today’s post we will dive into cutting expenses, saving money through coupons, paying down debt, and more! I know you’re excited so let’s get to it.
11) Make a Plan to Pay Down Debt
Some people think that all debt is bad debt. I disagree. While I recognize that student loans can be a risk because you are not guaranteed to get a job in your field (or like working in your field!) and you may not end up making more money even after getting a four-year degree, they also enable people whose parents don’t have the money to fund their education to go to school.
Regardless of your view on debt, I think we all agree that it’s important to have a plan to pay it back.
The best way to go about paying down debt is to list out everything you owe including the interest rate. If you have any high-interest debt, consider figuring out how much extra you can put towards it each month. If you have low interest debt, like some student loans, mortgages, and auto loans, consider whether it makes sense to pay more than the minimum or to invest the money instead.
12) Cut Costs by Using Coupons
Couponing is something my wife and I started a couple years ago and we’ve saved thousands of dollars over the course of those two years. Couponing may take a little bit of time, but if you do it right you will essentially be ‘making’ a decent amount of money per hour that you put into it. Besides just the weekly newspaper there are a ton of coupons available online at sites like coupons.com and even some retailer’s websites like Target.com. Even better about Target is that you can use both Target and manufacturer coupons on the same purchase.
My post on how to organize your coupons in Microsoft Excel is one of my most popular posts, and for good reason: the more organized you can be the more time and money you save couponing.
13) Lower your Monthly Bills
If you’re tracking your expenses, you know just as well as I do how much of your spending is from recurring fees and memberships. Make this year the year that you keep tabs on this monthly fees and get them lowered if they’re too high.
- Phone Bill – There is (finally) new options for lowering your phone bill. I switched to Walmart Family Mobile powered by T-Mobile this year and I’m really happy with the ~$50 a month I pay per phone line for unlimited talk, text and web. Walmart Family Mobile isn’t your only option for lower-cost phone service, so take some time to research all the options before making up your mind.
- Cable/Internet – My cable and internet bill increased drastically this year because two different “promotions” I was on were expiring. I had enough so I called the cancellation line and told them I wanted to cancel. I ended up staying with the same company and now pay over $60 less per month for the same service, with no monthly contract.
- Review Memberships – Magazine subscriptions, newspaper subscriptions, gym subscriptions, Netflix and other media subscriptions all add up. Review what services you are and are not using. If you are paying $50 a month for a gym membership you haven’t used in four months, either cancel it or start using it. Do
Lowering your monthly bills can save you hundreds (or thousands) a year, so be adamant about reviewing what money is going out the door each month and what you can save money on.
14) Sell your Stuff
Just about everyone has something in their home that they no longer use and likely will never use. This could be old clothes, old movies or books, or old furniture. Selling stuff online can bring in some extra money while also de-cluttering your space.
My wife and I had a garage sale last year but had quite a bit left over (the rain in the afternoon really hurt our sale). Since then my wife has sold over 100 things on eBay. Clothes are the main thing that we sell, though we also have quite a few books, DVDs, and other things that we’ve sold and still need to sell.
Another great option for selling things is Craigslist. I’ve sold a number of things on Craigslist that I’ve won in giveaways. At first I was skeptical about Craigslist, but it’s so easy to use that it’s hard for me not to list things now. It’s important to stay safe when buying and selling on Craigslist, but if you take some precautions it can be a great way to sell (or buy) things.
15) Get Additional Education or Training
Let’s face it: we could all use a little more financial literacy. Whether you know little to nothing about investing, have never set a budget, or are in the dark about how much you should be saving for retirement, there’s always something else that you could spend a little more time learning about. This year I plan on learning a lot more about investing, which will require me specifically setting aside time to learn the ins and outs of investment options, markets, etc. Learning more does require sacrifice, but it’s sacrifice for a good purpose.
Your level of financial literacy is hardly the only thing that impacts your finances, though. Evaluate your career and how you make money. Would going to grad school increase the amount of money you will make long-term and prevent you from hitting a ceiling in your career? Perhaps it’s time to start looking into grad school options. Do you want to be a small business owner instead of an employee, but lack some of the technical or business skills to strike out on your own? It might be time to start doing some self-learning in your spare time.
Whatever you need to learn or whatever certification or advanced degree you need to pursue, make sure you take out time in the new year to evaluate your options and what sort of sacrifice it would take to achieve your goals.
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Let me know if I missed anything that you would suggest be added to the list!
That’s it for our series on improving your finances in the New Year! If you missed it check out Part 1 and Part 2.
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David,
The most important thing on this list is training and investing in your skills You can only cut so much, but upgraded skills you can greatly increase your earnings. I’ve found people who strongly advocate cutting expenses to grow their finances as opposed to investing in themselves are often afraid to try to earn more money. Or they hustle and they’re so afraid of learning about investments, which over time will far exceed any daily hustle.
Charles@gettingarichlife You beat me to it Charles! You can only save 100% less than you spend now, but you can earn 1000000% more than you earn now…
moneystepperCharles@gettingarichlife Definitely agree with you two on this one. I’m not opposed to cutting expenses, but I really do think increasing income is more important. I actually had a great conversation with someone at New Year’s Eve about this and he presented a great counter-point, which is too long for a comment and will make for a great blog post in the future.
I tend to like the things you can do once but the benefits compound over and over, like cutting monthly bills or getting focused education/training that will lead to earning more money. I’ve never been a coupon guy simply because of the regular work you have to put in. I know it can save me money, but it’s just not my personal style.
Matt @ Mom and Dad Money I’m with you on investing in things that can save you money (or make you money) over and over, which is why I’m a big advocate of side hustles that allow you to sell for a lump sum versus ones where you trade time for hourly work. Hourly work is better than nothing, though, and I realize that for the vast majority of people it would be the go-to side hustle option.
Good end to the series DC! I’m like Matt in that I like things that’ll help me grow or save my money over time, so the cutting of bills and learning new skills are huge for me. You can only cut bills so low, so I love to focus on growing my talents and skills so it can be something we can monetize and have new offerings to our clients. We actually came up with one yesterday that my wife can do that we hadn’t even thought of, those situations are the best! :)
FrugalRules I’m on the same page as you with gaining skills and learning how to use them to create new income streams or increasing your current income streams. I think I’ve focused on this a lot and will likely continue to on the blog and in my personal life.
The whole list has been great. I’m all about “selling my stuff” right now since we’re moving. I sold a bunch of toys and furniture already this month.
Holly at ClubThriftyYes I saw that on your blog and it makes sense. Moving is a pain and the less stuff you take with the easier it will be. Plus it will feel more like a “fresh start” the less you bring with.
I just went to Target yesterday and used a bunch of coupons…saving a bunch of money of things I buy normally. Of course I used my Target Red Card for an additional 5% off. I’ve mainly sold books on Amazon…I was thinking about selling some clothes. You use craigslist for that? As for lowering my internet cable bill, I keep seeing that commercial with Bill Cowher for Time Warner talking about $14.99 internet…I should check that out.
Andrew LivingRichCheaplyUgh we do not have that internet offer here in the Midwest, it sounds great though. We do have a $19.99 offer, but you can only get it if you bundle with phone service, which is $45 + modem rental of $8 + taxes and fees.
I feel bad for people who do not have a REDcard but still shop at Target. Why would you not want 5% off? We sell clothes on eBay.
Tip fourteen might be my favorite of the whole list. Selling the things you own is a way to make money, with no barriers to entry whatsoever. And it’s quick. And, it’s (possibly) tax free. Okay, maybe the last one isn’t entirely ethical, but come on now.
DonebyFortyI think the income tax is essentially immoral, but let’s not get into that right now ;) I do like to sell stuff that I already have, because there seems to be so much of it. My wife has been listing stuff constantly and we still have a lot to go.
Very nice job on the series. I’ve been doing some of these things already. Knowledge is so important and it doesn’t have to cost you any money. Just a little time invested everyday on reading about subjects you don’t know can save or make you money.
Raquel@Practical CentsThanks, I appreciate the feedback! I think it’s really important that people be lifelong learners and continue to gain knowledge on various topics. It can introduce you to new ideas that just might make you money.
Along with saving, think about making extra money too with a side hustle. With the internet, there are a lot more avenues to earn from your couch!
I love this series and I’m glad you address these points.
moneyconeYep I mentioned side hustles in part 2 and I think it’s very important for people who have an entrepreneurial itch, are in debt, and/or have goals of making more money than would be realistic with just their full-time job.
I enjoyed theseries, DC! Getting more education is something I am considering to increase my earnings at my full-time job. I am not sure if I am ready to dive back into school and balance working and trying to build a blog.However, my employer does offer some tuition assistanceso that makes it tempting.
BudgetforMoreI’m glad you enjoyed it! I’ve dealt with the same problem. I think I’d have to sell my blog if I went for my MBA, but I’m much more interested in my blog and other potential side hustles than an MBA so at this point I’ve opted to not pursue further education.
I love the coupon idea of organizing through excel! I have tried couponing a few times in the past, but always ended up with expired coupons. I know it was poor planning on my part, so I will have to try this out.
blonde_finance It really does take some time, effort, and planning. I think it’s worth it, though, because once you have a system down that works for you you can end up “making” quite a bit per hour of effort you put into it. It’s money you would have spent anyway so might as well put some of it back in your pocket!
This has been a great series, DC! It’s really easy to get complacent with our monthly bills, even when we seem them increase. We grumble but just assume that’s the way it is. But often, it just takes a phone call and you get yourself a better deal. There is more competition for our business than we sometimes realize and we need to capitalize on it!
ShannonRyan Thanks for the feedback on the series, Shannon! I’m glad you enjoyed it. I love the fact that phone and cable/internet providers are really pushing the prices down further and further. I think it’s just a matter of time before these services become incredibly affordable for everyone.
I am glad to say I’ve already taken action and lowered my cell phone bill. Toward the end of last year, I also started couponing more often than not. My grandma actually got me a little organizer for Christmas which was cute. I do need to make a plan for paying off my student loans, though. I make extra payments, but it would be nice to have a tentative payoff date.
JourneytoSavingI’m glad I lowered my cell phone bill as well. It’s nice to be spending about $60 less a month – that’s a lot of money over the course of a year.
I’m planning on selling a bunch of my stuff this month! Hopefully this’ll help cushion the emergency fund, as well as clear out some much needed space in my room.
I think learning new skills is essential to increasing income and improving finances. I don’t have much to sell at this point and am also ferociously paying down debt, so I am trying to be resourceful in the ways I can make money. Luckily there are so many online, free resources to learn new skills.
I love #13 and #14. Decluttering both your financial obligations and your home can do wonders for your mental psyche and your wallet!