We all know there’s always room for improvement when it comes to managing money. Chances are, there’s at least one habit you can adjust to help with your finances.
While everyone’s idea of being “rich” can vary, a common starting goal is to reach a net worth of $1 million. Your net worth is the total of your assets (savings, investments, property, etc.) minus your liabilities (debts).
How you manage your income matters, so let’s go over some habits that might be preventing you from building wealth.
8. Missing Out on Cash Back for Everyday Purchases
You’ll always need to buy groceries, and if you drive, you’ll need gas—these are life’s essentials. So why not take advantage of cash-back opportunities whenever possible?
Apps like Upside, which is free, can help. It partners with over 100,000 businesses to offer exclusive deals. Regular users can earn an additional $340 a year just by buying everyday essentials.
You can get up to 25¢ per gallon, up to 30% back on groceries, and up to 45% back at restaurants. Download Upside for free, and new users can use the code TSW25 to get an extra 25¢ off per gallon on their first gas purchase.
Note: Gas offers aren’t available in NJ, WI, or UT.
7. Not Managing Debt Effectively
Debt can spiral out of control if left unchecked, so it’s important to address it early on. Whether it’s from medical bills, unfortunate circumstances, or impulsive purchases, you need to tackle it.
You can try the debt snowball method, where you focus on paying off your smallest debts first while making minimum payments on larger ones. Pay extra whenever possible on the smaller debts to eliminate them, and work your way up. These small victories can boost your motivation to handle larger debts.
If you owe more than $10,000 and need extra assistance, you can get a free, no-obligation consultation with National Debt Relief. They are rated #1 for debt settlement on consumer review sites and hold an A+ rating with the BBB. They charge no fees until your debt is resolved, and resolution can happen in as little as 24 to 48 months. It only takes a few minutes to see if you qualify.
6. Not Using Your Phone Productively
Instead of mindlessly scrolling through social media, which might tempt you to make unnecessary purchases, consider playing games that earn money.
iOS users can try Bubble Cash, a game where you match bubbles of the same color to clear the board. It frequently ranks in the Top 10 in the App Store and has a 4.6-star rating. Win free cash by collecting gems and entering practice tournaments, then earn even more in higher-stakes tournaments.
Android users can try Mistplay, a free app that lets you play new games in exchange for gems. You can redeem gems for gift cards, including VISA, Spotify, and more! The more you play, the more you earn, and the app already has over 10 million downloads.
5. Missing Out on Getting Paid for Your Opinions
Companies are willing to pay for your honest feedback, so take advantage of that opportunity. Join Swagbucks, a free rewards program that lets you earn cash for your opinions. Swagbucks has paid out over $885 million to its members and has been around for 15 years.
You can earn points by completing surveys, shopping online, uploading receipts, and playing games. Plus, new members get a free $10 just for signing up!
4. Not Investing Spare Change
Saving alone isn’t enough for retirement, so start leveraging the power of compound interest. With Acorns, you can easily make your money work harder by investing spare change from everyday purchases using their Round-Ups® feature.
Acorns has over 10 million users and is loved by many because you don’t need prior financial knowledge to get started. You only need $5 to begin investing, and you can earn a $20 bonus when you set up recurring investments. Acorns also offers retirement accounts, family investments, rewards, and more depending on your subscription plan.
3. Not Earning Points for Paying Rent
Since rent is likely one of your biggest monthly expenses, why not make the most of it by collecting rewards?
If your landlord allows it, you could use a rewards-based credit card to pay your rent and earn points, provided you consistently pay off your balance each month. This can help you rack up points, but make sure to keep your credit utilization below 30% to maintain a healthy credit score.
2. Skipping an Emergency Fund
Your emergency fund should cover 3 to 6 months of living expenses, but the exact amount will vary depending on your situation. Life is unpredictable, and you never know when you’ll need funds for an emergency, whether it’s medical bills, job loss, or car repairs.
Keep your emergency savings in a high-yield account for better interest rates compared to traditional banks. Marcus by Goldman Sachs (Member FDIC) is one of the top online savings accounts, offering a 4.40% APY plus a 0.25% cash bonus for the first three months. There are no fees or minimum deposits required.
1. Not Creating a Budget
If you don’t know how much money is coming in and going out, it’s hard to stay on top of your finances.
You can start with free budget templates to find what works for you or try apps like You Need a Budget (YNAB), which helps users “give every dollar a job” and break the paycheck-to-paycheck cycle.
We recommend starting with a simple, free method like the 50/30/20 rule to get a feel for budgeting. Over time, checking and adjusting your budget will become second nature!
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