5 unusual money hacks to improve your finances
What's the story
Managing personal finances can prove overwhelming at times, but what if you explored some unconventional ways?
While budgeting and saving the old-fashioned way are a must, there are some unusual techniques that can help you manage your money even better.
These methods revolve around behavior and innovative ways of spending and saving.
Let's find out how you could incorporate these weird techniques.
Cash allocation
The envelope system with a twist
The envelope system of allocating cash for various categories of spending is good, but adding a twist can make it more effective.
Instead of physical envelopes, go for digital ones through budgeting apps that allow for virtual cash allocation.
This way, you will be able to track expenses in real-time while keeping the discipline of the traditional envelope system.
It promotes mindful spending by visually showing how much is left in each category.
Savings motivation
Gamify your savings goals
Turning savings goals into a game can do wonders in increasing motivation and engagement.
Set specific targets and reward yourself when you achieve certain milestones.
You can even use apps designed for gamifying savings, where your progress is tracked like levels in a game.
This way, saving money becomes a lot more enjoyable and less of a chore, encouraging you to contribute consistently toward financial goals.
Spending control
Implementing no-spend days
Designating certain days as no-spend days can have a huge impact on your overall spending habits.
Pick one or two days every week when you don't spend a single penny on non-essential items or activities.
Not only does this practice save a lot of money, but it also encourages you to get creative with free alternatives to entertainment or meals at home.
Purchase deliberation
The 30-day rule for purchases
Before making any non-essential purchase, apply the 30-day rule: wait for 30 days before buying the item in question.
This cooling-off period gives you time to evaluate whether the purchase is necessary or simply one of your impulsive desires.
Fades over time often lead to reconsideration, thus avoiding unnecessary expenditure.
Decision simplification
Automate financial decisions
Automating financial decisions, like bill payments or regular transfers into savings accounts, simplifies managing finances by eliminating manual intervention.
It ensures consistency without the effort involved manually every month, thereby minimizing chances of missing payment due dates, resulting in penalties, fees, etc.
It frees up mental space for focusing on other aspects of life instead of worrying about routine tasks related to financial management.