Money, in small increments, can sometimes make a better impact on our financial standing than larger moves. Usually, this is because smaller moves are less missed but can become more habit-forming when continued. Here are some suggestions of small money moves that can make a successful impact on our finances as they grow into positive habits.
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Make Small Money Moves to Savings
Putting a small amount of money in a savings account or contributing to an IRA is a good idea. If you chose this option, set it up as an automatic payment so you won’t be tempted to skip a month here and there. A regular amount being set aside each month will build over time and you will hardly miss it from your main account. Besides, there is no harm in paying yourself first. You worked for the money and need an emergency fund to fall back on. As an example, if you brought home $1200 a week and put $10 in savings and 1% in an IRA, by the end of the year you would have $120 in savings and $624 in that IRA without missing it. Now those two small money moves are simple and reap a decent reward.
You should consider starting a change jar. Every six months take that jar in for deposit (you will probably need to find a coin sorter first.) You will be surprised how much you can save in coins alone. If you like, those crumpled bills in your pockets can have their own jar, too. No take backs, though.
Extra Money towards Payments for Small Money Moves
If anyone has debt that they are trying to get out from under, this is a great way to do just that. A little extra money added to a payment can reduce a debt and the interest at the same time. This works with most creditors. That is why we often hear credit card experts say to pay more than the minimum amount on our credit cards. A creditor cannot charge you interest on the expected balance if you were to pay the minimum, they have to charge interest on the balance you have after you pay the minimum plus the extra you sent with it.
You can apply this to most mortgages, car loans, loans in general, credit cards, and even some monthly bills. A few creditors out there require you to make a full advance payment when using this small money moves a tactic to help yourself get out of debt and make extra payments a habit. The idea is to reduce the principle balance, so check with the company that is holding the loan or mortgage.
Knowing Your Taxes When Using Small Money Moves Tactics
It is important to know your tax bracket in order to use the small money moves tactics effectively with a 401(k) or Traditional IRA. Simply put, when your income surpasses your normal tax range, taxes go up. It is more beneficial to contribute more money to the 401(k) or IRA.
How Projections can Help Small Money Moves
Projections can help small money moves by showing us how small money moves can grow over the course of time. This is a great incentive to boost our morale to start or even keep going when we get into a slump. It can help with showing us different kinds of projections. As an example, there are calculators for retirement, social security, and investments, 401K and savings growth. All of these calculators can help us make decisions making small money moves as well as solidify our determination to continue to stay on our course of action.
How Organization Can Help Small Money Moves
When we know that we are sinking in debt, it is hard to face the reality of just how bad it really is. Once we force ourselves to take stock and organize where we can see exactly where we are, we can then make small money moves to pull ourselves out of that debt. It may not have taken long for us to get there, but with determination, we can remove debt this way.
Making Small Money Moves by Purchasing Second-Hand
Most of us have seen articles or programs about high fashion and getting the same look at a fraction of the price. This is along the same idea. Why pay full price when there is a comparable item out there for less? There is literally thousands that can be saved when we purchase something second-hand. It could be the same brand, just a little worn. Some items have been so well kept that it is hard to tell that they are second-hand. It can be fun just hunting for a comparison to what we originally want, anyways. Making small money moves like this would be a challenge to put the extra we would have spent into savings or another account.
Time to Cancel to Make Small Money Moves
There is something that is unnecessarily being charged to most of our accounts that we no longer have need of, or worse yet, signed up for accidently. Well, now is a good time to cancel that subscription. It is a waste of money that could be used elsewhere, or better yet, be put towards savings. We did not miss it when it came out of our account before, so why not put it where it can do some good. This would be filed under small money moves that wouldn’t affect us.
When Small Money Moves are in Place There is More Time to Relax
When we have implemented small money moves and other techniques to help ourselves save and reduce debt we can turn our attention to other things that are important to us. The ability to relax and enjoy life with our family is much more enjoyable when we know that the strategies we put into place will help us overcome debt and live more comfortably, being financially responsible.
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Every little step we take to make our lives better financially will help us in other areas of our lives. No one likes to stress over his or her financial situation. With these small money moves, we won’t have to. Small money moves will lead to huge rewards when they become the habits we need them to be.