March marks the arrival of Spring, bringing with it a sense of new beginnings. It’s a perfect moment to take a breath and have a fresh look at your finances — there could be small ways to increase your income and manage your expenses that will make a big difference in your financial well-being.
We’ve compiled a list of simple strategies you can use to grow your wealth and “find gold” in unexpected places.
Maximize the Money Coming In
When did you last review your paycheck? Take a moment to look closely and understand the deductions on your paystub, and confirm you’re being paid accurately.
Get to know your company’s salary table — are you on track to maximize your pay at a steady pace?
If possible, set up your direct deposit to automatically invest a portion of your paycheck into a brokerage account before the rest hits your checking account — you’ll hardly miss the funds and will be surprised by how much the investment balance can grow in a year.
When you get a raise, do your best to avoid “lifestyle creep,” spending more on non-necessities. Make a deal with yourself to maintain your current standard of living, and invest the difference. (Ideally, at least 15% of one’s gross salary per year is set aside for retirement.)
Monitor the Money Going Out
Make it a goal to pay half of your monthly mortgage with every bi-monthly paycheck — doing so will reduce your principal and interest in the long run.
Review your credit cards — did you open one thinking it would save you money, but it actually ended up costing you? Cancel it now! Playing the credit card “game” doesn’t always work.
If you’re carrying a balance, pay your credit card right after making a purchase — that way, your interest won’t grow with every transaction. If possible, pay a little extra every time — you’ll be surprised how quickly that debt will shrink.
Identifying your goals and values can help you resist purchasing things that you don’t value. Journal about what’s important and what makes you happy. Before making a purchase, think about that list to ensure that whatever it is you’re buying brings you joy.