Have you noticed that your money keeps disappearing from your wallet when you are not even splurging or going on a vacation?
If you have, well, you're not alone. I call myself a homebody and not in a negative way but in a way who would instead save money or go out on a cheap adventure. Especially since the start of summer, prices of typical grocery to gas has been on the rise, and I can't even go for my fun drives at night anymore :(
So if you are like me and want to save money, keep reading because I will share tips and tricks that can hopefully help us from going broke.
1. Open a High Yield Savings Account
With inflation being on the rise, feds recently increased the interest rates. I have about five savings accounts. Some of them still have interest rates listed as 0.02%. I browsed my Discover Savings account casually and noticed the 0.70% interest rate. I got super excited and transferred all my savings to this account. I looked at the account today(6/18), and the interest rate hiked to 0.90%🤑. So, if you don't have an HYSA, please browse for one and open your account today.
2. Now is a good time for a budget
With everything being on fire and close to being unaffordable, now is a great time to create a budget and track your spending if you haven't already. Try to allocate money for your bills first and then filter it down to other necessities. I would suggest saving as much as possible and maybe postponing your trips for now.
3. Invest but be smart about it
The market is still heading in a downward direction. We haven't hit the lowest point yet. So keep some cash handy to invest in cheap stocks when that happens, and don't fret if the stock still crashes. In the long term, cheap investments usually end up paying off more than the loss itself. Don't just dump everything into one type of investment. Try to diversify.
4. Polish your resume
With all this news about layoffs, it's possible that your company might be the next to hit the news. So, be prepared and polish your skills in case you lose your job and have to look for one.
5. Don't look at your portfolio
If I told you how much money I have lost since November 2021, some of you might start crying or go into shock. Does it hurt? Absolutely. But this is not my first time in a bear market. I've read enough books and articles to understand that the stock market offers returns in the long term. I've avoided looking at the portfolio altogether to avoid getting an embolism. I very recently finally stopped investing and decided to save some cash as my main focus before this was to pay off my student loans before the grace period ended.
It will get better. Educate yourself on the subject of finances and stay patient. All your patience will pay off eventually. Be smart about your choices, and don't attach yourself to your money emotionally. You'll end up hurting yourself.
Till next time, Peace!
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