Finance
Talk to a financial advisor, but here are my strategies.
Purchasing Decisions
Three Questions
Before you buy something, ask yourself these questions:
- Can I afford it?
- Will I use it every day?
- Did I sleep on it?
If the answer to those questions is yes, then it is probably a safe purchase.
If It Ain't Broke, Don't Fix It
One reason to buy something is that it serves a purpose. If that purpose is already being served, then consider not buying something new and using the money to serve another purpose.
Observability
Subscription Reminders
Make a list of all of your subscriptions, their costs, and their renewal dates.
Set reminders to evaluate whether you still need these services.
Apps
I use an app called Copilot Money (not affiliated with Microsoft/GitHub's Copilot branding) to get better visibility into my finances.
This app allows you to connect your bank accounts, credit cards, loans, and investments in one place [1].
Credit Cards
A low friction way to benefit from credit cards is to find a set of cards for your highest purchase categories, such as gas, groceries, restaurants, and Amazon, and use those cards for those purchases.
Find cards with low/no fees, and cashback rewards unless you travel a lot or want to spend time gaming points.
Get in the habit of paying off card balances daily or weekly by creating reminders to do so.
Savings
High-Yield Savings Account
Similar to credit cards, find a high-yield savings account with minimal fees and rules.
Employer 401(k) Match
If your employer offers a 401(k) match, contribute enough to get the full match.
Mortgage
Escrow
If you use escrow for taxes and insurance and receive an escrow check, don't keep the check. Put the money back into the escrow account, otherwise you may be short the next year and have an unexpected mortgage payment increase.