5 Tips for Improving your Finances

Money can’t buy happiness, but it can help ensure security and a better quality of life.

If you are struggling financially, you are not alone. Many people are looking to improve their finances. Having money gives you the freedom to do things you want to do or spend it when you want to. There are easy ways to cut back on spending like making your morning coffee at home or bring lunch to work. But what are ways that can help with the bigger picture? What are the ways to improve finances in the long run?

By just doing a few things and making small changes to your life, there are ways to secure a future ahead and improve your finances.

Improving Your Finances

1. Create a Budget

Each month take time to look through your finances and see how much has been spent vs. how much has been earned. Come up with a plan on how much money needs to be saved and what you can spend. Writing down your income and expenses then subtract your expenses to see how much each money allots to spending.

2. Set Goals

Just like anything else in life, creating and setting goals keeps you on track. These goals should be reasonable not just to save money. Set long- and short-term goals. Long term goals can include paying off your debt or student loans over five years. Write out real dollar amounts and set dates. When goals are outlined and spelled out, they can be easier to achieve.

Two Drink Max

3. Follow 2-Drink Max Rule

When going to the bar and having a night out, try sticking to the two-drink maximum rule. Not only will this rule help to balance health effects and eliminating the chance of overdoing it, but it can help save money. By only having one or two drinks at a bar, you will see an increase in the money you are saving. Especially those in big cities where having more than two drinks can break the bank.

4. Take advantage of competitions

Companies like House of Angostura, Monkey in Paradise, Casa Dragones, and more have been hosting virtual events for bartenders since COVID-19 hit. Take advantage of these events and competitions! Typically, the bartenders will be required to create a cocktail using their product, and more often than not, there is a cash prize. The beverage industry is trying to help those who have been impacted by the pandemic and keep spirits high.

5. Track your Tips

At some point, life needs to return to normal and things will begin to open up again. When bars and restaurants have their workers returning to work, make sure to keep track of each tip you get. While walking out with an envelope of $100-$400 in tips might be nice, it can be easy to blow through that cash in a blink of an eye. A good way to make sure those tips aren’t going to waste is by putting 15% (or more) of them directly into your bank account. By doing this method, you’ll be saving little bits each day and growing your savings account.