This post is a second-generation copycat post. Specifically: My daughter wrote “5 fast, easy ways to improve your finances” after being inspired by a post from the Bitches Get Riches website (whose title is not ready for prime time, but definitely worth a read if you’re not averse to salty language).

Hey, if it worked for their readers, it should work for mine.

 

1. Create a budget

 

The best way to take control of your cash is to have a clear plan for spending it. That’s where a budget comes in.

Start by figuring out where your money is going right now. Track your spending, with pen and paper, an Excel spreadsheet, or a budgeting app like Mint.com or PowerWallet.com. They’ll track your spending and give you suggestions about how to simplify your money habits.

Plenty of people swear by the 50/30/20 budget. That means paying no more than half your after-tax income for “must-haves” (basics like rent, utilities and food), 30 percent for “wants,” and 20 percent for savings and debt repayment.

Note: Budgeting is not a one-way trip to the Land of Zero Fun. It just means being aware of how you use money so that you can make every dollar work for you. While categories like “save for retirement” and “pay mortgage off early” are important, make sure you allow for line items like “vacation,” “holiday spending” and “That Thing I Like.” After all, it’s your money.

 

2. Engineer leftovers

 

Packing a lunch even two or three times a week can be a major boost to your finances. One way to beat lunchbox boredom is to stray away from sandwiches now and then: a Thermos full of minestrone, say, or a big gooey bowl of mac ’n’ cheese to be reheated in the office microwave.

Before you put a home-cooked dinner on the table – or even a store-bought one (hello, Costco rotisserie chicken!) – swipe a little bit for later. Face it: If there’s a big pot of chili going, it’ll likely be eaten until it’s gone. Ditto that last pork chop or serving of black bean and quinoa enchilada casserole.

Scoop out/carve off a serving and put it in a container to carry to work the next day. Don’t have a way to heat up food at work, or can’t carry a lunch for other reasons? Cool down that serving and then freeze it. Pretty soon you’ll have a selection of single-serving dinners for nights you don’t feel like cooking.

Incidentally, I’ve got nothing against sandwiches. This tactic works for them, too: Before you serve that meatloaf or grilled chicken, carve off enough to put between slices of bread for tomorrow’s lunch.

 

3. Build an emergency fund

 

Basic, right? But according to the Federal Reserve, 47 percent of U.S. residents say they couldn’t cover an unexpected $400 expense without borrowing cash or selling something. Emergencies happen whether we’re ready or not, so why not get ready?

Your EF doesn’t have to be gigantic. Some personal finance pundits insist you need three to six months’ worth of living expenses in the bank. As in, all your living expenses: food, shelter, utilities, insurance and basic debt service. Others believe you actually need a year’s worth of these expenses.

I say, “That’s a lovely dream, but some people are lucky to have anything in the bank. Stop making folks feel defeated before they start.”

Think you can’t save an EF? You may be living close to the bone, but imagine how much more stressful life will be the next time your car starts making a funny noise.

Set a small goal – “By the end of the month I will have at least $5 set aside” – and challenge yourself to see how much more than $5 you can squirrel away. Get your family or roommates involved; nothing like a little friendly competition to keep things lively.

My first book has an entire chapter devoted to what I call “stealth savings” tactics that can help you build that EF. I will e-mail a free copy of this chapter to anyone who asks. Send your request to me at SurvivingAndThriving (at) live (dot) com.

 

4. Question authority

 

Mistakes happen. That’s why a smart consumer reads credit card statements, bills and explanations of benefits very carefully.

For example, I saved a little over $65 by calling to find out why I was being charged a co-pay for a mammogram (which is fully covered under my insurance). The billing department’s reaction was, more or less, “Whoops – sorry.”

Probably the error would have been realized eventually and the money returned – but maybe not. Besides, why should I be deprived of the use of those dollars in the meantime?

Read your credit card bill line by line, too, to look for unauthorized charges. In an age of data breaches and card skimmers it’s pretty easy for your information to be stolen. During a memorable two-month period in 2014 three of my cards were compromised.

Oh, and ask to speak to a manager if you buy food that turns out to be spoiled or housewares that fall apart too quickly. Sometimes you have to ask more than once, as I recently learned. But good customer service is how stores, both online and IRL, keep you coming back. Don’t be a jerk about it, but do (courteously) ask the retailer stand behind its product.

 

5. Dream

 

Where do you want to be in five years, or even in two? Maybe you can’t answer that question because:

• You were never taught to think ahead. (That was me, for years.)
• Your life right now is all about putting out fires.
• You’re afraid you won’t be able to have what you want, so you try not to think about the future.

Set aside an hour (or half an hour, if that’s all you can muster) a week to think about what you want. This might be the first time you’ve ever focused on your own dreams. Too often we hone in on other people’s ideas of what’s right for us.

Maybe you were always told you should be an elementary school teacher because you’re so good with children, but lately you’ve realized that your interests lie elsewhere. You’d rather be a pastry chef, a boutique farmer or, heaven help you, a freelance writer.

Determine what you need to do – or what you need to learn how to do – in order to get your dreams in motion. Set a couple of small, reasonable goals: looking for classes or apprenticeships, determining start-up costs, figuring out how to network in your chosen field.

Each achievement will give you a feeling of accomplishment and encourage you to keep going. What you want probably won’t just happen to you; you need to make careful, considered choices. Breaking them down into smaller bites makes it more likely you’ll succeed.

 

Related reading:

• Cards and consequences
• Filthy lucre
• Living the “pre-solvent” life