Eight financial or money-saving tips courtesy of mom
This Mother’s Day let’s thank mom for all her pearls of financial wisdom. We’ve rounded up some of the best financial and money-saving tips that every mother knows to be true, including our in-house expert Anne Marie Thomas, one of the most spending-savvy moms we know.
Know how you’re spending your money
Create a budget to track what’s coming in and what’s going out. It’s one of the best ways to identify areas where you can save money.
There’s a difference between need and want
Anytime you go to make a purchase, ask yourself is that a need or a want? And if it’s a want, is what you’re paying for it worth it?
Avoid impulse purchases
Sales are great, but often lead to impulse purchases. If it’s something you didn’t even realize you needed or wanted, chances are you’ll regret buying it and you’ll have wasted your hard-earned cash.
Don’t spend money you don’t have
Use your credit card wisely and with discipline to ensure that you don’t dig yourself deep into debt. It takes a lot longer to get out of debt than it does to get into it.
If it sounds too good to be true, then it probably is
Don’t get scammed or tricked into spending money. Ask a lot of questions, and remember if it sounds too good to be true, it probably is.
Start saving early
Start saving early, especially for retirement because interest compounds and can really affect how much your little nest egg grows.
You need to save for a rainy day fund and an emergency fund too
A rainy day fund is for those unexpected bills that are bound to happen—sudden car repairs, a broken down dishwasher—and an emergency fund is for bigger life events like unemployment. Try to save at least three months’ worth of normal living expenses to avoid going into debt when the unexpected happens.
InsuranceHotline’s Anne Marie Thomas is a huge proponent of comparison shopping. Whether it’s for groceries or car insurance, Anne Marie knows there’s money to be saved simply by shopping around.
“We’ll price-match sales at the grocery stores to get the best deals, but too often we overlook that all it takes is a few minutes on the computer to find a better price for things like car insurance and home insurance too.”