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Top money skills you have got to have as a millennial to live richly. Not sure about you, but am I the only one that wants to get rich in 2020?
Living rich is about being wealthy but not necessarily the way you might be thinking.
Sure, living rich can be about having a ton of money and living a super luxurious, wealthy lifestyle but it’s also about being rich in culture, rich in family and support. And just having and leading a rich and fulfilling life.
So I’m gonna share some top money skills to help you get there and yes money can help you become wealthy as well as live rich in other ways and I’ll teach you how. Keep reading.
Top Money Skills Required for a Rich Life
Did you know that becoming rich doesn’t mean making more money necessarily?
There are a ton of ways that you can change your lifestyle and habits to help you become rich, like saving money.
You want to be be financially mindful and make small changes to help you grow your wealth and ultimately become rich. This post will show you some small ways to save money and grow your wealth in the process, like investing in meal prep containers instead of buying disposable plastic bags, for example.
These methods will beef up your wealth in no time. Take a look!
1. Money Skills #1 | Save Money
It’s all about using practical money skills.
The first step to building your empire is do you have money in the bank can you do that by saving money. Regardless of how much or how little you might be making you can still save.
Here are some tips and tactics to help you start saving money beginning this month.
- Start a savings account
- Pay yourself first
- Savings goals
- Check your progress
- Keep pushing
Open a Savings Account
The first step to starting to save money is to actually have a savings account.
So if you don’t have a savings account make sure you open one. A savings account can be opened with your local bank or you can check with an online bank to open a savings.
I recently joined Chime which which is an online bank and I absolutely love them. Here’s my link if you want to join Chime and if you refer your friends and they open direct deposit, you both get $50 so if you let them share them.
Pay Yourself First
when you get your paycheck, make sure to automatically distribute a set amount of money to your savings account. This is called paying yourself first.
So the whole idea is that when you get paid the money will instantly hit your savings.
And there’s no work that you have to do at all. You won’t touch the money and you will just start saving on auto pilot.
It’s a really easy way to start saving money. It’s automated and you won’t be tempted to spend that money.
Put Yourself on a Budget
Budgeting is so crucial to your savings plan. Budgeting is really simple and it’s all about monitoring your spending habits so you don’t overspend. This can help you avoid living paycheck to paycheck. You also eliminate the stress that you have revolving around money.
Try Mint. This app is so awesome. It’s free and easy to use. I use Mint myself and love it!
Create Savings Goals
Creating goals is a good way to start moving toward objectives that you have in the future. So if you have a goal of saving say $10,000 make that a savings goal and start moving towards that.
Check in on Your Results
there’s really no point in making goals for yourself if you don’t check in. You have got to monitor your results and see how you’re doing along the way so, don’t forget to check in periodically and see how you’re doing.
This does give you some great motivation to keep pushing and moving toward your savings goals. This could be something as little as checking your results once a week or once a month. It’s super easy.
Keep Pushing Yourself
This one is simple, just keep pushing and moving forward. There may be obstacles that fall in your way but you can get through it and you can meet your goals. There are tons of ways to save, like getting free Netflix (one of my favorite hacks) to satisfy your entertainment needs.
2. Money Skills #2 | Check Your Credit
You get one free credit check per year.
Make sure you’re taking advantage of it. Checking your credit every year is a great practice to have to make sure your credit report is free of errors and your credit is maintaining and improving over time.
I personally use credit karma to check my credit, but there are a ton of other places we can go to get free credit reports to you.
Now, your credit report is free which means you can see the contents of your credit like your accounts and balances but your credit score may not be free so if you’re curious about your score you may have to pay a small fee to see that when you check your credit annually. I just wanted to share that says there’s no surprise there.
If you find that you have weak credit and you want to improve it, that’s definitely a great decision.
You won’t use your credit all the time but in life you will probably need credit for those large purchases like buying a house or buying a car.
How to Build Your Credit
And if your credit is poor, that could mean literally adding hundreds of dollars to your monthly payment or worse, not qualifying for that asset (house or car) at all.
You don’t wanna find yourself in that position so if you have bad credit I highly recommend that you get with a credit repair company to help improve it. I do have a recommendation for that, it’s the company Lexington Law.
I have many friends and family members that have used Lexington Law to help rebuild their credit.
You pay them on a monthly basis and they have several plans to fit every budget so you can definitely find an affordable option for you.
You won’t be paying them forever. The goal is to work with them to help eliminate credit errors, dispute inaccuracies, get bad credit items off your credit report and other strategies and tactics that they use to improve your credit.
They have a helpful app where you can monitor everything and they email you often throughout the month to keep you updated on how things are progressing.
They also tell you when late items or negative reporting items have been taken off your credit report and they track everything so you can see how your score and credit is improving over time. You can check out Lexington Law here.
3. Money Skills #3 | Reducing Your Spending
The truth is we all spend money unnecessarily sometimes. And many times it is those little purchases right under your nose that you don’t even realize are drying up your bank account every single month.
There are ways to reduce your spending and live richly, be happier, eliminate stress, and gain peace of mind.
First, track your spending. This can be challenging to do manually so I recommend you use an app. I use the Mint app which I also use for budgeting.
They put all of your spending into different categories and they’ll alert you when you’re spending more for the month so you can back off of that.
Like, for example when the pandemic hit, like a lot of people I was buying a lot of food. I wasn’t necessarily hoarding or stocking up but when something in life is out of your control, sometimes you want to try to gain a little control in any way you can and for me that was through making sure my family had plenty of food.
The whole idea of this was really to eliminate the need to go to the grocery store often.
Before, I would go grocery shopping around once a week but I had to change that to around once every month to month and a half, just so I didn’t have to make frequent trips and be around people so I could stay healthy.
Other ways to reduce spending:
- Lower your utility usage
- Cut back on subscriptions (like subscription boxes, etc.)
- Cut the cable (we went from $200+ per month to around $30 with streaming providers like Hulu and Netflix)
- Cook at home
- Stop eating out
- Enjoy no-spend weekends
- Exercise at home
- Do your hair and nails at home (no more salon visits)
These changes do not have to be permanent so don’t panic but they are easy ways to cut your spending so you can start saving more and moving more quickly towards your money goals.
4. Money Skills #4 | Invest
Investing is so much fun. If you’re a beginner and new to investing, don’t let it overwhelm you. Investing is just a good way to have your money work for you and today there are more and more tools and apps than ever to help you start investing easily.
I really like Acorns. You can sign up for Acorns for free and it helps you invest your spare change. So you link it to your bank account and it kind of works on autopilot, investing your spare change for you.
They have a really neat app to help you monitor everything too.
5. Money Skills #5 | Pay Off Debt
Work toward paying off your debt. If you’re deciding between saving and paying off your debt, saving should always be done first and paying down your debt should be done second.
But if you have extra money available, throw that toward your debt so you can pay it off that much faster. I paid off my car loan in under six months. I read stories of others paying off student loans and mortgages and other kinds of debt quickly too.
Refinancing and Consolidation to Lower Your Debt Load
You can also consider refinancing or consolidating your debt.
I did this with my student loan several years ago and it helped me lower my payment and drastically reduce my interest-rate. So it was a win-win all around.
Keep in mind, every time you refinance, you don’t necessarily save. Although you may have a lower monthly payment, if you extend your term that means that you are paying more overall in the long term. Though, this may be a necessity for some who are struggling to pay bills every month.
Like if you can refinance a car loan to lower your payment by $100 every month and you need that hundred dollars for living, by all means do it and when you get back on your feet you can look at paying that down over a quicker pace to make up for anything.
Simple Trick for Payment Relief If You’re Struggling
And, if you’re struggling or living paycheck to paycheck, a neat tip a lot of people don’t know is to actually reach out to their creditors.
Your creditors are on your side, believe it or not.
They want to get paid and if you talk to them to keep them in the loop, letting them know what’s going on, they can assist you by offering payment options, payment delays, forbearance or other ways to help you keep the account in good standing, keep your services, and pay your debt.
Money Hack for Debt Payoff
Ask this company to pay your credit card bill this month. Not, just the minimum payment, the whole bill!
Think about all the debt you racked up on that card, funding your vacation last year, attending your bestie’s destination wedding, “treating” yourself to a great Christmas, etc. Now, breathe a sigh of relief at the opportunity to have this website pay off your entire bill!
Curious how it works?
Is your credit card company ripping you off?
Do you have an insane interest rate or pay a monthly or annual fee? Credit card companies get rich off consumers. There is a way out though.
A company called Even could pair you with a company that pays off your whole bill, as early as tomorrow!
Here’s how it works: Even will match you with a loan that’ll cover your credit card tab. Use that loan to pay off your debt, then make monthly payments to repay the loan. Easy!
The benefit is lowering your monthly payments and help in paying off that debt a lot faster! And, no credit card payment this month! Bonus!
Even Financial is free and easy to get started with.
You can actually check online to see what you qualify for, in about 60 seconds (and it doesn’t affect your credit score).
No waiting in a bank lobby to speak with a personal banker.
No hanging on the phone, waiting in a queue to talk to a representative.
Find out instantly, online, painlessly with Even.
Is it worth it?
We think so.
And, you can stop kicking yourself for indulging in buying that 75 inch TV for yourself as a Christmas gift to you!
This Woman Saved Almost $2,000 Instantly
Imagine going from paying $200/month to $50!
That’s a huge savings, at $150/month.
What could you do with $150/month?
- Save it
- Pay it toward other debts
- Stash it away in your retirement account
Through consolidating your debt, this could be you!
By refinancing, she was able to save money, lower her interest rate and save money on the spot.
Not to mention, she skipped a month’s payment, which got put right back into her pocket.
Want to see if this will help you get rid of your credit card debt? Visit Even’s website and get an answer in under a minute.
6. Money Skills #6 | Side Hustling
Oh my gosh, getting a side hustle is something you definitely want to do!
Its a top money skill to keep in your back pocket.
With a side hustle, that means that you’re making more money you can save, save faster, invest more and pay off your debts more quickly.
If this is an option for you, definitely jump on it.
My First Side Hustle
Shortly after college when I landed my full-time job, a few years into it I found myself wanting to make more money.
Although I wasn’t struggling or living paycheck to paycheck I just wanted more so I took on a side hustle and that was copywriting.
I did that for several months until I landed my side hustle in online retail which ended up affording me the opportunity to quit my day job because I was making so much money in that side hustle! I won’t go into that story as you’ve probably heard it before.
I mentioned it often on a blog but in a nutshell I started an online store while I was working my 9 to 5 and about a year into it I was able to replace my day job income so I quit that job and ran business full-time!
And in its peak I was making up to $30,000 per month.
This happens all the time to entrepreneurs all over the world. Their side hustle outpaces their day job and when this happens, you’re in the awesome position to leave your day job and many people do. And so that’s how it went for me.
Skills That Make Money
Do you have these skills that make money?
- Excellent communication
- Fast typist
- Basic computer skills
The core practical money skills can help land you a ton of different side hustles.
Here are 13 online weekend jobs to check out for side hustle income.
7. Money Skills #7| Invest in Real Estate
I’ve already touched on investing a bit up above but this is a little different and it’s about investing in real estate. Many people think that you need a ton of money to invest in real estate. Real estate investing goes beyond flipping houses or buying foreclosures or tax liens. You can actually invest in real estate with very little money with sites like Fundrise.
Fundrise let’s you get a piece of the pie by investing in a real estate portfolio with very little money up front. This is a cool way to make a lot of money with little investment to start. This company really gets me excited and I recommend you check them out.
Other Ideas to Up Your Money Skills and Upgrade Your Life
Instantly save an extra $500 per month. Here’s a deep dive how to do just that!
Why Save Money?
Saving money provides so many benefits, from more peace of mind, money aside for a rainy day, a cushion to help break the blow when an unexpected expense arises, etc.
Last summer my husband needed 3 root canals?
Ouch! Do you know how much one root canal costs?
Mine a few years ago was $1,000 WITH dental insurance.
And, I needed a bunch of small repairs done to my car (in the same summer) in order to pass state inspection, including tires, brakes, etc.
That put me back almost a $1,000.
These are life things.
It happens to everyone.
Nobody is immune.
So, when you have to make an emergency trip because of a funeral, or you have to pay that car insurance deductible because somebody hit your parked car in the grocery store parking lot, or your need to pay medical expenses, or other reasons, a SAVINGS ACCOUNT WILL SAVE YOU!
Saving is good.
And, it’s pretty easy to do.
Here are 22 effortless ways to save $500/month! And even more ways down below how to save $1000 fast!
How to Save $500/Month Starting This Month
You can save more by making more and by saving more. Making more money means you have more disposable income, that you can put towards savings, among other things.
And of course, saving money helps you save, right?
Making Money Money to Save More Money
1. Take surveys (this company is popular and a fun, free way to make money daily)
2. Start an online store (I opened a little e-commerce store and made around $500 my first month easily, on 1 hour per week)
3. Start a blog (I went zero to $1,000/month in just 4 months on my first blog)
4. Freelance writing
5. Freelance graphic design
6. Digital marketing
7. Get an online job
8. Get paid to shop (with this cashback website)
9. Monetize your social influence (start getting paid to be a social media influencer)-this training shows how to reach $10,000/month working with brands
10. Write ebooks
11. Create online courses
How Can I Save $1000 Fast?
12. Save money on groceries with
17. Move (move in with roommates or move back home temporarily)
18. Sell your car (and take public transit or bike/walk where you need to go)
19. Set up your direct deposit to pay yourself first
20. Create a budget – I use Mint
21. Track your spending
22. Get a personal finance app
Increasing Your Income by $1,000
Increase your income by $1,000/month by consolidating your debt. Hang on with me for a sec, let me explain.
First, think about your debts. You have…
- Credit cards
- Student loans
- Auto loan
- Personal loan
- Other loans possibly
Each loan or credit account has an interest rate and monthly payment. If you combine them all into one, you can likely lower your interest rate, and lower your monthly payment.
I did this my student loans a few years ago and went from $200/month or so to $50/month!
Let’s look at an example..
- 1 credit card 10% $2,000 balance
- 1 student loan 5% $10,000 balance
- 1 student loan 11.99% $8,000 balance
- 1 auto loan 8% $5,000 balance
The average of the interest rates is 8.74%.
What if you could combine all those debts for an interest rate lower than that?
Or, what if you could negotiate your balances lower to reduce your payments?
These are just some of the options that may be available with this company.
Are you tired of debt controlling your life?
Debt is hard to ignore.
It’s easy for your debt balances to balloon out of control and take over your entire life. It can feel overwhelming and become more and more difficult to fend off the collections calls.
How can things change?
You have to find a company that can work on your side to help you reduce your debts.
These professionals have these amazing accolades:
- TopConsumerReviews – rated #1 for Debt Consolidation
- TopTenReviews – rated #1 for Debt Consolidation
- ConsumersAdvocate – rated #1 for Debt Consolidation
- ConsumerAffairs – rated #1 for Debt Consolidation
- 40,191 reviews on ConsumerAffairs with a 4.83 out of 5.00 rating
- 24,642 reviews on TrustPilot with a 9.4 out of 10 rating
What People Are Saying Working with Them…
They really care about “you” and making your life easier. They answer all of your questions and are very detailed.
I was up to my eyeballs in debt and National Debt Relief saved me from drowning in the debt.