50 Tips for Saving Money, Investing & Living a Happier Life

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1. No one ever got hurt taking a profit.  Consider selling some of your position, take some/all of your cost out, and then play with the house’s money.

2. There are few simple rules for building wealth over the long term:

        a. Spend less than you earn

        b. Invest the difference regularly

        c. Be patient and watch your investment returns compound over many years

3. The power of compounding is incredible. If you save $5,000 per year starting at age 25 and put it in the stock market and generate an 8% (average) return each year – by the time you are age 65, you will have nearly $1.4 million dollars. $200k invested (40 x $5,000) gets you $1.4m.  That's 7x your investment! Time, patience and compounding.

4. Shop your insurance policies annually with multiple carriers to make sure the prices are still competitive. Make sure you compare apples to apples coverage levels.

5. Every portfolio should consider a foundation of low cost index funds. The Vanguard S&P 500 index fund or similar ETF has incredibly low fees and outperforms most active money managers year after year.

6. Invest in 529 plans for your children’s education. Not only are all the earnings tax free upon withdrawal when used for educational purposes, many states give a tax deduction for the contributions. This is like getting free money from the government for your child’s education.

7.  When saving for college, put as little money as possible in your college age child’s name. Money in a child’s name is “assessed” for financial aid purposes at a much higher rate than money in the parent’s name.

8.  Annuities have incredibly high annual and early termination fees. They tend to be a poor investment over the long run.

9.  Don’t invest in anything you don’t understand.

10.  If you are married, learn to live on one income, because at some point in your relationship, you will only have one income .

11.  If you can afford to do so, pay twice the required principle payment on your monthly 30-year mortgage payment. You will pay off your mortgage in half the time and save thousands of dollars.

12.  Each time you get a raise, allocate a little more to your savings and a little more to your debt repayment. See rule #11 above.

13.  Try to put at least as much money into your company’s 401k plan as is required to maximize the “free” money given to you by your employer. As an example, if your employer gives you 5% for every 5% you put in, make sure you put in at least 5%.

14.  The fees on the investments in most company 401k plans are very high – and tend to be several times higher than those for the same funds outside of a 401k plan. Pay attention to them. Choose low cost index funds when you can.

15.  Friends are incredibly important. Be loyal to them and don’t forget to reach out to them regularly.

16.  Work hard at things that matter. There is no substitute for hard work.

17.  Professional success is less about intelligence than it is about hard work and confidence.

18.   Be prepared for opportunities and good luck.

19.  Admit when you make a mistake. Even better if you do it before anyone else notices you made the mistake.

20.  Try not to go to bed angry with your spouse.

21.  Talk to your grandparents about their parents and grandparents while they are still alive to share the family story. Record it for your own children and grandchildren.

22.  Take lots of pictures with your loved ones. You’ll be glad you did later.

23.  Try to appreciate the people you love. There will come a time when some of those people will no longer be there.

24.  Pay by credit card when you can. You not only can earn reward points or cash back, you have recourse when there is a problem.

25.  Only follow rule #24 if you are committed to paying your credit card balance in full every month. Credit card debt is one of most expensive forms of debt one can have.

26.  Some credit cards pay up to 2% cash back on purchases across the board. That’s a lucrative reward and the cash can be used for anything.

27.  If you have health issues but want to purchase life insurance, try to purchase the most you can via your employer’s group coverage. There are no medical exams and sometimes these policies can be converted to individual policies if you leave your employer.

28.  Many expensive drugs have “savings cards” from their manufacturers. Look them up online and you can often get significant co-pay and deductible rebates.  Apps like GoodRx can be really helpful too.

29.  Try to be honest all the time. Sometimes that can be painful, but it is not only better for your reputation, it is better for your soul. Besides, over time, it is too hard to remember all your lies.

30.  Always ask for what you really want. If you don’t ask, you don’t get. Besides, the worst that can happen is they say “no.”

31.  We usually regret the things we didn’t do in life a lot more than those we did.

32.  When you hire a contractor, get references from previous jobs and talk to them.

33.  When buying something online from a major retailer, search for promo codes to reduce the price or get free shipping.

34.  Read the news every day. It makes you a smarter, more well-rounded person. The Wall Street Journal has always been my favorite…but the New York Times and Washington Post are well written. 

35.  Don’t let people bully you.

36.  Don’t speak meanly about people behind their back. They will probably find out about it anyway.

37.  When you love someone, you will know it.

38.  Spend more time with your children when they are little. They won’t be little long and you will miss that time dearly when it is gone.

39.  Bacon, when added to a sandwich, can cost you a dollar or more. The same bacon added at a salad bar that charges by weight costs only pennies.

40.  Stocks are one of the few long-term wealth builders. 

41.  Find a way to invest your savings regularly.

42.  If you aren’t willing to do homework on individual stocks, stick to low cost index funds. 

43.  Find a career that you are passionate about. You are likely to be doing it for a long time.

44.  Marriage is hard. It takes work. No one is right is all the time.

45.  Don’t be so sure about your facts. You may be wrong.

46.  Sometimes the other side is right. Listen to their arguments.

47.  Hug the people you love on a regular basis. Tell them how much you love them.

48.  It feels good to help others – especially when you are sad.

49.  If you live in a state that allows competition for gas and electricity, shop around for the lowest rate. You can save a lot.

50.  Call you cable company once a year to complain about the high cost and ask for a discount.

A Bonus Tip:

Have a side hustle. Do something in addition to your main job that you can do on the side to make extra money. Tutor, drive an Uber, manage people’s money…whatever. Not only is it extra money --- but insurance in case you lose your main job. Who knows, one day it might become your principle source of income. 

For 5 Tips on How to Pick the Right Investment Advisor for you, click here.