Or, at least, I used to be.
I’ve improved a lot since money smarts became part of my job, but for years I was genuinely terrible — earning irregular income, failing to save, clueless about where my cash went and unsure when my next paycheck would arrive.
Looking back, there were many small, easy habits I could’ve adopted to keep my finances in much better shape — even when I was completely broke.
If you’ve been struggling with money too, here are some things I learned that can help you get spending, income and debt under control.
Bonus: None of these tips demand much time or effort. I know exactly how little you want to think about finances if you can avoid it.
1. Find Out Who You Owe
One of the ugliest outcomes of ignoring your money is letting debt pile up into a huge, scary mountain.
From student loans to credit cards to medical bills from before the ACA, I covered my ears and pretended it wasn’t happening while balances crept upward.
Thanks to caller ID, I stopped answering unknown numbers — if debt collectors don’t get through, do they really exist?
That kind of avoidance was a nightmare when I finally decided to fix things. I knew I owed money, but I had no idea to whom I should send payments.
Credit Sesame saved me.
The app gives youa free credit snapshot — including a credit score — and supplies tailored tips and educational resources.
The bad part: my score was a dismal 528. Oof.
The good part: Credit Sesame presented an overview of my total debt and the elements dragging down my score — utilization, account age, inquiries, account mix and payment history — and it identified the collection agencies and creditors after me.
It also offered clear, personalized actions to help me improve my credit.
You can sign up and download the app here.
2. Start Paying Someone — Anyone — Back
Now for the tough stuff: you must begin paying down debt. When you’ve got a long list, it’s hard to know where to start.
Remember this: the most important thing is that you begin repaying debt.Anywhere.
When debt sits unpaid, interest and fees add up. The longer you delay, the more expensive it becomes.
To pick which debt to attack first, consider these two common approaches:
- The debt snowball, popularized by Dave Ramsey, recommends paying off debts one at a time beginning with the smallest balance. Crossing items off the list gives quick wins and motivates you to keep going.
- The debt avalanche, favored by many finance pros, advises paying the one with the highest interest rate first, no matter the size. That method minimizes interest costs and saves money over time.
The snowball approach works well for people like us.
We aren’t always driven by perfect optimization, but hitting a few small goals keeps us motivated to continue improving.
3. Track Where Your Money Actually Goes
To keep tabs on my spending, I rely onTrim, a Facebook Messenger or text-based bot that helps you stay accountable. It acts like a personal finance assistant living in your phone.
It shows me where my money is going (or being wasted) by displaying recent transactions whenever I ask. It even reveals how much I’ve spent on Amazon lately so I can see whether my impulsive e-book and gadget purchases are spinning out of control.
The best feature of Trim is its bill-negotiation capability with companies like Comcast, Time Warner, Charter and other big providers. It can also cancel subscriptions you no longer want (magazine subscriptions, gym memberships, etc.).
Because it’s a bot and doesn’t get distracted the way humans do, Trim keeps negotiating until it succeeds in lowering your bills. It’s free to use and keeps 25% of whatever it saves you.
Apps like Monarch Money are alternatives if you prefer a personal dashboard to monitor transactions and customize your financial view.
4. Make a Super-Simple Budget (No Spreadsheets Needed)
By now you won’t be shocked that I dislike budgeting.
My tastes and routines shift rapidly, so I can’t reliably predict how much I’ll spend on groceries, clothes or gas in any given month. In March I might be obsessed with kale salads; by June I’ll be back to mostly macaroni and cheese.
But one colleague found a budgeting framework I actually like. It comes from a 2006 book by Sen. Elizabeth Warren and her daughter Amelia Warren Tyagi.
The plan follows the 50/20/30 guideline:
- 50% of your take-home pay covers necessities: housing, food, utilities and minimum credit payments.
- 20% goes toward financial goals: retirement contributions, paying down debt, and saving for an emergency fund (or that splurge you’ve been eyeing).
- 30% is for lifestyle spending — living your life. Eating out, nights with friends, vacations and streaming services should be no more than a third of your budget.
Those straightforward caps help me keep spending reasonably organized without obsessing over spreadsheets and charts. (Mmm — pie. I should pick one up on my next grocery run.)
5. Begin Investing — Even a Little
Investing can feel intimidating, but you can start tiny.
Stash makes it simple to begin investing — and gives a $5 sign-up bonus. You don’t need a finance degree or to binge-watch every investing movie to use it.
Link your bank account, choose a modest recurring contribution, and Stash invests the money in the market based on themes or sectors you pick.
To get the $5 bonus:
- Download the Stash app.
- Connect your bank account and set how much you want to invest automatically each week.
- It likely won’t fund your entire retirement, but it’s a practical way to get comfortable with investing.
6. Consolidate Your Knotty Debts Into One Simpler Loan
You make monthly payments on credit cards, yet balances barely budge. High interest rates — sometimes 20% or more — can make progress feel impossible.
MoneyLion might help you secure offers that slash your interest rate dramatically, possibly as soon as tomorrow.
Here’s the idea: MoneyLion can match you with loans that have much lower interest — potentially as low as around 5.20% APR*. That’s a huge drop from the typical credit card rate and can be the key to finally getting ahead financially.
You could use the new, lower-rate loan to pay off your existing credit cards, leaving just one, cheaper monthly payment that accelerates your journey out of debt.
If your credit is at least around 620, you might qualify for up to $50,000 with no collateral required, and terms extending up to 144 months.
Worried you won’t qualify? It only takes a couple of minutes to check online and see if you might reduce your credit card interest rate substantially.
*Subject to creditworthiness. Average credit card interest rate was 24.72% as of 8/14/24, per Forbes Advisor’s weekly credit card rates report.
7. Deal With Student Loans (Yes, This One Matters)
Student loan debt is a different kind of headache.
It ties you to your school, the government, sometimes an unfamiliar private servicer, banks and occasionally collectors. Not pleasant.
To simplify things, one of my early actions after graduating was adjusting my federal repayment plan (a financial-aid advisor recommended it when I finally picked up her call).
I couldn’t afford the standard payments, so I applied for adirect-consolidation loan,which combined multiple loans into one loan with a weighted average interest rate and a longer payback period.
Afterward, I enrolled in an income-driven repayment plan to cap my monthly payments based on earnings.
If you have private loans or aren’t satisfied with federal consolidation terms, consider refinancing through a private lender instead.
Using a marketplace likeCredible, you can refinance federal and private student loans.
Credible links you to lenders who may replace several loans with a single loan that could offer a lower rate and/or smaller monthly payment, helping you save both now and over the long haul.
It may seem like a modest change, but a reduced interest rate can add up to substantial savings over time. For example, grad Ashley Williams reportedly saved more than $18,000 in interest over the life of her loan by refinancing.
Enter your details on Credible to see what new rate you might qualify for.*
*Rates vary, with fixed rates starting as low as 5.28% APR (with autopay), up to a 12.42% variable APR. Check Credible’s site for specifics.
Note: Refinancing a federal loan with a private lender eliminates federal protections and benefits such as income-driven repayment plans, deferment, forbearance and forgiveness options.
8. Don’t Forget That 401(k) You Opened Once
If you have a 401(k), you’re heading in the right direction. Just don’t abandon it.
I get it — retirement accounts are boring and confusing, and avoidance feels tempting.
Still, you need to verify your plan is working for you. Digging into the account and understanding what’s going on can be tough.
There’s a robo-advisor to help. Blooom, an SEC-registered investment advisory firm, will review and optimize your 401(k).
Several of us at Savinly Readers use the service. It offers a free initial 401(k) checkup, helping you learn what’s happening in your account. It can reveal excessive fees, inappropriate stock-to-bond allocation, and other issues.
After the free review, ongoing monitoring costs $10 per month. Tell Blooom your target retirement age and it will suggest a suitable investment approach to help you reach that goal.
9. Sell the Things You Never Needed
Fortunately, in my 20s — the era I was worst with money — I didn’t have much disposable income.
That meant fewer impulse buys. Had I been earning steadily, my closets would probably be full of tiny handcrafted pillows from art fairs.
If you’re fortunate enough to have extra cash and low impulse control,you likely have several regrettable purchases tucked away in closets, garages or drawers.
Decluttr buys old CDs, DVDs, Blu-rays, video games, consoles, smartphones and tablets. Scan items with your phone and Decluttr emails a shipping label. Pack it up, mail it, and the money lands in your account in a few days. (Use code FREE5 for an extra $5 at checkout.)
For nearly anything else, try letgo. The app lets you photograph and list an item in about 30 seconds, removing much of the hassle of selling online, and it’s free to use.
10. Stop Erasing Your Emails
Turns out, deleting emails might cost you real money. Curious?
One of our useful tools isCapital One Shopping Price Protection — a service that can get you refunds on online purchases. It’s free to join and can scan your email receipts. When it finds purchases from monitored retailers, it tracks prices and helps you claim refunds if the price drops later.
Additionally, if a guaranteed shipment arrives late, Capital One Shopping Price Protection can assist in getting money back for shipping costs.
Capital One Shopping Price Protection compensates us when you sign up using the links we provide.
11. Choose a Bank Account That Fits Your Life
What has your checking or savings account done for you recently? If your balance is often low, you may overlook the importance of choosing the right bank. Who cares about a high APY if you never keep money in the account?
Still, other features matter a lot, including:
- Minimum balance requirements
- Minimum monthly deposit rules
- Monthly maintenance fees
- ATM charges
- Overdraft policies
Weighing these elements when selecting an account can save you a surprising amount.
For instance, “overdraft protection” sounds convenient, but it can be risky. Yes, you may feel embarrassed if a card is declined at the checkout, but it can also prevent you from overspending and incurring massive fees.
Alex Monroe ( [email protected] ) is a senior writer/newsletter editor at Savinly. Say hello and share a good joke on Twitter @alexmonroe.
