What is minimalism all about?

To put it simply, minimalism is a lifestyle choice where you focus on living with less. It involves reducing the clutter in your life, minimizing distractions, and being more mindful of your priorities and consumption.

Minimalism doesn’t have to involve living out of a suitcase or only owning five shirts. It’s what you make it. You can choose to reduce your consumption however you want.

As it has grown in popularity, minimalism is often touted as the ultimate way to improve your finances.

The reasoning goes that if you just became more mindful of your spending then you could dramatically reduce your expenses, reach your financial goals, and feel less stressed about money.

I disagree, and here are a few reasons why.

You Can Only Cut Back So Much

 
One of the big topics in personal finance is the spend less vs. earn more debate.

People who advocate for spending less say if you targeted the mindset and behavior you have towards money, then you could reduce your expenses and get better with your finances.

The earn more crowd says spending less isn’t helpful because there is a limit to how much you can cut back on. As for earning more, there is unlimited income potential.

Both sides have strong points, but ultimately it comes down to growing the gap between what you’re baseline expenses are and your income amount.

Minimalism is just a dressed up version of the ‘spend less’ side. Are there advantages to cutting out the clutter in your spending? Absolutely. However, for many people, it’s not going to yield some drastic amount that cures your financial woes.

Earning more allows you create additional income to reach your goals. Mind you, it isn’t a simple solution. Creating and growing an additional income stream takes time, hard work, failure, and experimentation, but the work can yield more positive results than just cutting your spending.

Side Hustles Are Valuable

 
Having a side hustle. It’s a common thing in this society of wage stagnation, paltry raises, and layoffs. It’s become a buzzword and the go-to thing for millennials looking to level up in their finances.

You hear about side hustles a lot. The hardest thing for many people is choosing one to do and finding time for it.

There are a vast amount of different side hustles you can do. There are people self-publishing books, freelance writing, doing graphic design, marketing, blogging and more.

Side hustles are valuable. They’re valuable beyond the obvious benefit of additional income. They can give you and teach you more than what mindfulness and decluttering will do.

Decluttering your stuff and cutting back your spending are quick wins. They’re something you can start doing right away. You can get rid of some of your stuff, cancel your subscriptions and you’re able to free up some room in your spending.

What happens if you’re already living on a bare bones budget and don’t have lots of things to sell off? You get stuck.

Side hustles are different. They require research and experimentation. They give you fulfillment you might not get from your job, they allow you to learn more a lot about yourself while earning more in the process.

Life is Expensive

 
There was a bad storm a few months back where my dad lives. Several trees snapped and fell over in different parts of the town. A few of the trees ended up falling on top of the room of his house causing tens of thousands of dollars in damage.

Insurance covered most of it, but my dad ended up having to pay $8,800 to cover the rest. Hearing that amount made me wince.

In the news, I constantly hear about the ever-rising cost of homes. They keep rising at a rapid rate while wage growth continues to move at a snail pace. Texas, where I live, is known for having somewhat reasonable housing prices.

Even with that in mind, the housing prices here are continuing to rise rapidly. The only way many people have been able to buy a house is through family assistance, a high-paying job, or by working additional jobs in order to save up for a down payment.

Life is expensive.

Unexpected bills pop up all the time. Reaching big financial goals like homeownership, a wedding, or saving for things like travel can be hard.

Practicing minimalism can maybe net you a few hundred extra in your spending, but it probably won’t help you reach your financial goals when you want.

You could argue about how some have had a drastic change in their finances from practicing minimalism. It’s true, some have, but for most, it won’t make a massive difference.

A big thing problem I have with a lot of minimalism money articles is how they always focus on one type of story: a middle-class person or couple who decided they were spending too much, had an epiphany, and then eliminated things from their spending and were able to achieve peacefulness.

They cut their cable, got rid of their car payments, moved to a cheaper apartment and doing all of those things is what allowed them to get control of their money.

What about people that do that stuff already?

Decluttering and spending less is important but it’s not the ultimate key to help your finances.

Bottom Line

 
Minimalism has its positives. Everyone should limit their consumption and be more mindful.

I just don’t think it can help in the drastic way many articles would have you to believe. It may help in the week to week to cut a little, but for your long-term goals, it’s better to brainstorm different ways of improving your finances.

It doesn’t have to strictly involve getting a side hustle. It could be negotiating a raise at your job, learning new skills to expand your career, and focusing on growing the gap between your expenses and income.

 
 
Do you practice minimalism? Do you think it can be a good way to help your finances?
 
 

If you DON’T already have an emergency fund, don’t worry – read this post about how to create a mini emergency fund in just 1 month!

Emergency funds are great. They give you comfort to cover unexpected expenses without wrecking your finances.

A sense of peace comes from having an emergency fund. You don’t have to worry about how to meet your expenses if a job loss or car repair were to happen. An emergency fund has your back.

Building one is a feat in and of itself. It can take months or years of diligent saving before reaching a fully funded e-fund.

Once you do end up getting the recommended three to six months of expenses, you’re left to wonder. What’s next?

You’ve spent all this time cutting back, making more, and saving. What comes after? Without a plan in place, it can be easy for lifestyle inflation to creep up on you.

In order to stay on track and reach your financial goals, here are some things you can do after building up an emergency fund.

1) Pay Down Your Debt

 
Debt is a huge burden for many people. It limits your options, creates more stress, and commands a lot of your attention.

Whether you’re having to deal with student loans, credit card debt, or auto loans, you should get a handle on them. No matter how much debt you have, it’s important to get clear on how you will go about repaying it.

If a high-interest rate is limiting your progress, look at your options. Consider refinancing your student loans or transferring your credit card debt to a balance transfer card.

Get on a debt repayment plan. The two most popular ones are the debt snowball and debt avalanche methods.

The debt snowball method involves paying down the lowest debt balance first. The debt avalanche method involves paying off the debt with the highest interest rate first.

On paper, the debt avalanche method is the best one since you’re saving more money by getting rid of the highest interest debt first. Although, many people swear by the debt snowball method since it allows you to celebrate “quick wins” from paying off the lowest balances first.

Choose which one works best for you.

2) Save For Retirement

 
Now that your emergency fund is fully funded, you can put a greater emphasis on saving for retirement.

Saving more for retirement allows you to grow your wealth faster. The more you contribute, the sooner you are able to reach financial independence.

If you’ve been contributing to an employer-sponsored 401(k) plan provided through your job, consider upping the contribution amount. If you’re currently contributing 5% of your pay, up it to 10%.

Make sure you’re contributing enough to get the employer match. For example, if you’re employer offers a 4% match, then contribute at least 4% so you’re able to get the full employer match. You don’t want to turn down free money!

If you don’t have access to a 401k through your job, you can open your own investment account through an online brokerage like Vanguard or Betterment. There are some online brokerages that let you get started investing for as little as $10.

Remember, it’s not too late to start saving for retirement. Don’t get discouraged if you can’t max out your accounts or contribute a lot.

The important thing is to start contributing and do it consistently.

3) Track Your Net Worth

 
Your net worth is a useful thing. It can be a helpful way to gauge where you stand in your financial journey.

What’s your net worth? It’s your assets minus any liabilities you have.

Your assets are essentially everything you own. Liabilities are everything you owe. Assets would include things like your vehicle, home, personal property, investment accounts, and bank accounts, Liabilities would include things like credit card debt, student loans, auto loans, and medical debt.

Using a free service like Personal Capital, allows you to pull together all of your assets and liabilities and track your net worth in real time.

Knowing your net worth can be a powerful way to chart your progress. You’ll be able see if you can really afford something. Getting a full picture of your finances.

4) Spend Less

 
You’re probably already familiar with this. While building your emergency fund, you probably got used to analyzing your expenses and cutting your spending.

Don’t become too comfortable. It is worth it to go through again and see if there is room for any further adjustment. Consider negotiating your car insurance. Call in and get your internet bill lowered. Look into cheaper alternatives.

Get creative with how to maximize your lifestyle while living on less.

5) Monitor Your Credit

 
A good credit score is essential to being able to secure good mortgage interest rates, getting approved for an apartment, cell phone, and in some cases even to be considered for employment.

Aside from the advantages of good credit, a big reason to monitor your credit score and report is to make sure no one is stealing your identity. Last year, Equifax had a massive data breach that exposed thousands of people’s sensitive information.

It’s important to periodically keep an eye on your credit to make sure there are no alarming incidents or breaches.

You can check you credit score for free through Credit Sesame and get a free annual credit report through annualcreditreport.com

6) Do a No-Spend Challenge

 
No spend challenges can be a great thing to do, no matter where you are in your finances.

A no-spend challenge can be done a few ways. You could choose to not spend in problem areas or impose a total shopping ban by not spending money on anything outside of necessities.

You can do them for a weekend, week, or one month. They’re challenging but effective to do. I’ve done them in the past, journaling in the process, and have always finished them with a new sense of how I spend money.

They can be a good way to get clear on your values and how you want to prioritize your spending.

7) Set Long-Term Goals

 
You don’t want to work towards something without somewhat of an idea of the end goal. What are your long term financial goals you’re eager to reach?

Do you want to travel more, buy a house, change careers, or retire early? Maybe you want to do a mixture of several. Whatever your goal is, get clear on it.

Spend some time and write down your goals. Reflect on what your need-to-haves are vs. your nice-to-haves.

Writing down your goals can keep you motivated on your path towards building wealth.

8) Educate Yourself

 
You’ve saved up a fully funded emergency fund, so I’m sure you’re no amateur when it comes to personal finance knowledge.

However, don’t rest on your laurels and allow your knowledge to end. Keep learning, reading, and uncovering more.

Read personal finance books, learn new skills to leverage new opportunities. Be open to expanding your mindset.

 
 
Have you saved up a fully funded emergency fund? What things have you done after building one?
 
 

There are lots of people freelancing and they’re doing it across several fields like writing, design, digital marketing, virtual assisting, and web development. People are doing a side hustle to make extra money or they’re doing it in hopes of making it their new full-time job.

There are freelancers who are hitting it big and making lots of money doing something they like. However, you can’t expect to get started and make the big bucks right off the bat. Freelancing takes time, discipline, and motivation.

Whatever your freelance goals are, the hardest part about freelancing is getting started. When you’re first starting out, you usually don’t have much or anything of a portfolio and it can be tricky figuring out how to get clients.

At some point, you will probably be faced with having to decide if you should work for free or not.

If you were to ask a group of freelancers if you should work for free, the answer would usually be a universal ‘no’.

Working for free isn’t ideal. In most cases, it’s not worth it. Although in certain situations it can make sense and even be good to work for free.

Here’s when freelancers should and shouldn’t work for free.

It Can Lead to Something More

 
Your portfolio is the equivalent of your resume when it comes to freelancing. I’ve rarely had clients ask me for my formal resume when I pitch them for work.

A strong portfolio can showcase the work you’ve done, your expertise, and the results you’ve been able to get. In order to succeed as a freelancer, you need to have a good portfolio.

The problem is when you’re starting out, you don’t have much of a portfolio.

As a new freelancer, working for free can be a great way to build your portfolio. If you’re looking to be a freelance writer, consider doing some unpaid guest posts on different sites. Do some sample design work if you’re looking to get into design.

Have a destination clients can go to to see your work. A blog or website is great for this. Start a blog or website and use it as a portfolio to showcase the different work you’ve done.

Clients want to know you can do the work you say you can do. They want a freelancer who can help get results for their business and make their lives easier. Sometimes they are hesitant to hire a new freelancer who doesn’t have much of a portfolio.

Doing a free gig could potentially lead to something more. Maybe the client will see the work you’ve done and hire you or refer you to others for paying gigs. You never know.

That being said, it’s important to be strategic about which free gigs you take on.

Choose Free Work Carefully

 
Doing free work as a freelancer can lead to something more, but that doesn’t mean you should take on just any unpaid opportunity.

Make sure the free work you do aligns with the skills and expertise you want to be known for when looking for paying gigs.

There are a lot of sketchy individuals and spammy companies out there. People who will gladly take your unpaid work and give you nothing in return. Even though you aren’t getting paid, you should still get something out of doing the work.

Set yourself up for success by establishing some guidelines with your client for the free work you will be doing. Get to know them. Ask them if they would be able to give you a testimonial or refer you to others.

Establish how the unpaid work will be used. Will it be used just to evaluate your knowledge or will it be published and distributed, thereby benefiting the company?

Factor in the time it will take to complete the free work and set client expectations accordingly.

If you’re looking to be a freelance writer, consider how doing an unpaid post will help you. Is it a guest post that will help drive traffic to your site and get your name out there? Is the piece something you can link to on you blog or website to use as a portfolio piece?

Get clear on how the work will help advance your freelancing endeavors.

When Doing Free Work Isn’t Worth It

 
If you’re an established freelancer with a portfolio of work, then most of the time it’s usually not worth it to work for free.

Working for free is mainly beneficial when starting out in your field. Don’t devalue your craft. Charge what you’re time is worth and let people know your value by showcasing the work and results you have gotten from past clients.

If you’re approached to do work for free, offer some alternatives like doing a short trial period at your regular rate to see if you and the client would be a good fit. Refer a hesitant client to your testimonials page and portfolio of work.

It takes time and dedication to build a freelance business. When you’re starting out with not much experience, it can make sense to do some free work. For established freelancers, doing free work usually isn’t worth the time.

Figure out the best step and do what’s right for your freelance business.

Related Posts:

• How to Start Your Own Blog

• 5 Tips for New and Wannable Freelancers

• 3 Questions to Ask When Deciding on a Freelance Gig

• 6 Tips for Pricing Freelance Services

 
 
If you’re a freelancer, have you ever worked for free? Do you think it’s a good idea?
 
 

While these are all great, what do you do when it comes to retirement savings? Without a traditional employer-sponsored retirement plan, like a 401k, you’re on your own when it comes to saving for retirement.

It can be easy to let it slip through the cracks when you have a full workload to do. Client work, deadlines, and admin tasks can take most of your time and attention. A fluctuating income and workload can make saving feel impossible.

You aren’t the only one. In fact, according to a study by Freshbooks, 42% of self-employed professionals and small business owners are not preparing for retirement.

Wherever you are at with freelancing, it’s important to not put off saving for retirement. It doesn’t matter whether you’re just starting out or have an established business, saving for retirement when you’re self-employed should be a priority.

Let’s see how you can best go about doing it.

Save With a Traditional or Roth IRA

 
Traditional or Roth IRAs are popular options because they are usually easiest to set up. You can open one with an online brokerage like Vanguard or Betterment. They are open to anyone with earned income, though there are income limits.

With Traditional IRAs, contributions are tax-deductable provided you meet income requirements. Your contributions and earnings grow tax-deferred till you reach retirement, during which withdrawals are taxed. If you have an old workplace 401k, you could roll it over into a traditional IRA.

Roth IRA contributions are made with after-tax income. Your money and investments grow tax-free and there is no tax on withdrawals during retirement.

Due to the low contribution limits of Traditional and Roth IRAs, they probably won’t be able to cover your entire retirement. However, they can be a great starting point.

Here’s some specifics:

• You can contribute up to $5,500 of earned income for the year 2018 ($6,500 if you’re 50 or older)

• You can start withdrawing from your account penalty-free at age 59.5

• You can withdraw your contributions penalty-free and tax-free, before age 59.5 but not earnings. If you withdraw earnings, you will pay taxes on the amount and incur a 10% penalty.

• If you’re single, you can contribute the full amount if your annual income is less than $120,000 in 2018. If you’re married, you can contribute the full amount if you and your spouse’s income is less than $189,000 annually in 2018.

Save With a Solo 401(k)

 
A solo 401(k) is for businesses with no employees (one exception is a spouse who is an employee). It can be great for high earners because of its high contribution limits.

Contributions can be made both as an employee and as the employer. As an employee of your own business, you contribute just as you would to a traditional employer sponsored 401k. As the employer of your business, you can made an additional contribution based on your self-employement net earnings.

A Solo 401(k) is great if you’re looking to save a large amount of money for retirement.

• Contribute up to $18,500 in 2018 ($24,500 if you’re age 50 or older)

• In addition to contribution limits, you can contribute up to 25% of your net earnings from self-employment for a total contribution of $55,000 for the year.

• You can’t use this plan if you have or anticipate having employees as part of your business (other than your spouse)

• A solo 401k works like an employer-sponsored 401k, your contributions are made pre-tax and withdrawals after age 59.5 are taxed.

Save With a SEP IRA

 
A Simplified Employer Pension IRA allows you to save a portion of your business earnings. The investment account is best for self-employed people with no or few employees.

• The maximum contribution limit is $55,000 or 25% of net self-employment earnings for 2018.

• Contributions are tax-deductible and tax-deferred, so you will pay taxes upon withdrawal

• No catch-up contributions like other investment accounts have.

• You can deduct your contributions or 25% of net earnings, whichever is lesser, on your tax return.

• If you have employees, you must contribute an equal percentage amount to the percentage amount you contribute to yourself as an employee.

What is the Best Option?

 
There is no one-size-fits-all answer when it comes to the best investment account to use. Assess your situation and business model and go from there.

Saving for retirement when you’re self-employed can be tough. Ideally, choose a plan that grows with how you want your business to grow. You don’t want to have to go through the time-consuming task of switching plans as you grow your business.

Set up a free account with Personal Capital so you can get a full picture of your finances. Inside the service, you can track your cash flow and net worth. Use the service’s retirement planner to make and set goals for your finances and retirement.

Talk with a certified financial adviser to figure out your options. XY Planning Network has a network full of fee-only fiduciary financial advisers who can give you financial planning with your best interest in mind.

The important thing to remember is to just start. Don’t put off saving for retirement because it feels far away. Start saving now, even if it’s a small amount.

 
Related:

• How to Catch Up on Retirement Savings

 
 
Are you self-employed? How do you save for retirement?
 
 

Growing up, we were sold an idea of what a life should look like. It went along the lines of getting into a good college, graduating, getting a job, and then staying in that job for years and years, moving up the corporate ladder.

As we’ve navigated adulthood, a lot of us have learned that that particular path doesn’t always work out. Career paths aren’t always linear.

It’s been said millennials do a lot of job hopping. We’re seen as never being satisfied with our work. Changing jobs every few years.

Are millennials really ditching jobs more often than other generations? Let’s look at what the research tells us.

Job Hopping Isn’t a New Trend

 
Research sends mixed messages about millennials and job hopping. Some research seem to prove that millennials do job-hop more than other generations. Others show that job hopping isn’t anything new.

According to a 2016 study by LinkedIn, millennials are job hopping more than previous generations. People who graduated between 1986 to 1990 (Gen X) held an average of 1.6 jobs in the five years after college graduation. People who graduated between 2006 to 2010 (millennials) averaged 2.85 jobs in the five years after graduation.

The study shows twenty-something adults of today changing jobs more frequently than the twenty-somethings of years past. However, the study only looked at members of LinkedIn, not a wider pool.

According to the Bureau of Labor Statistics, job hopping isn’t anything new. The research shows Baby Boomers did just as much job hopping in their 20s as millennials do now.

Whether or not millennials are doing it more than others, there are advantages to job hopping that make it a positive activity, at least for the job hopper.

Job Hopping Can Lead to Higher Pay

 
Working a job, the possibly for a raise usually comes during the annual review cycle. Raises usually don’t amount to much for more in pay for workers, with a 3% merit increase being common.

When you start out with a low salary, as many millennials do, a small bump in pay won’t help much in accelerating your financial goals. Everyone wants to be making enough to meet their various saving goals while still maintaining a good quality of life.

To truly maximize your earning potential, it usually means changing jobs and negotiating for better pay.

Staying at your current company means your raises are tied to what your base salary was when starting. Changing jobs allows you to research the latest salary averages in your industry and negotiate based on that.

A while back I read a story of a personal finance blogger who was able to more than double her salary and her skill set within six years through job hopping.

Millennials are increasing realizing their worth when it comes to their career and skill sets. Powered with this knowledge, we can channel it into increasing our income at both our full-time jobs as well as side hustle opportunities.

A Chance to Improve Skill Set

 
For a lot of millennials, job hopping is tied to a desire to try out different jobs and learn new skills. Everyone wants to find work they feel stimulated and engaged with. Working within different environments and settings can give millennials a feel for different situations.

Jobs require different responsibilities and skill sets, even when the job title is the same. When you change jobs every few years, you’re forced to learn how to work within different work cultures.

You can’t always get the career advancing opportunities you desire by staying at your current company. Factors such as the size of the company and work culture can be reasons why it won’t be possible to advance as quickly as you desire.

Changing jobs every few years allows you to sharpen your skill set and gives you the best chance at advancing your career.

Relocation Possibility

 
As the internet and social media has expanded, people are becoming interested in seeing more of the world. They want to venture out of the familiar areas and live in different places.

With things like marriage and home ownership being delayed by many millennials, relocating for a job becomes a lot easier than it is for other generations.

If you work in an industry that is heavily concentrated in a certain city or metropolitan area, relocating can mean getting career advancement you otherwise wouldn’t get by staying where you are.

Is Job Hopping a Bad Thing?

 
Gone are the days when you would work at one company for years and years, waiting on others to recognize your achievements. The working world has changed and companies no longer are loyal to their employees.

When you break it down, job hopping isn’t a bad trend. It’s a tool millennials have used to maximize their earning potential and get the career advancement they desire.

The reports are mixed on whether millennials job hop more than other generations, but there are clearly advantages to job hopping.

 
Related:

• How I Landed Two Raises In Less than a Year

• 10 Ways to Make More Money This Year

• Want to Work From Home? Here’s 15 Ideas to Get You Started

• 5 Ways to Leave a Job on Good Terms

 
 
What do you think about job-hopping? Have you seen this work out well for others? Or even yourself?
 
 

Student loan debt has skyrocketed past $1.4 trillion recently.

College graduates continue to graduate with record-breaking student loans.

Many people don’t have any idea how to get their student loans under control. A huge student loan balance can leave people feeling overwhelmed and paralyzed as to what to do.

You often don’t get to live the life you imagined. Student loan debt has forced many to put off marriage, going on vacations, and home ownership.

High cost of living and stagnant wages add to the problem.

If you’re overwhelmed by your student loans, consider taking the following actions to get your student loans more manageable.

Understand Your Loans

 
The first step to making your student loans less overwhelming is to get clear on the amounts, interest rates, minimums, and repayment length.

It doesn’t matter whether you have $20,000 or $100,000 of student loan debt. Laying out all the details for your loans helps you get a clear picture, which also helps you decide on the best course of action moving forward.

You can use our free student loan spreadsheet below to gather and compare all your student loan data.

 
Not sure where to find information on your student loans? We explain how to find all of them in this post.

Consider Consolidating or Refinancing

 
Consolidating or refinancing are similar but differ in how they are offered.

Consolidating your loans doesn’t allow you to save money on interest by getting a lower rate. Your new interest rate is taken from the weighted average of your previous loans and rounded to the nearest one-eighth of one percent.

If you have several federal loans, consolidating can simplify your repayment by combining all of your loans into one so you only have to make one monthly payment. No more having to remember different loan details and payment amounts.

You can consolidate your Federal student loans through the Department of Education via a Direct Consolidation Loan.

Refinancing your student loans through a company like SoFi, could give you a lower interest rate and potentially save you thousands of dollars over the course of repayment.

Consolidating or refinancing your student loans can help you manage your payments better however the decision to do it shouldn’t be taken lightly.

If you have mostly private student loans, refinancing can be a way to get a lower interest rate. However, if you have mostly federal student loans, refinancing means losing out on options like income-based repayment, extended repayment, graduated repayment, and loan forgiveness options.

Understand Your Federal Benefits

 
As mentioned above, if you have mostly federal student loans, there are different repayment plans you could qualify for.

The standard 10-year repayment plan is the most common one. Others include graduated repayment, extended repayment, and income-driven repayment. Other than the standard 10-year repayment plan, income-driven repayment is becoming the most popular because graduated and extended repayment are not eligible plans for loan forgiveness nor do they take into consideration your income.

Income-driven repayment plans are tied to the income you make. If your minimum monthly payment is high in comparison to your income, you could qualify.

Sign Up For Auto-Pay

 
Most lenders have an option to auto-pay your student loans monthly. As an added incentive, they usually give a 0.25% reduction to your interest rate.

This may not seem like much, but every bit counts. Just make sure you have enough in your bank account to cover the auto-pay amount to avoid any overdraft fees.

Track Your Progress

 
Consistency is important in personal finance. Keeping track of your progress allows you to stay motivated and have a better shot of hitting your goals.

You can track your progress through regular updates of your student loan spreadsheet or a free tool like Personal Capital.

Personal Capital is a financial management service that allows you to track your assets, liabilities (this includes your debt), and get a full picture of your finances. Seeing your full amount of student loan debt can potentially cause feelings of resentment and regret. You wonder how to manage your debt and if it was even worth it.

Regardless of whether you have a little or a lot of student loan debt, don’t ignore the situation. Use it as motivation to take action.

Look into different repayment plans, set up a budget, figure out ways to increase your income, and be proactive.

 
 
How do you prevent yourself from getting overwhelmed by student loans? What actions have you taken to make your situation more manageable?
 
 

Whether we’re staring into that tiny phone screen or a laptop, we are often on the hunt for how to get more out of life.

Millennials (and other generations) are all too familiar with the crippling effect social media and the internet can have on us. We’re constantly seeing other people who seem to have it all together.

They work a job they love. They never seem to worry about money.

The journey of building a life you love can be confusing. You may not even know how to get started and what steps to take. Figuring out a way to consistently improve yourself and your situation can be challenging.

If you’re feeling stuck and burdened by your current situation, here are seven things you can do to get more out of life.

1) Go Beyond a Money Metric

 
We all have financial goals we want to reach. Often times, our eyes are so focused on a set number we want to hit, that we forget to consider the reasons why we choose certain money metrics.

You could make a proclamation that you want to pay off $10,000 of debt this year. Putting out a specific number feels good. Although it can lead to becoming too focused on the number rather than the reasons for pursuing it.

In the pursuit of hitting these money metrics, motivation fluctuates and we get the urge to throw in the towel and quit.

Step back from a specific money metric you may have set. Remember why you started in the first place.

Chasing these big, audacious goals is more about setting yourself up with good habits rather than hitting a specific number. Yes, it can be good to pay off debt or save a set amount for an emergency fund.

However, we can learn to appreciate the habits we’re forming in the process. From there, these newly instilled habits can be translated to other areas to help you get more out of life.

Remember, personal finance is all about commitment and consistency. If you ever get burned out from chasing a specific money metric, remember the habits you’re learning in the process.

2) Don’t Wait for Permission

 
We’re set up from an early age to work within structure. We go to school for 12 years, attend college, and then work a full-time job.

Working within a structured environment is all we’ve ever known. It’s routine and normal for us to wait to be noticed for a promotion or raise at work. The only version of success shown to us is within the confines of a job or school environment.

It’s hard to think for ourselves. The natural inclination is to wait for permission.

Waiting for permission won’t help you get the life you want. Instead, it will delay it from happening. Take the first step to creating a life for yourself.

Learn some new skills to get a raise at work, research different potential side hustle ideas, figure out ways to grow your income to achieve your financial goals.

Don’t get in the mindset that you can’t do something. Obstacles and circumstances vary but anyone can improve their situation. It involves getting rid of the notion that someone else is in charge of building up your life.

3) Enhance Your Financial Knowledge

 
Money touches many aspects of our lives. Whether we care to admit it or not, it is a driving force in determining our quality of life.

Master your financial situation so you can get more out of life. Get down and figure out how to make personal finance topics fit your situation. Read stories and strategies others have used to pay off debt, save, spend, and make more money.

Review your finances periodically. How much debt you have, your payoff plan, tracking income and expenses, and understanding your savings account.

Find different ways to approach your financial roadblocks. When David had $100k in student loan debt, he sought out ways to tackle the problem. This included getting organized, finding higher-paying jobs, and pursuing multiple side hustles.

This was the basis for his book Hustle Away Debt, in which he breaks down how he tackled student loan debt via side hustling.

4) Save For Your Guilty Pleasures

 
Cutting expenses can be very beneficial. Although at the end of the day, everyone still has a few guilty pleasures.

Rather than cutting them out and depriving yourself, figure out how much you can afford to splurge on your guilty pleasures every month. Decide on an amount that works with your budget and financial goals.

Create a separate, dedicated online savings account to keep track of your different saving goals. Set up an automatic transfer to go into the account to allocate for any guilty pleasures.

Strategic splurging as I like to think of it. You can get some of the things you like without completely abandoning your financial goals.

5) Try a No-Spend Challenge

 
Saving and allotting for your guilty pleasures is good, but sometimes it’s good to shake things up a bit. No-spend challenges disrupt your regular routine.

They can work in two different ways. You can do a no-spend challenge where you buy nothing but necessities or one where you cut spending in problem areas like eating out or shopping.

No-spend challenges allow you to get more out of life because they force you to get creative with what you already have. You’ll be able to figure out any spending problems there may be in your budget.

6) Define Your Savings Goals

 
A clear and defined end goal is the key to hitting your savings goals. Don’t stop at just a set number you want to hit. Break it down and figure out the steps and habits to achieve it.

Let’s say you want to save a $1,000 starter emergency fund while you pay off debt. Break it down into monthly targets. Think about what habits you can do to get there faster. These could include:

• Saving $200 per month for five months

• Using Ebates for online shopping so you can earn cash back

• Opening up an online savings account

Even if you don’t hit your goal on target, getting specific allows for a greater chance of success and motivation.

7) Make More Money

 
Making money outside of a traditional job is empowering. Not only do you get to make extra income, you also get to test out your entrepreneurial and time management skills.

A side hustle has the ability enhance your skill set and connections. It gives you the ability to reach your financial goals faster and learn more about yourself.

There a common side hustles like babysitting, driving with Uber, or taking surveys. Long tail side hustles like blogging, freelance writing, and digital marketing let you put your creativity into action to make extra income.

You have more control over your side hustle endeavors than you do with a full time job.

There is no set plan for making more money. Focus on starting rather than waiting around for the perfect idea. Find a way to make your first $1 in extra income.

From there, you can grow and revise along the way. Side hustles allow you to get more out of a life than what a traditional full-time job may be able to provide.

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You don’t have make big, sweeping changes in order to get more out of life. It’s important to just start somewhere.

It all starts somewhere. Do things and challenge yourself to get more out of life.

 
 
What are some strategies you’ve used to improve your life? What change had the biggest impact?