It’s Never Too Late To Make These 15+ Smart Money Moves

Ever since a kid I’ve been enamored with the idea of building wealth.  I can remember earning a few dollars here and there for chores and excitedly marching to the bank to deposit the money into my statement savings account.

Watching my balance go up and up really made me feel good. I never really lost that excitement for earning and saving money. I did, however, allow my finances to become derailed a few times after reaching adulthood.

Fortunately, I was able to turn it around and get back on track in my late 30s proving that nothing is forever and it’s never too late to make smart money moves!  

It’s Not Too Late To Make Smart Money Moves

I’m guessing you had a few financial ups and downs in your life too. Don’t stress. It’s completely normal to not do everything right all of the time – especially when it comes to money. With so many mixed messages out there to save your money and also buy the latest gadgets and newest cars, it’s hard to stay motivated and on task.

The good news is that you’re not even remotely alone on this sometimes difficult wealth-building journey. So, let’s dig into 15+ smart money moves you can make starting today even if you’re not in your 20s (or 30s or 40s) anymore.

15+ Smart Money Moves

1. Know Your Income And Expenses

I know it sounds crazy for me to say this, but it really is essential to getting your money on track. You likely have a very good idea of how much money you’re bringing in each month but you might be way off base when it comes to how much money is going out each month.

In order to get a detailed account, you’ll need to look at bank statements, credit card statements, check registers (if you use one), and anything else you can think of that will show your monthly deposits and deductions.

Don’t forget to include bonuses, child support, alimony, and forgotten or unused subscriptions and memberships.

2. Cancel Subscriptions And Memberships

And while you’re at it, cancel those subscriptions and memberships that you’re not using.

For longer than I’d like to admit, my husband and I both had gym memberships that were eating into our monthly budget. Granted, our memberships were not pricey, but they were there and, over time, costing us. Why did we keep them for so long? Well, turns out, gyms (at least the two we belonged to) made it very difficult to cancel a membership. We had to meet with a manager in person.

When you’re not using a gym membership, it’s a hassle to go there in person. And the first few times we went there to cancel, guess what, a manager wasn’t available. We didn’t give up. Eventually, we showed up when a manager was on-site to help us ditch this cost.

You might have to do the same, but in the end, it’ll be worth the annoyance.

3. Make A Plan To Eliminate Debt

There are two main methods to use: The Debt Avalanche and the Debt Snowball. Each method focuses on eliminating one debt at a time. The debt you choose to pay off first will depend on the method.

If you choose the Debt Avalanche, you’ll be focusing your efforts on the debt with the highest interest rate regardless of the balance. On the other hand, if you decide to employ the Debt Snowball, you’ll be eliminating the debt with the smallest balance regardless of the interest rate.

Sure, eliminating the debt with the highest interest rate means you’ll pay the least amount of money toward your debt in the long run. However, paying off the debt with the lowest balance first might mean you get a quick win and a motivational boost. It sure did for us. We used the Debt Snowball to stay motivated despite paying a little bit extra in the end.

4. Life Insurance

Sadly, we never know what is going to happen in our lives. It’s better to have this base covered than to float through life hoping nothing bad ever happens. Hey, hopefully, that is the case. But, just in case, making sure you have a life insurance policy that will replace the income your family depends on is worth its weight in gold. This one really is a no-brainer and should be at the top of your smart money moves list.

Related:

• 30+ Simple Strategies To Boost Your Savings
• 7 Tips for Living On an Inconsistent Income
• How We Save Money On Groceries Without Being Coupon Warriors
• 5 Things Every Frugal Person Should Spend Money On

5. Boost Your Emergency Fund

There is nothing like having the peace of mind that comes from having a fully-funded emergency fund. Obviously, that’s easier said than done and fully-funded can mean anything from three months of living expenses to two years worth.

Fully-funded is really dependent on your current income streams and monthly expenses. For example, if you have a two-income family but you can live on one income, you can likely aim for the lower end of the emergency fund spectrum. If, however, your family depends on one income from a single industry, it would be wise to consider a heftier rainy day fund.

All that being said, any emergency fund is better than no emergency fund. So if you’re just starting to get your money on track, it’s important to quickly save up a small cushion to cover unexpected expenses that will inevitably happen – like a car repair.

Some financial experts, like Dave Ramsey, suggest saving $1,000 as quickly as possible, even if it means selling stuff. After that, eliminating small debts will also give your bottom line a boost.

6. Start Saving (Or Increase Your Savings) For Retirement

Saving for retirement is oftentimes something that gets pushed to the back burner because there are so many competing financial obligations that need our attention here and now. However, saving for retirement is more important than most things many people spend their money on.

Consider this. You don’t need to save for your children’s education. And, you shouldn’t be unless you have your retirement savings on track. Your children can always borrow money or gain a reasonably-priced education via a community college, trade school, or online university, but you will not be able to borrow money for retirement unless you borrow it from your children. And I’m guessing you don’t want to do that.

Take it from me and Mr. MMM, we both paid for our college degrees and didn’t come out with crushing debt. It can be done. As difficult as it can be sometimes, this is a case where you should absolutely put your own needs before the needs of your children.

So if you fall into the camp of not saving for retirement or not saving enough for retirement, make a move today to change that. If you have access to an employer-sponsored 401(k) or 403(b), consider contributing the max amount to get the employer match and increase your contributions whenever you get a raise or promotion.  Also, consider opening an IRA or Roth IRA with a trusted brokerage firm.

Little by little, as you eliminate debt and free up more money, you’ll be able to boost your retirement contributions to ensure a better future.

7. Track Your Net Worth

Out of this entire list, this is one of the most important things you can do for motivation, at least it was for us. Until we started tracking our net worth, we really had no idea how we were doing relative to our age and life stage.

What I love most about tracking net worth is that you can be hyper-focused on debt elimination and still see your net worth GO UP! So even if you feel like you’re not building wealth – you are! And the increase in net worth with every dollar of debt eliminated proves it.

If you’re interested, we prefer to use the free, secure money management tool, Personal Capital (that’s my affiliate link), to stay on budget and track our net worth to stay motivated.

8. Go Back To School

Okay, you can stop laughing because I’m actually serious. Well, I’m kind of serious. I only advocate going back to school if you’re sure it will increase your future earnings without a heavy debt load or costing you a ton of quality time with your family.

Sometimes employers will pay for advanced degrees or certifications. This is 100% worth looking into. I was able to get my Master’s degree for FREE through my current employer. It wasn’t something I needed for my position, but, in this fluid economy, I couldn’t pass up pursuing an advanced degree for zero dollars.

It’s also not always required to get a degree to make more money. It’s possible that gaining a certification or completing an online course could net you a pay raise just the same. If your employer doesn’t offer certificates or courses, do some research on your own. There are a ton of FREE online courses out there offered through respected colleges and universities that require only a computer and your time.

Discuss the completion of a relevant certificate or course in your annual review and you just might be recognized as a go-getter and put on the fast track to a promotion or raise.

9. Don’t Be Normal

Ha! I better you didn’t anticipate seeing this one on the list of smart money moves. You have to know that being normal means being in debt and spending all of the money that comes in each month.

In order to build wealth, you need to eschew everything that normal people do with their money. Why? Because normal people don’t build wealth. Normal people don’t save their money and instead spend all of it on expensive houses, impressive cars, high-tech gadgets, and on and on and on.

Now, I’m not saying you have to deny yourself all of life’s luxuries. I certainly don’t. You just need to pick and choose which ones are important to you and only spend your hard-earned cash on those things.

10. Make Sure You Have Adequate Health Insurance

Yeah, I know this is boring but it’s oh so important. I don’t care how many salads you eat or how many marathons you run, you can’t always predict genetics and you must make sure you’re covered.

I’m fortunate to have excellent health insurance through my employer but that might not be the case if you work for yourself or have more of an entrepreneurial career.

Before you start socking away cash in the market or buying a multi-unit rental asset, make sure you have insurance coverage that you feel comfortable with given your age, health history, and lifestyle.

11. Know Your Credit Score

Credit scores are a funny thing. Some money people say that your credit score doesn’t really matter. And, on some level, that’s true as long as you’re not ever planning on financing a vehicle or taking out a mortgage.

If, however, you happen to be like most people in this world, you will inevitably need to finance a car or apply for a mortgage to buy a home. It’s great to say you should pay cash for these major life purchases, but that certainly isn’t always realistic advice.

To ensure you qualify for the absolute lowest interest rate, you need to make sure your credit score is as high as possible. This can be achieved by always paying your bills on time and making sure there are no errors on your credit report.

To check your report, follow this link to Experian (this is also my affiliate link), one of the three major credit reporting agencies.

Related:

• Rightsize Your House If You Want To Increase Your Wealth
• Extreme Frugality Fatigue Is All It’s Cracked Up To Be
• The Best Money Tips For Generation X To Avoid A Retirement Crisis
• How We Avoided Massive College Debt

12. Reduce Monthly Expenses

This one goes without saying but still deserves a spot on the list. If you’re struggling to find money to fund your emergency fund or to save for retirement, it’s worth reducing some of your recurring expenses like your cell phone, cable, groceries, and entertainment.

You’ll be amazed at how much money you might be able to free up by optimizing the above categories.

Cell phone bills can be a major line item for any family, but thinking outside of the box could save you a ton each month. Instead of staying on your expensive plan via AT&T, Spring, or Verizon, consider switching to a low-cost alternative that runs via the same towers.

With no hassle plans and excellent coverage, Boom Mobile and Ting both offer cell phone service at a fraction of the cost of the major players without requiring a commitment. Don’t like it, switch back.

Still paying hundreds a month for cable? Consider cutting the cord and piecing together the things you like to watch via Hulu, Netflix, or YouTube TV. The savings can be considerable and the commitment is not. If you’re not feeling it, I’m sure your cable company will welcome you back with open arms and likely a discount bundle package to boot!

If your monthly grocery costs got you down, try creating a meal plan, making a list, and only shopping when you’re not hungry. Trust me, the combination of these three things can make a world of difference when you get to the cash register with your cart.

If entertainment expenses are killing your budget, start prioritizing the things you do and how often you do them. Going out for dinner and drinks with friends is a fantastic way to spend an evening every now and then. Doing it every night is a budget buster that can quickly lead to credit card debt and a non-existent savings account.

Analyze your entertainment just as you would any other budget line item and you’ll be able to stop the leaks by substituting with alternatives.

13. Optimize Your Savings

If you have a sizable emergency fund in your back pocket make sure it’s earning as much money as possible. You could be earning little to no interest if you have it socked away in a checking account at your local bank.

Instead, consider some online alternatives. At the time of this writing, a quick internet search yielded several online banks paying more than 2% APY with no minimum balance requirements.

A 2% APY doesn’t sound like much, but it’s certainly better than nothing. Why not go for it?

14. Buy The Latte

That’s not a typo. I get so tired of hearing that buying lattes will significantly hinder our ability to build wealth. It’s simply not true. Unless, of course, you’re buying like two lattes a day 365 days a year and your finances are in a disastrous free fall. If that’s not you, buy the latte and enjoy.

Listen, I’m all about saving money and being frugal (I still super glue my shoes together) but I draw the line when it comes to sacrificing every little thing that brings joy into my daily life.

Instead of extreme frugality, I’ve opted for selective frugality. And, let me tell you, I couldn’t be happier.

So, yes, I’m going to order my latte. And, yes, I’ll have whipped cream on that!

15. Move To A Less Expensive House Or Area

Although I can attest from experience how wonderful it is to live in a small home with low taxes and utility costs, I listed this one last since, in my opinion, it’s extremely difficult to execute.

Unless you live in a notoriously high cost of living area or your current home is exorbitantly large and expensive, given the cost of real estate transaction fees, you’ll likely be better off to focus on the first 14 moves and reserve this as a last resort.

Bonus: Start A Side Hustle Or Second Job

Ahh, side hustles and second jobs. The difference really is in the eye of the beholder. When it comes to side hustles and second jobs I say proceed with cautious optimism.

Oftentimes, side hustles can end up consuming a ton of extra time without an equivalent payoff. Instead, it’s worth weighing all of your options, including making more money at your current day job (think: promotion or raise).

And there you have it. 15+ smart money moves you can make even if you’re a little late to the financial game. There is no better time than right now to start making smart money moves to build your wealth.