15 Best Money Decisions Redditors Have Made
Looking for some financial advice? Reddit can be a great place to start. Many Reddit communities, like r/PersonalFinance and r/Frugal, contain answers to questions you’re probably asking when it comes to managing money. A lot of the answers in these communities talk about big decisions users made that helped solidify their financial situations.
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GOBankingRates searched the top money communities on Reddit to find the decisions that users said made their financial health better. Read on to see if these can help you change your personal finance game.
Learning How To Budget
User AbominableRainbow said learning how to properly make a budget is the best financial decision you can make.
“When I became unemployed the first time, someone showed me how to budget in Excel. That was in my mid 20s. I’m now 35, and every paycheck, I sit down to track expenses and pay things. No longer live paycheck to paycheck but still enjoy budgeting things.”
Read: Grant Cardone: Here’s How To Become Rich If You’re Earning an Average Salary
Being With the Right Person
This might not be the first thing you think of when you consider smart financial decisions, but many Redditors credited their partners with making them more financially savvy, like user magicsquirrelbus.
“I married a winner. She is awesome and very frugal. Throughout my life, I have seen people with spouses that ruined their financial life. Picking a compatible partner with goals that jive with yours is huge for a long term successful marriage.”
Making Saving a Joint Effort
User NoScrubrushes said the best financial decision is to open a savings account with your partner.
“About two years ago, my significant other and I were serious enough to open a joint savings account together. With one joint account, we each deposit a set amount every pay cycle. That money cannot be touched for anything besides the already budgeted necessities like rent, groceries and the electric bill. Because we deposit slightly more than we actually need, in a relatively short time we built up the account and now both have easy access to roughly $2,000 in case of emergency.”
Moving Somewhere More Affordable
Reddit user SmileFirstThenSpeak said that moving in with her mom in a low cost-of-living (COL) area was advantageous for both of them. They could save money and spend more time together.
“Instead of her going to assisted living, we sold both our houses in a high COL area and bought a house together in a low COL area. It has a very nice ‘in-law suite,’ so we each have all the privacy and autonomy we want, and it’s super easy for me to take care of her whenever she needs or wants anything. Saving the outrageous cost of assisted living, while mom gets excellent care and lots of love.”
Learning New Skills
Teaching yourself how to do the services that you’re paying for every month can save you hundreds of dollars. Reddit user Chemical_Actuator learned a bunch of new skills to avoid paying to have them done by someone else.
“I learned how to do my own nails, hair and eyebrows. I haven’t had someone else do them in a few years now. Saved so much money. I learned how to repair my hand-me-down laptop. I got a lot of years out of it.”
Buying Second Hand
Spending money on new items when you can get similar performance from used ones just doesn’t make sense. Reddit user TheTurtlesAlwaysWin is a big believer in this.
“I think this is something that adds up in the long run, but buying used clothing when possible and not trying to keep up with fashion trends. Last time I went shopping with my friend, I was shocked at how much new clothing costs.”
Opening a Roth IRA
Many Reddit users talked about how grateful they are that they opened a Roth IRA to get money tax-free in retirement.
“Opening Roth IRA and maxing out for four years now,” Reddit user mlnpko02 said. “Could be generational wealth in 30 years, especially if I don’t ever need it in retirement.”
Participate in 401(k) Matching Opportunities
User Cmn1296 added that if your employer offers a 401(k) match, take advantage of it, citing their best financial decision as “investing in a Roth IRA brokerage account and matching my employer’s 401(k) contribution limit.”
Not Going Into Debt for College
User HuntThePearlOfDeath said going to school close to home was a smart financial decision.
“Took a full ride scholarship to my hometown university. Sure I didn’t live out the dream of moving away to some fun, exotic college, but at least I didn’t graduate with debts. That got me off on the right foot to start immediately saving after I graduated.”
Quitting Smoking
“First year, I saved about $7,000,” Reddit user Big-Abalone-6392 wrote. “I find that I’m much more frugal with my money now, too, whereas when I was smoking I’d waste it on all sorts of things.”
Asking for a Raise
User kevatronic5000 said that you can’t just expect your employer will give you more money.
“Start asking for a salary increase instead of waiting for the company to give me one. I’ve asked for a salary increase every year or two, and I’ve also told them what I expect. I always go into the discussion with research on current market rates for the job [I’m] doing. I’ve never been refused, and my expected salary has always been met. I like my job; I know I’m getting paid above market rate. I hear lots of people moving jobs just to get better money, [but] sometimes you just need to ask.”
Investing in the Stock Market
If you haven’t invested yet, many Redditors suggest it, like MentalFloss1, who recommended investing in the stock market by “putting more than I thought I could afford into low-fee market index funds, leaving it there, and contributing on every payday.”
Having Multiple Bank Accounts
“Having several bank accounts — checking and savings at different banks,” Reddit user Live_for_flipflops recommended. “Once I started doing this and splitting my paychecks, it got easier to pay bigger bills and keep everything paid on time. I used to take my first whole check and pay rent, so all my other bills had to wait until the second check. Now, [since] I split my money, everything is on time, and I even have some stuff on auto pay.”
Dropping Big Spenders From Your Life
Sometimes, the people you surround yourself with can drive you to make poor financial decisions.
“Avoiding big spenders, both in friendship [and] in relationships. Lifestyles are contagious,” Reddit user AbsoluteBeginner1970 said.
Working at a College
Your work can sometimes open major doors for you.
“Went to work at a university where tuition was free,” Reddit user massgirl1 said. “Got my MBA for free and it increased my salary by 30%.”
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This article originally appeared on GOBankingRates.com: 15 Best Money Decisions Redditors Have Made
