Live Within Your Means. This is a no brainer. If you spend everything you earn at the end of each month, you'll have nothing left to invest.
Remember, wealth is how much you accumulate in asset, not the doodads you accumulate.
Related article: Cash and Debt Management
Create a budget and stick to it. A budget helps you compare your monthly income and expenses, and determining needs versus wants. Be frugal. Buy only what you can afford and need. Don’t dress to impress your enemies.
You don’t need to wear expensive clothes or drive a Mercedes Benz to impress. You should impress others with who you are and your personality.
First and foremost, cut your expenses.
Here are a few ideas on managing your expenses to help you achieve your financial goals:
Take a look at your budget’s top 10 or so monthly expenses, there are almost always at least one or two items that you could do without, that you’ll end up with more cash at the end of each month.
I have a friend who moved her whole family back to her husband’s family for 6 months, saving the rent for their down payment for a bigger house. Go from two cars to one car to get rid of one car payment, or down size to a smaller car. Cancel cable services, or switching to a cheaper phone service providers. By the end of the year, you’ll be at least several thousand dollar richer.
Now is the time to ditch those bad habits of yours.
If you smoke, that will be the number one habit to kick. First- and second-hand smoking cause harm to both the one who smokes, and the people around him/her. Not to mention to raising tax on smoking habits.
Instead of eating out at restaurants with friends, invite your friends over for dinner or potluck.
Stop drinking and buying soda or any sugary beverages and alcohol beverages. These only add to your medical bills in the future. Water is your best friend.
Stop spending money on bottled water either. The plastic bottle contributes to pollution, and erosion of your wallet. Install faucet mount water filter system or use your water filter in your refrigerator and refill your own bottle.
Increase deductibles on your auto, homeowners and other insurance policies, which can help lower premiums
Pay off your mortgage as fast as you can, especially if you’re paying private mortgage insurance. Mortgage insurance protects the mortgage lender, not you or your family.
As soon as you get your mortgage loan down to 80% of your home value, call your mortgage lender and have them remove the mortgage insurance.
Related: Pay Off Your Mortgage in 7 Years
Pay off your bad debts
Employ these strategies to increase your income.
Sell extra stuff you have sitting around in your house. Things that you have no use of anymore. Sell them on Craigslist or have a garage sale.
Rent out your spare room. Millions of home owners worldwide are now renting out rooms or floors of their current homes for short periods of time on sites like airbnb.com and VRBO.
Rent out your car. Sites like uber and turo allow you to rent out the extra seats in your car - or the whole vehicle, if you’re not too faint of heart!
Learn more at How to Make Money with Your (Dream) Car.
Use your skills and time. Got extra time still after selling your stuff? Leverage your earning power during your off-time, evenings and weekends with your professional skills or personal hobbies to bring in some extra cash. If you love doing crafts, you can sell creative items on Etsy.
You can sell fruits from your tree at local farmer’s market. In Hawaii, many houses have fruits trees in the yards. Do you have a special recipe that everyone enjoys? Sell that at local farmer’s markets.
You can also earn extra money with cooking, house cleaning, babysitting or dog walking. The opportunity is limitless. You can list your services on sites like TaskRabbit or Fiverr You can also sign up for Mechanical Turks at Amazon, where you can complete tiny miscellaneous task for a fee.
Starting a second career or a part-time opportunity to earn additional income.
Adjusting your W-2 allowances if you are expecting a tax refund, but consult with your tax advisor before making this change.