Dax Shepard offers financial advice to legions of fans in his own version of “Don’t Worry About the Little Things.”
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Worth $40 million, according to Celebrity Net Worth, Shepherd is clearly doing something right. But even as his acting, podcasts, and new plant-based baby brand Hello Bello, which he launched with his wife Kristen Bell, have brought him wealth, he’s still focused on the best ways to save money. I’m here.
“I’m obsessed with money. While Bell is more carefree, Sheppard says he wants to build a nest egg for when two Hollywood stars quit their jobs.
One of his big beliefs is putting spending in perspective by identifying which cuts will have a greater impact on the balance of the budget. “First and foremost, people need to be really aware of where they’re spending their money. It’s easy to get overly focused on things that aren’t actually moving the needle,” he shared with Money. , said it’s something he’s seen Bell do often.
“She raves about grocery store items and I point out what she spends on other expensive items she doesn’t regularly think about. I can’t think
MarketWatch notes that not only is this advice practical (there’s a lot of research showing that it’s easier and more cost-effective to cut large pieces than small ones), but one expert It also eliminates what we call “decision fatigue.”
Akeiva Ellis, a certified financial planner, says, “Making a good one-time choice is much more effective than making it consistently.
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As Shepard advised, here are some time-tested tricks to save your budget.
Track every dollar that comes and goesWhile you may not need to “check your checkbook balance” anymore, you can use similar methods to see where your money is going. Do the little things count as anything compared to the big purchases? Clarity gives you insight into how much you’re spending (maybe more than you think).
Save on big items instead of splurge. Before you buy, make sure it’s really necessary and a must-have. The America Saves organization has a great plan with SMART goals to make big purchases that are specific, measurable, achievable, relevant, and timely.
Add to cart but do not checkout. This is one tactic Kristen Bell uses when shopping online, Sheppard told Money. Additionally, having items in your cart can be less of a buy than an impulse buy.
Be aware of automatic payments and recurring charges. Autopay is great for convenience and avoiding late fees, but beyond the essentials, sometimes you want to double check who is actually withdrawing money from your account and how much. This is essential for streaming services and subscriptions that you use infrequently.
In addition to your monthly budget, put together an annual budget. A 12-month plan focuses on the big picture, assessing what big purchases are coming and which can be avoided.
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This article originally appeared on GOBankingRates.com: Dax Shepard: Stop Doing “Crazy” With Small Spending — 5 Proven Budgeting Tricks To Grow Your Wealth