Feb. 27 is officially No-Brainer Day.
I know what you're thinking: "Wow, the perfect holiday for me!" I said exactly the same thing.
Let's start with the definition of "no-brainer." It's doing something that is simple, easy, obvious or totally logical. So don't do the activities that require in any mental work.
How does that apply to your finances? I thought you'd never ask.
Here are a few financial no-brainers in honor of No-Brainer Day:
1. Spend less than you earn. Yes, this is a no-brainer. Unfortunately, many people don't practice it. Start reducing expenses by category. Look at each to see if you can reduce or eliminate costs.
2. Pay off credit card debt. Another obvious no-brainer. Pay off your credit cards, especially the high-interest-rate cards. If you can, transfer your balances over to zero-interest offers. Just be careful if you don't get it paid off before the offer expires. You don't want a rate that's 15 to 20 percent!
3. Save 10 percent or more. This is an easy rule of thumb and a complete no-brainer. Save 10 percent or more of everything you earn. Proceed to Step 4 for your no-brainer way to do it.
4. Automate your savings. I wrote about the no-brainer way to do this in a previous post. Turn on automatic transfers from your checking account to your savings or brokerage account or directly deduct them from your paycheck.
5. Get all the match in your 401(k). This is a no-brainer. Why on Earth would you turn down free money? You'd have to have no brain to miss out on this.
6. Don't buy anything at full price. I don't often mention frugality in my articles, but never pay full price for anything. The vast majority of items have some type of sale at some point. If not, just ask for one! You might get it.
Remember, on Feb. 27, don't strain your brain. Do the simple financial stuff that doesn't require too much mental heavy lifting.
If you liked my post, subscribe here. It's a no-brainer too!
Top 8 Benefits of Financial Education
Learn How to Budget (01 of08)
Open Image ModalBudgeting and tracking your expenses will give you a firm grasp on how much money is coming in and where it’s going out. This can help you cut wasteful spending and free up more of your income. (credit:Getty Images)
Become a Smart Saver to Build Your Savings (02 of08)
Open Image ModalOver 75 percent of Americans don’t have enough in savings to cover their bills for six months, and 25 percent have no savings at all. Becoming a smart saver will help you create a strong savings plan to be ready for an emergency or rainy day.Source: Federal Reserve, US Census Bureau, Internal Revenue Service (credit:Getty Images)
Manage Your 401(k)/Defined Contribution Plan(03 of08)
Open Image ModalMost of us have 401(k) retirement or similar defined contribution plans, but don’t quite understand how to properly take advantage of all they can offer. By becoming financially savvy, you will be able to take control of your 401(k)/defined contribution plan and maximize your benefits. (credit:Getty Images)
Avoid the Pitfalls of Debt(04 of08)
Open Image ModalToday there are more ways to get into debt than ever before. Many of us start straight out of school with student loans, credit card debt and more. Financial education programs can teach you how to spot debt pitfalls and ways to get out from under any amount of debt. (credit:Getty Images)
Take Control of Your Retirement Security(05 of08)
Open Image ModalOver 40 percent of Americans are not saving for retirement, but it’s not too late. You can figure out the best way to save for retirement and create a plan to reach your goal. A good rule of thumb is to set aside 10 percent of your wages for retirement.Source: Federal Reserve, US Census Bureau, Internal Revenue Service (credit:Getty Images)
Build Peace of Mind (06 of08)
Open Image ModalHow would you feel if you didn’t have to worry about money issues or retirement? Financial security alleviates one of the most stressful issues in our lives and helps build confidence for the future. (credit:Getty Images)
Learn the Benefits of Long-Term Investing(07 of08)
Open Image ModalThe recipe for success is investing in solid companies and holding on to them for the long haul. Top investor Warren Buffet tells investors how taking a long-term view can benefit your portfolio with Coca-Cola: “If you had invested $40 in Coca-Cola stock in 1919 it would be worth over $10 million today.” So don’t try to play the market and run the risk of buying high and selling low. Make thoughtful choices and stay calm through short-term market upturns and downturns. (credit:Getty Images)
You Can Teach Your Children(08 of08)
Open Image ModalOne of the most important things you can teach your children is how to handle their finances wisely. Start them off on the right foot and make them smart savers! (credit:Getty Images)