05.10.2021
HOW TO LEARN TO SAVE SOME OF YOUR BASIC EXPENSES
There are three main items on which people tend to spend the most money. If you learn to save some of your basic expenses, in years to come you will enjoy a quiet old age. You can even save enough to retire early, start your own business, make a profitable investment or go on vacation more often.
The cost of housing, transport and food is the "invisible thief" that makes many people live from paycheck to paycheck or fall into debt. Are you familiar with this situation? Of course, we cannot exclude these costs, but we can reduce them to a reasonable level without depriving ourselves of a good standard of living.
Try to spend less in these three main areas and you will be surprised to find out how much more you can save. If you move to a smaller and cheaper apartment, go to work on foot, by bike, scooter or public transport and cook more at home and bring food to work, it will immediately have a positive impact on your wallet.
In order to achieve a "healthy" level of saving, but without becoming stingy and deprived of basic amenities, you need to show a certain amount of creativity. The goal is not to lower your standard of living, for example by buying cheap and low-quality food, but to learn to live more practically and even healthier, but at a lower cost.
Housing
Most people pay too much for their homes. There is one rule to follow when choosing a new home. It should cost up to 25% of your net monthly income. If you live alone, consider whether you will feel comfortable in a smaller home that is closer to your job. If you are married, you can move to a cheaper neighborhood, keeping the large area.
Whether you choose to live in rent or pay for your own apartment, follow this advice so that you do not suffer from financial turmoil. If your income is too low, it may be time to consider retraining, changing jobs, or another source of additional funding.
Even billionaire Warren Buffett lives in a modest house, which makes up only 0.000078% of our wealth. The American investor, businessman and philanthropist is considered the greatest investor in the history of modern financial markets. Buffett himself calls this purchase "the third best investment I've ever made."
Transport
In addition to the home, transportation is a real "bottomless pit" for money. The car is certainly an indispensable convenience, but we do not always need it every day. In many cases, people can get to work by public transport or other more environmentally friendly means, such as a bicycle or electric scooter.
It is important to have a safe car. When choosing a new car, do not be enslaved to a particular brand, but look at all available brands and models that meet your requirements. Do not forget to pay attention to the economy, and if you buy a second-hand - do not need expensive repairs.
Of course, it is best to be able to pay for the desired car immediately. If this is still not possible, you should be able to pay it off in less than three or four years, and the contributions do not seriously affect your budget. And when you get the dream car, use it wisely to save fuel.
Food
A visit to a restaurant can cost as much as a few family dinners at home. Frequent eating out can be as costly as you can afford. The good news is that it can easily be drastically reduced. You don't have to suffer for your social life - just invite your friends home more often.
Even if you don't have time to cook twisted specialties every day, there are countless ideas for easy and quick meals to prepare quickly after work. Use the strategy of restaurants - prepare preforms in the freezer (kneaded minced meat, marinated meat, frozen dough, chopped vegetables), with which you can quickly cook something that usually takes more time.
Try to cook for a few meals and choose dishes that the whole family loves. Some resourceful hosts use the weekend to cook for the coming week, enclosing more hot food in jars. So it lasts longer, and the family has a variety of meals every day.
Even if you follow only some of these tips, you will soon find that with minimal effort you can save an unexpectedly large part of your salary. And use the money saved for a sensible investment that will pay off over time, giving you a bright financial future.
