The most common spending problem is living a life that’s too lavish compared to your income. Here are some ways to eliminate those monthly bills, latte breathe.
Sorry I had to include that little Dave Ramsey bit, but seriously if you want to increase that retirement fund then here are the steps:
- GET RID OF ALL TRIVIAL & MEANINGLESS SPENDING -
Start out small. Those $4 Latte/Mocha Latte/Non Whip Low Fat Quad Espressos? Poof be gone. They probably won’t save you from your budgeting problems but they’re certainly a step towards the right direction. You’ll be saving at least $20 a week, that’s at least $1,000 dollars a year.
That’s $1,000 dollars you could have saved in your IRA account, allowing it to appreciate with a conservative compound interest of 6% but no, you decided to expand your waistline with all those empty calories and allowed your assets to depreciate. Kudos to you
2. CUT OUT ALL LARGER EXPENSES THAT DON’T BRING YOU JOY
This one is slightly more painful because technically, one would hope if you’re spending large amounts of money on anything, it sure as hell better bring you some level of joy. This is where you have to train yourself into living a fulfilling life without the need of swiping those plastic cards left and right.
Trade in that luxury car for something a lot cheaper. Or at the very least, buy a Tesla, make a swanky Youtube video that will allow you to make that money back just by the Ad Revenues alone, but seriously just go with the former.
3. Refinance Your Mortgage
Seriously dude, do I have to explain this one? Rates are significantly lower now since the illness surfaced into our daily lives. You could be saving thousands of dollars as your reading this article on zeh can.
4. Find A Way To Cut Your Taxes (Legally)
This means taking advantage of all opportunities that allow you to apply deductions. If you’re self- employed that should be relatively easy- from expenses for work- related items to a home office-
On the investment side, look into tax harvesting. You can save money by selling and then writing off investments that have lost money.
You can use those losses to offset any gains from the year, allowing you to fork over less money to the big man.
5. Oh, AND PAY OFF ALL DEBTS
This should be your top priority. Comprende? No seriously, if you’re trying to save money but you’re carrying a large sum of debt, start with eliminating it all as soon as you can. Just add up how much you’re spending servicing your debt each month, and you’ll quickly see. Once you’re free from paying interest on debt, that money can easily be put into savings, if you’re into watching your money depreciate while inflation is going on. Personally, I like to put my money where I can see it grow, and that’s in investments.
But hey, if these tips don’t appeal to you, I suggest you find your own alternatives, latte breathe.
