If you have financial goals, such as paying off your debt or saving for retirement, it may feel daunting to think about how you will achieve those goals. Fortunately, you don’t have to start working 80 hours a week to have more money to allocate where you want it. However, you will have to make some adjustments to your lifestyle. When most people think about living more frugally, they assume that they can’t do anything and their lives will be boring, but this doesn’t have to be the case. You can use your money to save, grow your investments, or pay off your debts instead of needlessly spending it, and still be happy.
Before you head to the store and buy that item you need brand new, look for an opportunity to buy it used to save on expenses. Instead of heading to IKEA to replace a broken chair, check out Goodwill first. If your laptop breaks and needs to be replaced, try asking your friends and family if they have an old one they would sell you for less, or look on Craigslist for used laptops. There are many opportunities to save money simply by not buying new.
Dine Out Less Often
You may not even realize how much money you are losing on eating at restaurants. The average American spends $2,000 or more on dining out every year! That’s 2k that could be going to an investment account instead. If you’re trying to save more money, start by eating out less. You can save a lot by cooking at home most of the time—not to mention, it’s a lot healthier for you! When you cook at home, you are able to feed you and your family multiple times for the same amount as one meal at a restaurant. Make a point to eat dinner at home and pack your lunch for work and you will be surprised how much you save.
Curb Impulse Purchases
One of the biggest money sucks that people don’t notice is impulse purchases. Online shopping makes these easier than ever; all you have to do is click a button and whatever you want is on its way to your door. Checking this habit can save you hundreds of dollars a year. Try adopting the “30-day rule.” Instead of buying something the moment you want it, add it to a list with the date of when you added it. Then, wait 30 days. If it is still important to you then, you can buy it, but the majority of the time, you will be better able to resist the temptation.
Downsize Your House or Car
The two biggest expenses you likely have are your house and your car, but do you need to spend as much as you are? If you have two cars for your household, you may be able to get away with selling one. In addition, you may be able to afford a larger home, but do you really need it? Living in a smaller and less expensive house can save you thousands of dollars. Take a good hard look on how much you really need to be paying for housing.
At Advanced Wealth Advisors, we are happy to be the chosen financial advisors in Naples. Contact us today to get started!