Good advice on how to prepare, especially if you are close to, or have, retired early.
Excellent article showing the costs and benefits of that form of insurance.
Guest Post: Spending less doesn’t mean living less: How?
Today’s post is contributed by Amy Nickson, a passionate writer on finance. Amy is a professional blogger whom has started her own blog and also works as a contributor for the Oak View Law Group. Please share your opinions by commenting below.
Spending less doesn’t mean living less: How?
If you are living beyond your means, then you should be wary about your poor financial future. Having a lot of financial obligations make you frustrated and restless.
Getting your finances in order is not easy, especially if you owe huge debts.
However, spending less money is one of the sure shot ways to make a positive impact on your finances. But, a lot of people often believe that spending less means depriving themselves. But it is not true. It is sad that people don’t know that living a fulfilling life while spending less is possible.
Living on less: What does it mean?
People often think that living on less means living in misery. They believe that once they adopt a frugal lifestyle, it will force them to live a poor life.
But in reality, living a frugal life means, you are able to distinguish between your wants and needs. Being a frugal person, you can live a more meaningful life. Of course, you can dream of a high-end watch, a car, and some latest gadgets, but all these come after paying the monthly bills on time, paying off debt, and deposit a definite amount into the savings account. Frugal persons are even able to make investments to grow their money over time. Frugal habits also make financial life peaceful and secured.
On the other hand, cheap skate persons deprive themselves or others just for the sake of saving some dollars here and there. They have only one goal in their life – saving money at any cost. They eat at a low-quality restaurant just because the price is low. They show their obsession over the price. They believe, the cheaper price, the greater benefit.
But being a frugal minded person, you are actually saving money by buying fewer but quality products.
Frugality helps you learn how to cut down expenses that are unnecessary. By doing so, you can save quite a significant amount that you can put into a savings account or can use purposefully.
Here are some ways you can start living a frugal lifestyle.
1. Avoid frequent restaurant visits
One of the best ways to save money is to avoid eating out every day. It is true that eating out can be a lot of fun and sometimes it’s difficult to carry home cooked food to work every day. But, eating at a restaurant every time you feel hungry can cause a huge hole in your pocket. These expenses may not appear too big individually, but can be huge if taken altogether. You should try to eat at home and pack your lunch when going out to work. This will help you save a lot of money that you can put towards other expenses.
- Consider thrift stores
You must consider a thrift store for purchasing your necessities without spending a lot. By doing so, you don’t have to compromise on the quality of the products. The added benefit is, you are saving some bucks. Also, consider shopping in bulk for grocery and vegetables. You can easily store perishable items that you won’t use right away in the refrigerator and stock up the non-perishable items when they’re on sale.
- Keep one car in good state instead of keeping multiple bad quality cars
Keeping multiple cars that are in a bad state can cost you dearly. You will need to pay thousands of bucks to repair the cars, if required. On the other hand, if you claim insurance for repairing the damaged car, the cost of insurance coverage can increase on policy renewal.
Therefore, it is wise to keep one car in good state, which can serve you better, and for which you don’t have to spend much.
- Make spending changes wisely
You may get tempted to purchase goods from the best manufacturers or goods that have a high brand value. By doing so, you are wasting money on something that you could have purchased for a much lower price. Thus, it is recommended to compare price before purchasing an item. You can also wait for a sale to buy the item on discount.
- Keep a piggy bank
Create a coin bank to dump the changes collected from the gas station or a grocery store. See how much you have collected over the course of a year. You can also save the money you received as gifts on birthdays, holidays and sometimes unexpected gains like the tax refund (you haven’t calculated), lottery, etc.
- Contribute money into a retirement account
You should set aside a certain amount (at least 20% of your monthly income) every month into a retirement fund. Try not to spend your hard-earned money in impulse buying. It’s possible for you to secure your retirement, but it takes some serious commitment and time.
- Consider free entertainment
Remember, your family needs your time, not your money. Instead of buying expensive gifts, or planning luxurious trips, entertain your family through public resources. Instead of buying costly story books, visit the library for story hours with your kids. You can rent movies to spend a good time with your spouse. Buying CDs or story books from a public library can help you save a lot of money. Go for fishing, gardening, and cycling, to spend happy hours with your family.
- Build an emergency fund
Put the extra money into a separate savings account so that you can easily build an emergency fund that can be utilized during an emergency. If you can make sure that you have built an emergency fund, you don’t have to take resort to loans and become liable to repay them in the future.
- Use cash for everything
Instead of using credit cards for buying things, you should use cash. By doing so, you can avoid buying things that you can’t afford with cash. Thus, you will be able to avoid huge credit card bills to pay off every month.
- Go for DIY revolution
The DIY revolution has helped a lot of people to live on less. It allows you to stop buying many items as you can make them on your own. Thus, you can save a considerable amount of money. Stop taking out a loan to meet the expenses. You can easily make your own gifts and decor items to save enough money in the long run.
Sometimes, it becomes difficult for you to resist the temptation of purchasing a particular thing. To avoid such a purchase, you should wait for a few days before buying that particular thing. After a few days, if you still desire to purchase the item, buy it. Many a times, chances are, you will lose the desire to buy the item. By following these simple frugal tricks, you will be able to live a more fulfilling life on less without depriving yourself. Living a meaningful life will help you to get a better financial prospect. So, think about it right now!
Very good post on when to take social security at Ms. Liz Money Matters.
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