When you’re trying to keep your expenses low and you’re looking to avoid an all-in cost of living, you may feel as though you need to make sacrifices in your lifestyle. After all, if you can’t afford a nice apartment or a nicer car, then maybe you shouldn’t get them and should just stick to the bare necessities of life instead. But that isn’t necessarily true. There are several ways in which you can save money without compromising your lifestyle, and they don’t require too much sacrifice at all!
Spend less than you make
It’s important to live within your means and not spend more than you make. Start by making a budget and sticking to it. Learn how much you can afford in monthly expenses, including food, gas, rent/mortgage, etc. Make sure you’re spending less than that amount each month so that any excess funds go into savings or investments.
Always making sure that you spend less than you make is one of the best ways to keep your finances healthy and on track. Keep reading for other helpful tips on keeping your expenses low!
Automate everything you can
Automate as many things as possible. Our lives can be so busy and it’s not always easy to take the time for things, especially if you’re paying someone else to do them. But what might seem like a luxury now, could end up saving you in the long run. Here are some ideas:
– Get a smart thermostat that automatically adjusts the temperature throughout the day or night according to your preferences and will send you notifications when there’s an outage or problem with your system.
– Set up automatic bill pay with reminders set up on your phone so you don’t have to worry about remembering and staying on top of payments.
– If you use streaming services such as Netflix or Spotify, make sure they’re auto-renewed (this is sometimes found under Account Settings). These subscriptions can sometimes be canceled from the website but just keep in mind that if they were auto-renewed then you’ll lose access after canceling.
Automating everything doesn’t have to be expensive either. You can automate your expenses by signing up for IFTTT which offers free tips for anything and everything! All you need to do is sign up through their site, connect accounts from all of your favorite online accounts including Facebook, Twitter, Instagram, Pinterest, Tumblr, Youtube, etc., and choose if this then that tips that suit your needs.
IFTTT is an excellent tool that allows you to build automated tasks in less than a minute. It saves me money because I’m not wasting my data by going through social media sites every few minutes when I get a notification or checking the weather constantly because I want to know if it’s going to rain tomorrow so my dress doesn’t get ruined!
Save 10% of your income
Saving 10% of your income is the most important thing you can do. Don’t use this as an excuse to never go out with friends, or take a vacation, but it is wise not to spend more than you make. If you earn $10,000 per year and want to put away $1,000 a year then try and get by on $8,000 instead. The more you have in savings the easier it will be for you in an emergency. The average person doesn’t need more than six months’ worth of expenses saved up so that they can afford living expenses for six months if they lose their job or are unable to work for some reason.
Saving at least 10% of your monthly or annual income will provide security and peace of mind. By saving at least 10% of your income, you are able to build enough savings to pay all living expenses for six months should anything happen such as being fired from your job or being incapacitated. You might also think about how much it would cost to maintain a basic standard of living during unemployment; calculate how much you would need each month just to cover food, shelter, transportation, and other necessary expenditures (for example). Then divide this number by 12: this equals how much you need to save every month, which comes to about 1/10th of your total yearly earnings. The sooner you start saving 10%, the less likely you are to be forced into poverty later in life due to a lack of financial planning and poor budgeting habits early on.
Saving even a small amount today could potentially yield huge results tomorrow! When considering what portion of your paycheck needs to be set aside for future emergencies, keep in mind any pre-existing debts like student loans or credit card balances.
It is always important to compromise smartly, in order to make sure that you get the most for what you have. In general, it’s better to buy things that are well-made and designed to last over time. You may spend more upfront, but in the long run, you will be glad that you invested a little bit more upfront. When it comes to clothes, avoid trendy fashions at all costs – instead, look for classic items that will never go out of style.