INSURANCE . RETIREMENT . INVESTMENTS
We sometimes find it difficult to survive on our income, but do we need to? Most of us find ourselves spending most of our net income or spending more than we earn. The issue begins with us not monitoring our spending. How many of us keep tracking of our spending daily or even monthly?
If you track your spending monthly you will probably be in shock, as to how much you spend unnecessarily without realising. Just think about the things you could have done with the money you wasted over the years. There goes my plan of retiring in my thirties! A budget planner is a good first step to help you work out where your money is going, and whether your income covers your expenses. Learning how to live on half your income requires a lot of willpower, but it’s not impossible.
Getting closer to living life at half price is easier with the following steps:
Create a budget and stick with it:
The most important factor in creating a budget and sticking to it is to be REALISTIC. Regardless of how /much money you make, budgeting is the only way to get control of your financial life. Using a budgeting tool helps a great deal.
Be realistic with what you can do:
Depending on your individual situation, this can range from minor changes like eating out less, grocery shopping elsewhere at a low-cost supermarket, prioritizing saving and investing, moving to cheaper housing or not buying a car or upgrading as often.
Although there are pros and cons to automating bill payments, it does offer many benefits. Setting up automated payment for bills, credit cards, loans and insurance, as much as possible, helps reduce late fees and interests on late payments and builds credit rating. And… here is the winner, automate most of the balance after you have paid your non-discretionary expenses to go to your savings, you’ll be surprised at how much you can save.
Evaluate Wants vs Needs:
Avoid impulse buying/spending. Walk away or return after you evaluate if you really need that item. Ask yourself, “Is this item something that I can survive without?” E.g. new shoes, cell phones, new car or even a larger house? The answer in most cases is a resounding YES!
In this age of plastics many of us are trapped by the dependency on our credit card. Psychology Today, Utpal Dholakia, Ph.D. in his article “Does it matter whether you pay with cash or a credit card” suggests that there are many downsides to using credit cards. A good way to manage your money is to set aside cash for routine expenses such as eating out, miscellaneous purchases, and when you have spent what was set aside that’s it. No more spending!
Do it yourself:
Learning to do things such as cooking, minor repairs, laundry, cleaning, etc. may seem tedious but can save you the money in both the short and long-term. Invest in Do-It-Yourself books and videos to teach you these valuable life skills and reap the material rewards of having them.
Click here for a free consultation from Guardian Asset Management: http://trinidad.myguardiangroup.com/guardian-asset-management/gam-meeting-form
We hope these tips from Guardian Group help you to save money and Live Life for Half The Price!