- Spend less money.
- Make more money.
Today, I discuss a few ways to spend less money.
- Think priorities. Think reward. Align your money habits to promote your values. What do you really want in the next 5, 10, or 15 years?
- Stop paying rent. Rent is a big money waster. Can you cut or decrease your rent payments by moving into a less expensive apartment or taking on roommates? Can you move back in with your parents? If you can afford to buy a home, now may be a great time.
- Cut your food bills by 50%. Bring bag lunches to work and cut back on restaurant meals. When I was a kid, we only ate out on special occasions like birthdays. Buy unbranded food in bulk.
- Cut up your credit cards. Get rid of debt by paying cash or by paying your credit card bills in full each month.
- Reliable and affordable car. If you are thinking of buying a more expensive car, stop! One of the worst things you can do is own a Mercedes or BMW. Cars are a debt and don’t make you money. Expensive cars massage the ego. Use debt to buy appreciating assets. Own a dependable car but not an expensive one.
- Eliminate costly vices. How much are you spending each month or cigarettes, beer, drinks at restaurants, or illegal drugs?
- Buy clothes at thrift shops or wait for sales. Never buy retail.
If you have other suggestions, please include them so we can learn from your experiences. I would love to hear your favorite money-saving tips.