How Life Changes Can Save You Money

You can save money by earning more and having more to save. Or you can spend less. Hand-in-hand with each of these is making lifestyle changes to improve your savings rate. However, not all lifestyle changes are applicable or practical for everyone. 

What follows are some life changes to help you spend wisely on things that genuinely matter and avoid lifestyle inflation.

First you have to know where you are spending. Break down your expenses by fixed and variable costs. Doing this helps to view everything as either in your control or out of it.

– Take care of your fixed      expense – Invest consistently      where you feel      comfortable (the      amount depends on      your budget) – Save for retirement – Save into your      emergency fund for a      rainy day (at least 6      months' worth)

First Things First

Get into the mindset that you control your spending, and whenever you do spend money you should do everything possible to get the most bang for your buck. 

Next, Develop a Savings Mindset

Buy Only What You Need 

Keep your recreational expenses to a minimum and see first where your money is going and what's the most costly part of your day-to-day.

Lifestyle inflation is one of the worst thing you can do to your expenses. Ignore your neighbors and instead focus on your own needs, expenses, and financial situation.

Avoid Lifestyle Inflation

For Fun

When you plan an evening out on the town or go out to eat, look for and attend happy hours, and look for discount events so that you don't have to pay full price for those drinks.

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