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The modern world often associates spending with living. While many of you would agree to the idea that one can only live fully as long as they can spend freely, we tend to disagree. From where we see it, you can live and enjoy your life even with half the amount you currently spend on yourself.
Most people would laugh at the idea of living on half their salary. If you too find it just as ridiculous, we’re glad you’re reading this post. It may seem impossible, but actually, it’s not. You can actually save half your salary and invest it somewhere – grow your wealth and enjoy a comfortable life after retirement.
All it takes is a little bit of smart planning and spending.
• First things first, transfer half of your salary into your savings account as soon as you receive it. The less you have, the less you’ll spend. It all starts with training your spending habits.
• Get rid of the credit cards. These sneaky instruments drain you off your finances like nothing else. Credit transaction may seem convenient, but they’re in fact, only adding to your future expenses – that you don’t have money to pay for.
• Slash down unnecessary expenditure. Sit down and make a list of all the monthly expenses you have. Include your drinking and dining out expenses too. Once you have the complete list, take a prudent approach to exclude all the expenses you can live without. For those you can’t do without, find cheaper alternatives.
• Hunt for the best deals. Whether it’s insurance, cable TV, utilities, mortgage – or anything else that you might be looking for – there has to be a deal that is cheaper and more relevant to your budget than others.
• Reuse or Up-cycle. There is nothing wrong with buying used stuff. Second-hand cars, furniture, and even home décor can look and function just as good for half the price, if you know how to make it work. Think of ways you can reuse existing items in different ways. Shop from the flea market to get a good bargain. You can always up-cycle, re-upholster, or re-paint stuff to give it a fresh new look.
• Change the way you travel. You don’t need to take your car with you everywhere. Try to catch the bus or the subway instead. You can even walk or cycle when the distances are shorter – plus, it’s a great exercise. Imagine all the fuel expense you’d be cutting down on and watch it translate into savings!
• Drinks and coffee in the house. If you grab tea or coffee on your way to work, stop doing that. Instead, brew it at home and save the money you spend on it for something else. Drinking at the bar or pub can be expensive. Host a BYOB gathering at home.
The problem with most people is that they don’t think about saving or building up their wealth for the future. Most people end up living in miserable conditions once they retire, simply because they did not make smart saving and spending choices while they were still earning.
Saving half of your salary may seem like a lot of money – but you don’t necessarily have to do just that. Save as much as you can! A third or quarter of your monthly income could make a difference too. Just start, everything else will follow.
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