Achieving financial success is not something that simply happens. Maybe if you win a lottery or something, but for a normal person like you or me, it comes from a series of small steps you take over a long period of time.
With each step, a new habit of smart money is configured. With every habit of smart money, you build towards financial independence.
What kind of habits can you follow to follow this path? Let’s take a look at the smart money habits that you can start today to approach a financially independent future.
1. Avoid being “penny wise but pound foolish”
It’s tempting to try to save a few cents here and there when buying small things. However, this is not where real money is provided. You make an extra effort for something that does not move the needle.
You get maximum performance when you reduce large bills. For example, finding a lower interest rate for your mortgage could save you more than $ 50 a month. Reducing your transport bill by buying a cheaper car or taking public transport can also save big profits.
So, monitor your recurring expenses, such as housing, transport and insurance, and see where there is room for maneuver. It’s a much better use of your time than trying to pinch pennies here and there on smaller purchases.
2. When you want something big, wait
The rush can make you in trouble in most aspects of life. Financing is no different.
It’s normal to see something and want it at that moment. Start as a child in the pay line at the grocery store, and continue until adulthood.
We have an idea in the head of something we want, and it’s hard not to go out and get it back then.
A good example is the desire for a new car. Maybe you’ve had your car for several years. We’ve crossed the 100,000-mile mark. Maintenance may be due, bothering you that you need to replace the timing belt or buy new tires.
So, you have itching.
You start searching online and realize that you can change your current car to something new and more exciting … all for a few hundred dollars a month. Then you become obsessed.
This is where you should retreat.
Your new obsession spoils your judgment. Instead of giving in to the rush, wait.
Set a time frame for you. You can return to the decision after three months. See if the obsession continues.
Can, but often, something funny happens. Often, I forgot it. You often discover that the new car was not a necessity at all.
The momentum faded. And you just saved a lot of money.
3. Live smaller than you can afford
In the end you get this big increase. And you want to celebrate, and why not?
I’ve been waiting for this forever. After all, it was all because of his hard work.
That’s good, take a little pride. However, make it a unique deal and ready.
Don’t indulge in a trap because just because you earn more money, you should spend more.
Often, people get more money and feel like them, giving them the means to buy a bigger house, a bigger car … already know the exercise. resistance.
The fact is that living smaller than you can afford is one of the fastest ways to achieve savings.
But if it’s constantly updated when it starts doing more, it will never move forward. You will simply accumulate more debt along the way and will have the same room to maneuver as before.
4. Practice smart grocery shopping
The food … is one of the biggest portions on any budget. If you’re not careful, it could be one of the largest banks in your portfolio.
But luckily, there are some things you can do to make sure you stay smart with your money when you buy groceries.
Create a grocery budget
Develop a strict weekly grocery budget. When you know how much you can spend on groceries, you can plan your weekly menu around you.
Once you know what you need, you can go shopping and keep a constant number while shopping to make sure you’re on your way.
I tend to do this in my head, rounding each element. However, writing them on the fly probably works best for most people.
Make a list… and never deviate
Don’t go to the supermarket without a list. If you go to the store with a rough idea, you won’t have a real idea of what you need.
You didn’t study well. You don’t know what sales are. As a result, you will make decisions on the go.
These hasty decisions will lead to excessive spending, which will derail the grocery budget.
Eat before going grocery shopping
It is also important to eat before going to the supermarket. Hunger is a powerful force.
If you go shopping on an empty stomach, everything will look good. In particular, you can find a lot of processed and prepared snacks which will look attractive.
After all, you are now hungry and the food is readily available. Then, unconsciously, you can tilt towards these elements.
Unfortunately, these items are not only less healthy, but also more expensive. You pay to rest.
However, when you eat before buying, you will buy with a clear mind. Your hunger will not obscure your judgment, affecting you to make bad decisions like a cartoon demon resting on your shoulder whispering in your ear.
This makes it much easier to comply with your purchase plan.
5. Cancel your gym membership
Now that you’re ready to eat your meal, it’s time to be smart when managing your budget in terms of fitness. And let’s start avoiding the gym. The gym bill, that is.
Gym membership costs about $ 60 per month. That’s $ 720 a year.
However, two out of three gym muscles are not used. This means that two-thirds of people with gym membership literally give up $ 1,000 a year. he’s crazy!
I recommend looking for a replacement. A good alternative is to look for fitness transfer services.
Streaming services allow you to broadcast hundreds of exercises like Insanity and p90x, directly into your home for around $ 10-20 per month. This is $ 40-50 a month lower than the average gym membership.
Of course, then there is a free option. The Internet is full of free training that you can do on your own with minimal or no equipment.
For example, there is Couch to 5K, which I used personally a decade ago to relieve myself from couch potatoes and run the first 5K race. If I could do it, anyone could.
Then there are free resources like reddit which have unlimited information about the exercises. Subreddit Fitness has done all the research for you, completing training tips and detailed training procedures for anyone to use on the wiki.
There are many procedures that do not require equipment. You can join subreddit to be part of the community, making it easier for those looking for camaraderie and encouragement in their fitness goals. It’s all free
It’s baby steps… And baby steps can start now!
I’ve never met anyone who couldn’t be smarter with their money. On the other hand, anyone can be smarter with their money. But remember, it doesn’t happen at once.
Start fighting motives. Get ready for this week and be smart at the store. Reduce your monthly expenses, such as very expensive gym memberships and may not get your money anyway.
The devil is in detail. Details can change your lifestyle and prepare you for an independent financial future.
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