There are simple money-saving exercise that everyone should do at least once in their lives. It is ultimately one of the best ways to save money because it is not about pinching pennies but about discovering what you really want and getting it. It is so simple you may hesitate to try it. Just try it. Here it is:
List everything that you have spent money on, are currently spending money on, or might spend money on.
Don’t just read this and think of a few things. Take the time actually to write it all down. Review your bank statements if you have to, to remember and include everything.
Now go through the list and carefully consider each item. Take the most time on the big items – past, present, and future possibilities. If your timeshare on the beach is worth half what you paid, costs $1,000 per year in expenses, and is rarely used, you need to learn from that – not to punish yourself, but to have a richer life.
If you think honestly about the number of times you will use that Recreational Vehicle and the cost, it may be $250 for each day of use. That’s okay if that is worth it to you, but maybe you really would enjoy $100 hotels more. You can maybe rent an RV for less overall cost, thus freeing up money for other important goals.
You see, saving money is not about sacrifice. We all are aware of the scrooges in life that pinch their pennies, bank the savings, and then do nothing with it. The point should be to save money in one area of life so you can use it in ways that make your whole life richer.
Suppose you notice you’re spending $20 or so per month on subscriptions to magazines you do not read or more on insurance for a motorcycle you seldom ride? Cancel the subscriptions or sell the motorcycle, and what have you lost? Is it a big deal? What will that $20 plus a month get you instead? Some examples of money-saving exercises are as follow.
– Invest it for ten years at 10%, and use the $4,100 towards a second honeymoon.
– Use it to pay for a day off work once a year, to spend with the kids or your parents.
– Invest it to have an extra $50 plus per month during your retirement years.
– Buy several good books a year to learn something new or escape into a good fantasy world. Mine books would be on investing and thrillers by such authors as Brad Thor or Steve Berry. Any books on investing that I think might add value to my way of investing or for my financial planning practice.
– Make movie night with takeout dinner for the family once a month.
– Give $100 or more per year to a worthy cause. Here I normally give to St. Jude Children’s Hospital as they are amazing in what they do and offer sick children’s families.
-For a list of the best bank rates for a checking or savings account, visit https://www.bankrate.com/banking/checking-vs-savings-accounts/.
-For ideas on high-interest savings, you can visit a previous post at https://kgmeyerpc.com/high-interest-savings-account-2/.
$20 per month can do a lot if used wisely. Imagine what you could do if you stopped wasting $200 per month. That is why it is important to discover what you really want – and what you do not want. This is one of the most intelligent ways to approach these money-saving exercises.
For more information and assistance, feel free to reach out to me or any qualified fee-only Registered Financial Consultant.
