We discussed in our blog Money Secrets of Financially Successful People that spending less than you earn is one of the key cornerstones of wealth, but it’s also so important in the grand scheme of saving money. Let’s look deeper into what this really means, with some very surprising calculations that may inspire you to make some simple and painless lifestyle shifts. For most of us, we have more bills than income. But what if you reduced your bills? It’s so easy to get stuck in the routine of working and paying, that we often forget we have the power to make huge changes in our lives. Think you can’t do it? Let’s talk about some often overlooked ways people CAN save money such as looking into this Personal Capital review and others.
With car insurance at around $140, auto maintenance averaging around $30/mo for the year, and gas costs around $160/mo, and a down payment typically being around $2K, that innocent looking $250/mo car payment can becoming a whopping $580/mo being pumped into your transportation fund -- that’s nearly 7K per year for the term of your lease, which is typically 3 years - that’s $21,000 dollars so it's much better to buy a used car, rather than leasing a new one. When you're ready to purchase a car, visit a reputable dealer like Conklin cars and trucks to check out the cars they have for sale, you might even find the car of your dreams! Car shopping can be overwhelming, so make sure you have a few cars in mind before you visit a dealership.
Trust me, not being broke every month is way more beautiful than that hot rod. If you bought a pre-owned car for 5K, at the same car insurance, maintenance, and gas costs, over the course of three years, you’d be saving $6,000, or $2,000 per year. This is why getting a cheaper, more affordable car is a lot better for your bank. You can also get cheaper, more affordable car insurance as well. Just simply check out these lowest automobile insurance rates and you'll easily find the right one for you.
Are you paying a cable bill?
What do you pay for your phone bill?
What are you spending on coffee or tea out?
Alternatively, you can purchase 2 containers of coffee at your local store for let’s say $16, which lasts you a month. And you buy a reusable hot cup for $10 online. In total for the year, that’s $192 in coffee alone, plus the one time $10 fee for the hot cup for a grand total of $202, saving you $91/mo or $1,092/YEAR!
What about nights out?
That’s $70/week. If you bought a nice bottle of wine for $12 at your local Wine Shop, spent $15 on a specialty pizza, had friends over your place instead, and split the cost three ways, you all get a fun night together for $9 per person for $18/week!
You and your buddies can save up to $280/mo just in taking turns hosting hangouts…or $3,360/year.
With these corner-cutting 4 tips ALONE, you’ve got an extra $511 in your pocket monthly. Look at that over the course of a year, and that’s $6,132! Not bad, huh?
The bottom line is…
If a homeowner were to combine all of these tips, you've got an extra $22,932 per YEAR. That's practically a second income!
If a renter were to combine all of these tips, you’ve got a bright shiny new $10,332 in savings. That’s pretty sweet!
Reach out to us if you have any questions, and feel free to post your comments in the section below. Share this article with friends and family to spread the money saving love!
Empire Tax Professionals