If you need help with basic budgeting / saving money, this is your post!
For the past 3 years, I have been obsessed with financial independence! Please note, I am not a financial planner, and I’m coming from a “no-dependents” mindset. Regardless, here are some tips on how you can live below your means:
- Put yourself on a “college budget” — always stay in a scarcity mindset and spend below your means. Remember when you were in college or in your early 20’s and broke? Pretend you are still that broke and spend that way. Your budget should have a buffer that goes right into savings. I, personally, have an unrealistically low goal of how much I am allowed spend each month — I go over-budget much of the time! But I have lofty goals! (If not for beer and makeup I would be rich!)
- You don’t “need” to buy that expensive piece of art or pottery as a gift to yourself. A gift to yourself could be a walk in the woods! I splurge on a few useful things — good running shoes, for instance, and vacations.
- Live in a “beater” house and drive a “beater” car. Live somewhere safe, and drive a safe car. But don’t be so concerned about “keeping up” appearances. For every extra dollar you spend keeping up with the neighbors, you are throwing away another chunk of your retirement.
- Learn how to travel hack. You could spend $20,000 per person to go on a Disney cruise, or you could create a memorable copycat vacation for $1,500 a person or even cheaper. There is no limit to what you can spend or save on vacations, and spending more does not necessarily equate to better memories.
- Consider a “prepaid” cell phone plan.
- Scrap all of the “monthly subscriptions” that you pay for. You probably aren’t using them enough to make them worth your money. I am still paying for Amazon Prime (I will probably scrap it next year), and we get Netflix (but we use it.) I have very few other monthly subscriptions.
- Learn how to “go out” cheaply. First Friday artwalk events, grand opening events, anniversary events, etc, are often free. If you want to go out to dinner, stick with dives and diners. I have no love for fancy restaurants, so I do well in this category.
- If a grocery store offers either beer for purchase to drink while you shop or free personal shoppers, it’s too flashy of a store. Don’t shop there!
- Don’t go out to lunch. Just. Don’t!
Have a good, cheap weekend!