If you don't know where your next dollar is coming from, you probably don't know where your previous dollar went either. If you're the sort of person who appreciates the finer things in life, having extra cash in the bank may be quite handy, but in order to do so, you'll need to be thrifty with your money. Here are 10 frugal living techniques that can make you wealthy.
Number 10. Eat at home instead of eating out.
It's more specific to food. It may not seem like much when you spend four dollars on a big mac for lunch every day, but it adds up to quite a bit at the end of the month. The same goes for coffee and other foods and drinks that appear appealing and cheap while you're out and about. Cutting back on spending money on these foods will definitely put you at an advantage in terms of increasing your wealth, but it comes at a cost.
Use your abilities, number nine.
To generate additional money, we've heard time and time again that the key to riches or getting wealthy is to have several streams of income rather than just one. If your 9 to 5 job doesn't pay enough for you to live comfortably, you may supplement your monthly income by employing any abilities you have. Some individuals assume they lack remarkable abilities for which someone would be willing to pay them, yet this is not the case. It's not difficult to find a recipe online and bake a batch of cupcakes, and there are plenty of individuals with a sweet tooth who would be interested in purchasing a tasty cupcake from you after you announce that you're selling them. If you can write, you may use internet sites like Upwork and Fiverr to sell your skills.
However, this isn't limited to writing. These websites provide opportunities for those who are skilled in digital art marketing, spreadsheet creation, video editing, voiceover production, and a variety of other skills. You can charge more and earn a livelihood if you're skilled enough at what you do, but for now, just think of it as an alternative. Make use of your abilities to get some additional money. You will not be sorry.
Keeping track of spending is number eight.
It's often difficult to keep track of everything that requires money. When individuals look into their bank accounts, they often wonder where part of their money goes. That is why it is critical to keep track of your costs. You may use a spreadsheet or a word document to achieve this, whatever is most convenient for you. Examining what you spend your money on in detail may give you a clear picture of what you might need to trim from your budget or perhaps give you a heads up if anything suspicious is going on with your money. If you track your money and discover that you have less in your account than you should, you may want to investigate. Hackers and fraudsters do exist, so be cautious. We also spend a lot of money on subscriptions that we're probably not interested in anymore. If you keep track of your spending and see that you're paying for a program that you're no longer interested in, you may cancel your subscription and save the money.
Number seven: Take your time before making a purchase.
Many individuals have the habit of purchasing things they really want as soon as they are paid, since that is the only time they have the money, but this isn't always a good idea because you'll be slashing your savings as soon as the money comes in. Waiting another month or two after seeing something you really want is likely to be difficult, but it may be preferable than spending your money as soon as it hits your account. If you wait a few months and use the other tactics to get wealthier during that time, when you return to the same shop to buy the same thing after those two months are over, you won't feel as much financial pressure. Also, waiting a few days before purchasing anything might be a good idea since many goods will decrease in price over time.
Number six: be cautious with your personal possessions.
Repairing faulty devices, such as autos and household equipment, costs a lot of money. While it's not always our fault when our possessions are destroyed, we may strive to be more cautious with them to prevent those expenditures. Many of us carry our phones and computers with us everywhere we go, and they sometimes slip from our grip. To prevent having to take them to a repairman, try clutching them a little closer. It's a small point to consider, but it may make a big difference when it comes to saving. If you've appreciated this video so far, please like it and leave a comment on what you think is the best strategy to save money.
Number five, always have an emergency fund.
If you need a large sum of money urgently, having emergency savings can relieve the strain on your regular savings. While your general savings can be used for daily expenses and possibly luxurious purchases when you get to that point, your emergency savings will only be used when you absolutely need to spend a lot on something. This extra cash can also keep you from going into debt if you need to take out a loan to pay for something urgent. In real life, you might not see the point of having a large sum of untouched cash in a separate account when you could be using it to pay bills and other expenses, but in the unlikely event of an emergency, it will indeed come in handy and take the strain off of your regular savings, so you won't have to worry about how you'll afford everyday items after paying.
Number four, save a little whenever you can.
Depending on the type of job you have, this may seem like a difficult thing to do because our day-to-day lives require so much spending. From groceries to transportation, there always seems to be something to pay for. While this is true to an extent, it doesn't mean that we can't try to save whatever we can. Simply saving a dollar a day can do wonders in the long run if we're consistent, even if it feels like our money is required everywhere we turn. When was the last time you received change after buying groceries or food? It probably occurs more often than you think. While this change may be beneficial for other costs, it won't hurt to save a few dollars for later. It may seem like a lot at the time, but you'll thank yourself later when you need it for those quarters and dollars.
Don't purchase the most recent product, number three.
Advertisers and the media tend to convince us that we need to have the newest gadgets as soon as they're released. However, while it may seem like you're falling behind if you don't buy the newest iPhone, AirPods, or other device, you may thank yourself in the long run for not spending money on such items, especially if the ones you already own are perfectly functional.
Number two, sell anything you no longer require.
This one may seem unusual since most people don't consider themselves salespeople or feel they have anything worth selling, but you'd be amazed at how many goods you possess that are in decent shape but that you don't use anymore. If you're the sort of person who goes through stages, this is your go-to wealth-building technique. Have you ever gone through a baking period where you bought certain baking utensils that you no longer used and then sold them on Craigslist or Facebook? Have you gone through a youtuber phase that you're no longer interested in? Sell your microphone and camera as well. If you have an old smartphone that you're not using, do the same thing. It doesn't have to be anything big; ] as long as it's in reasonable condition, someone will be willing to buy it. You just have to use the right words when selling. The number of people lining up to buy your stuff may surprise you; there are more people looking for things that you don't need than you think.
Number one, do not spend if you do not have to.
As previously mentioned, it often seems as if we have expenses lined up at every turn as we move through life. While this is somewhat true, it's probably not as true as you think because there are some things that we spend our money on that we don't actually need, and if we make the conscious decision to forego certain things for a few months or even a year, the amount of money that would be accumulated in our bank accounts would be well worth it. Yes, it's nice to treat yourself with an occasional outing and by buying certain snacks to munch on when you're hungry, but if you cut out these expenses for a period of time, you'd actually be saving quite a bit of money. It may sound like too much to handle now, but know that it won't last forever. Try going a few months without extra small expenses such as seeing a movie or buying an outfit you saw in a store window.