Now that you see where you’re money is going, you might be wanting to make some changes to ensure you’re able to make your life align with the way you envision it.
I highly recommend that you look at the biggest expenses in your life, not the little expenses that don’t add up to much.
There are generally three main expenses that take the majority of our money.
- Housing
- Cars
- Food
Housing
I know housing is an expensive one in most places. Yet there are ways to bring down your cost. You do have to be flexible though. I personally had a roommate until very recently. I’m not opposed to getting another one if I end up having to spend a lot on housing renovations/repair or something. Here are some ideas to lower your cost:
- Live with family
- Get a roommate
- Rent a room from someone
- If you already have your own place, rent out a room or more than one
- Move to a less expensive place or city
- Negotiate with your landlord to bring down your rent when your lease is close to ending
I’ve had many people comment on my having a roommate at my age, but honestly it’s not only helped me tremendously financially, but also interpersonally. Perhaps you don’t need that, but I really needed to learn how to deal with people. I’m very thankful to my roommates, particularly the one I had for four years. Living alone is great, but I will forever be grateful to myself for making the decision to get a roommate.
Cars
I know cars are very important for some people…yet, they are a large expense and when you purchase a new one, it immediately depreciates. Before you buy a new one do your research and see if it makes sense for your budget. Can you find a used one that is a better deal? I know having a reliable car is important. I personally did buy a new car seven years ago, and I still have it. I purchased a very economical and affordable Toyota. Honestly, it wasn’t the one I wanted. I wanted a sporty one that would be fun to drive around! That one was twice as much and I didn’t think it was worth it in the end. Since I’m not a car person though, I did want a new car that wouldn’t give me any issues for some time. Seven years later, I’m very happy with the car I purchased. I’ve yet to have issues and the only thing I’ve done is replace the tires and get oil changes. Hmm…should I have replaced the brakes already?? I’ll look into that! Anyway, get something that you can afford and that is reliable so you can keep it for years to come! Also keep in mind that the car determines how expensive your insurance is! If your city has great public transportation, perhaps you don’t even need a car!
Food
This one was the one I personally had to REALLY work on. If you don’t know how to cook, learn how to make a few dishes. It can even be fun! Plus, making something yourself gives you a sense of pride that I never realized I’d get until I learned. I even started seeing cooking as an act of self-love. Buying nutritious food and making delicious dishes made me feel cared for. Like when my mom used to cook for me. Upon hearing that I cook daily, most of my single co-workers inevitably said: I don’t have time to cook! I call B.S. on that. I chop my veggies as soon as I bring them home, wrap them in a paper towel, and put them in glass containers in the fridge. When I want to cook, all the prep work is already done and the actual cooking part takes maybe 20 minutes. Even less if all I do is toss everything in the air fryer. You can find delicious and simple recipes for things you like that are fast! You just have to look for them.
As a bonus, I will mention that insurance also tends to be expensive so you should definitely get multiple quotes before buying and do the same when your insurance goes up. This year I saved almost $500 by bundling my insurance. It was worth the hour of work to get the quotes!
After tracking your spending, I suggest you look at your most expensive categories and see if there’s anything that you can save on.
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