The richest people are the ones who live frugally. The problem with salary increments and credit limit increases are that as they increase, so does your cost of living. Even though you have increased income, your savings haven’t improved drastically.
The issue at hand is a simple one – you aren’t living frugally.
Cut the Cable
Netflix, YouTube, and the large availability of tablets and laptops, has made online watching easy. On the other hand, cable viewership has dropped. If you don’t watch cable TV, get rid of it.
Follow the 30 Day Rule
Canadians spend $3,720 on impulse buying. The most basic way to prevent impulse buying is to follow the 30 day rule. It’s quite simple, if you want something, wait for a month to buy it. If you still want it after that, go ahead and purchase it.
Make a Shopping List
Supermarkets are arranged to push you into buying things you may not need. How do you not fall into the trap? You make a shopping list of what you need at home and stick to the list.
Eat out Less
Eating out is expensive. Whatever you eat out can always be made at home, for a much more affordable rate. Limit your lunch and dine outs to weekends. On weekdays, pack lunch from home.
Buying games are expensive. A new game can cost as much $40-$80. However, if you wait for season sales, like Black Friday, Winter Sale and Summer Sale, you can avail of some great discounts.
Kick the Habit
What is that one unhealthy habit that costs you a lot to maintain? Smoking? Drinking? Fast food? Identify the habit that is draining your finances, which is unhealthy, which you need to get rid off – and do so! You live a healthier life and save too.
Reduce your Home Utility Bill
Faucet leaks and leaving the light on is a waste and increases your utility bill. Identify the leaks and get them fixed. If you can’t make it a habit to switch off the light, install a home automation system to help you do so.
Low Interest Rates
The lower your interest rates, the lesser your debt amount. Getting your credit agency to lower the interest is a great idea. You should have a good credit score to convince them to do so.
Buy Things that Last
Quality over quantity. It’s better to buy a pair of shoes, clothes, a fridge and a heater that lasts you for more than 10 years, than buying many of them within a 10 year period. Over time the cost of quality makes the higher price worth it.
Do as much as you can to get your hands on coupons, whether it’s from the newspaper or discount marketplaces like Groupon. You’ll find many great deals that will reduce your household expenses.
The ultimate aim is to change your lifestyle. Don’t let your salary increment lead to a more expensive lifestyle. The richest are the ones who live frugally.