My blog focuses on Financial Literacy/Money. Many people dream of financial freedom. It’s an elusive goal for many, and for others it’s a myth. It can be done though with discipline and proper planning. The following guest post is entitled, The Financial Freedom Formula: How to Live Large on Less.
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Squeezing more money out of your income and your budget can seem like a daunting task, especially when costs keep increasing. Staying within your means isn’t fun, and having a little fun now and again helps you feel better about life. Sure, you can use tactics like spending your tax refund as a bonus, but that’s something that only happens once a year.
Careful budgeting and financial planning enable you to set aside money and build wealth, but it can also help you have fun and enjoy life with regularity. It’s possible to spend less money on activities and material goods, yet feel like you’re living the good life. Here’s a look at how.
Take Advantage of Discounts
Manufacturers across most industries offer coupons and other incentives to get you to buy their products. There is no shame in taking them up on this offer, especially because manufacturers view this as the cost of doing business. Buying something at a reduced price in no way diminishes its value, but it does leave more money in your pocket.
When it comes to consumables, IE, the items you use regularly, look for coupons that have a long expiration date or offer a larger-than-usual discount. This way, you can build up a small supply of your needs and buy less frequently. Also, seek out multiple coupons to buy more than one product at a time, even if you have to make separate purchases. The savings add up quickly, resulting in more money being left in your budget that you can put to use elsewhere.
Find Low-Cost or Free Activities
You don’t have to spend a lot of money to find something that you enjoy doing, and sometimes you don’t have to spend anything at all. Cultural attractions frequently offer free days, municipalities host free events throughout the year, and meet-ups rarely cost anything to attend. It’s a great way to get out of the house, meet your neighbors, and enjoy your time exploring or experiencing something different.
The best way to find events is to keep an eye out for fliers at local establishments and search the internet. The internet can be especially fruitful because there are websites devoted to event calendars for municipalities across the country. A quick search for your town or a nearby city can generate more results than you expect, and an amazing variety of event themes and venues that won’t cost you an arm and a leg to attend.
Minimize Credit Card Spending
People use their credit cards for a variety of reasons, and they’re not always wise ones. The habit of pulling out the credit card to make a purchase is a hard one to break, but it’s necessary if you want to be able to live within your means. Carrying debt is costly, and sometimes, that cost is greater than the joy of owning something that you might not need.
Make it a point to use your credit cards as little as possible and only during times when you’re short on cash. Make repayment of the card the first thing you do after you get your next paycheck so you don’t carry a balance. If you have to carry a balance, keep it as low as you can and pay it off as soon as possible. The goal is to minimize the amount of interest you pay on your debt and not have it balloon out of control.
Create a Financial Plan
Creating a financial plan is the act of creating a set of short and long-term goals for your money. It begins with putting together a budget to find money that you can set aside for the future. Once you know how much you can set aside, you work out your allocations to reach your goals. For example, you want to build your retirement funds, and you want to put in the maximum annual contribution of $7,000, or about $84 a month. You would need to find $84 every month to put towards your retirement goal.
The same goes for all of your other financial goals. You need to find money to fund them, and you have to do it within the constraints of your income. However, it’s worth putting up with the restrictions because your efforts eventually pay off and enable you to realize your goals. Taking action now means you can take a dream vacation without putting a strain on your finances because you worked hard to set aside the money.
Buy Second-Hand Items When Possible
Buying a used item, also known as second-hand, will save you a lot of money while delivering value. That goes for everything from clothes to cars and electronics to accessories. Many items are capable of having a long life after their first owner is done with them, and you get to enjoy your purchase minus the original asking price.
One of the caveats of buying something used is to make sure it’s in good condition, shows little in the way of wear, and functions like new. The price should reflect that the item has depreciated in value but is still usable. If you’re not sure about the condition or shape of the item, get it inspected if possible, or walk away if you’re not comfortable. There will always be something else you can buy at a reasonable cost.
Eliminate Subscription Services
Subscription services tend to eat at your income without you realizing it. These and similar services have earned the name of “financial vampires” because of how subtle they are at sucking away your money. Many people find it easier to pay the monthly fee instead of going through the effort of ending the subscription.
The fact is, subscriptions add up over time, no matter how many you have. It’s not a problem if you’re watching the services you subscribe to and are enjoying the entertainment, but it’s a problem if you’re not. When you realize you’re not watching something that you subscribe to, you need to put in the effort to cancel the subscription and keep the money for yourself.
Being Frugal With Your Money Can Be Fun
People who find ways to spend less on the needs of life are often considered cheap and stingy. The fact is, you don’t have to spend a lot of money to feel like you’re living it up. A lot of the good things in life are free, as the saying goes, and you don’t have to spend a lot to gain access to those good things.
Think outside the box when it comes to entertainment, eating out, and buying goods. You can make a challenge out of finding novel ways to save money and turn the act into a game on its own. You might find that life is more interesting, and you’ll save more money without giving up on your pleasures.
Ashley Nielsen
Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a freelance writer who loves to share knowledge about general business, marketing, lifestyle, wellness, and financial tips. During her free time, she enjoys being outside, staying active, reading a book, or diving deep into her favorite music.
