Essential Living

Let me share you a tip on how to save more money, easy.  Stop spending money on NON-ESSENTIAL things.  Not a hard concept is it?  This is especially true for items that are BAD for you (i.e. Smoking!).  This is what it comes down to: You make a certain amount a month.  You have to spend a certain amount a month to survive.  Everything else is saveable money.  Don't question the simplicity of that concept.

SAVED = EARNED - (ESSENTIAL + NON-ESSENTIAL)

You have only some control over the EARNED and ESSENTIAL SPENDING categories.  In your current situation, you make a certain amount, and you can only get so cheap on housing and food to survive.  What you have 100% control over is the NON-ESSENTIAL SPENDING category.  Of course, it's difficult to keep an absolute zero on non-essentials since it makes living enjoyable.  Note that the more you spend to make life more enjoyable now, you delay reaching your financial goals.  Accept the fact that you must live within your means, and your mean is set by what you EARN.  Accept the fact that you cannot live your life like a millionaire if you're working a low wage job.  That recipe just leads to disaster down the road.  Be logical.  What you can do is continue to work hard, improve your situation by learning a skill or getting an education for a job that pays higher.  Meanwhile, you must save your hard earned money to open yourself to opportunities to let your money work for you.  Avoid getting distracted by non-essential spending.  It's not easy.  Discipline yourself to be content with less. 

For a couple ideas, here are some areas where I cut out the non-essential items:

1) Junk Food - Do you really need junk food? You are spending money on food that are bad for you.  I've cut out the chips and soda from my grocery shopping.  My roommate goes through 3 party size bags of chips a week.  He makes up the bad by working out, so it's not too bad physically for him.  However, he is missing out financially.  I'm ahead gaining about $40 a month from not spending money on chips. 

2) Rent a room - Do you need a whole apartment to yourself?  If not, consider living with a friend.  I currently live with a friend from college in a town-home he bought.  I save money since it's cheaper than normal rent, and he's getting help paying his mortgage.  Both people win.  You're trading cost for privacy, but at the same time, I'm gaining additional friendship time.  I am saving a few hundred $$$ here.

3) Smartphone - Do you need to have the internet at every waking money?  I work 8-9 hours a day in an office with a computer with internet, and I'm usually at home the rest of the time, again, with a computer with internet.  The only time I don't have internet is when I'm driving, and shopping at the grocery store.  I'm pretty much already connected 90% of the time! Definitely saving myself $30 a month compared with my "connected" friends.


Be conscious about your spending.  I'm saving hundreds extra each month just from a few smart decisions.  Ask yourself if it's essential or not before making the purchase.  Hopefully it will help you find ways to cut spending and increase spending.  I'll throw in more ideas to trim the cost in due time.  Until then, go at it!