When I was 23 and I asked my boss for a raise, he said something that I will never forget . . . “We are all living up to our means, if you start making more, you will just start spending more”.
While I realize that this is total BULLCRAP and his way of convincing me a raise wouldn’t be best (HA!), I’ve also realized that these words have helped me stay out of the “Maximum Spending” habits, and away from stretching my means too thins. When you make more you don’t HAVE to spend more.
If you are living to your max means, you have to be a better manager of your expenses. It’s just that simple.
While most of this simply takes discipline, it is important to be aware of the ways you can really control your expenses. This is different for everyone…
In a perfect world, we would all just like to make more money (Insert link to a “Ways to make money” article), but when you’ve tapped those options, here are some things to be hyper-aware for saving money on the day to day:
1) CHALLENGE the fixed monthly payments that you pay month after month, without even thinking about them.
Whether this is your internet bill, your homeowners insurance, or your healthcare – always be looking for what the competition has to offer. Some of these changes come with hassle, but only you will know what the savings is worth.
2) EVALUATE your monthly expenses that you might think are necessary….but if you lost your job tomorrow, what could you drop? Your pool guy? Your Cable? Your Lawn company?
3) REVIEW your rates. Whether this is credit card debt or mortgage interest, be aware of the market and offers out there. While it might cost a few bucks to do a balance transfer to an interest free credit card, what will your savings be? Definitely worth exploring!
4) Lastly, the hardest . . . SELF-CONTROL. Do you really need that Starbucks every morning? If you even cut back to just half as often, what could you save?
Take a good hard look at your spending habits. Many banks offer spending trackers as part of your on-line banking. Don’t be afraid to look at the good, the bad and the ugly. Spending categories like restaurants, coffee and fast-food might be an area that surprise you!
The average American spend almost $250 per month (Per person!) eating out. What could you do with an extra $250 in your pocket?