It’s important that you develop a budget using your net income as it reflects your take-home pay after taxes and dedications. A common mistake people make is developing a budget off of their gross income. It’s a mistake because you’re budgeting money you never possessed. Remember your potential savings is the difference between your net income and your expenses. Here are the best five tips to save your hard-earned money:
1. Stay in a cheap area where expenses are low
The number one rule to save money is to cut out your expenses. In order to do this, it is mandatory that you move to the state or country with the lowest cost of living. It does not matter whether you like it or not or stay with your family, pack up everything you own and move away immediately.
2. Cut your cable connection
Remember the purpose of life, i.e., Money. You need to optimize every hour of the day as each minute wasted reduces earning power. You can opt for disconnecting your TV connection because it is estimated in a survey that the expenses on tv cable connection contribute higher. Never doubt the formula: Work, eat, work, sleep, work, repeat.
3. Never eat out
There really is no point in enjoying a meal with fellow citizens. In a perfect world, everyone would stay inside of their homes and cook perfectly nutritious food using every spare ingredient they can find. And since you won’t have cable anymore, there’s plenty of time to prepare it!
4. Cut down your coffee
Starbucks is the biggest threat to your wallet. Anyone who thinks it is smart to pay 10 times what it costs to brew your own at home should rethink being a millionaire and instead light their cash on fire.
5. Stop using credit cards
Never use credit cards, take out a loan, lose your wallet, go on a vacation, give to charity, play video games, or allow a natural disaster to occur.
Yes, it’s true that all of this does actually save us money! But remember there are many more factors in life than just finances, mainly our happiness. More power to you if you do rock any of these above, but please make sure you’re doing them for the right reasons as you are the one who has to live them. There’s no point in having a million dollars if you are secluded and miserable.