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Look around, you may find people telling
you their hard earned income is not enough to cover their monthly
spending. You may have heard some of your colleagues telling you they
couldn't get their mortgage approved due to having a low credit score.
You may have seen some of your friends' parents need to extend their
work life due to not having enough savings.
You may conclude that money is not enough
for these people. To certain extend, you are right. But have you heard
of people who earn a five-figure income, but yet having a budget deficit; while
others who earn $5,000 a month manage to save 20% of it regularly? What
has gone wrong? Is it a monetary matter? I prefer to believe it is due
to the different lifestyles they live in.
Monetary problems can be solved if one
can live a moderate lifestyle. There are ways to cut down on your
monthly living expenses. Below are some of the methods:
Identify your cash outflows. Record your
everyday spending, be it a major item like gas, utilities, phone bills
or a petty item like coffee, snack, parking fees etc. By record every
single outflow transaction, you will be surprised at the end of a month
how it could end up with that much!
Eliminate or reduce some of the habitual
spending which is unnecessary. You may have to cut down on number of
times you see movies from weekly basis to selectively. Instead of
eating out, cook your own food. Invite your friends to your home,
instead of going to pub and cafe regularly.
Save on gasoline. Always make sure
your vehicle condition is at its best. The tires have got to be
properly inflated. Buy the lowest possible octane gas which suits your
vehicle. Use public transport if the destination you intend to go is
accessible.
Save on utilities: Electric During
winter, lower your thermostat to approximately 65
degrees. Wear your sweater, so you do not have to increase the
thermostat. During summer, switch on your fan to promote air
circulation if you are using an air conditioner. This is to reduce
power consumption of the air conditioner. Switch off your computer and appliances when not in use.
Use energy saving
fluorescent lamps to save costs.
Save on utilities: Water You can save
on water by taking a shower instead of taking a bath. Average water
consumption for taking a shower is 10-20 gallons while taking a bath is
at average 30-50 gallons. Avoid
running faucet, especially when you are brushing your teeth. Do not
wash your car by using water directly from the tap. Use water
containers instead. Repair leaky toilet and faucets to avoid drips.
These are parts of the areas where you
can improve to help reducing your living expenses. There are more
tips
on how to reduce your living expenses further.
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