I am about to tell you the one trick to make extra money that is the oldest and most successful way to live comfortable.
Saving the money you already have gives you more spending money when you need it.
You’re probably thinking “DUH”, right? But, hear me out first.
Spending money on necessities is one thing. Spending money on things you believe are necessities is another thing.
Alarming Spending Habits
Both the New York Times and Time Magazine found a strange habit of spending in the retail industry. What both publications found about living through hard economic times will shock you.
The ability for people getting on track for a responsible goal and then reverting the behavior is astonishing.
Here’s what those publishers found:
Money spent on non necessary items goes up when people struggle to manage their own money. The same is true during tough economic times.
How often have you saved only to immediately spend it on something lavish? How often have you questioned your motive to save because of this?
There are hundreds of dollars you’re missing out on by spending money on indulgences. It’s not the necessities that get you in a bind. There is a tact we have when we’re forced to figure out how to manage basic needs in life.
If we then introduce an indulgence, it opens up a floodgate of bad behaviors. It will also make those behaviors challenging to stop. Overcoming this is not as straightforward as it seems.
You don’t want to force yourself to abstain from pleasure. That only increases the need. …
Figure Out What You’re Wasting Money On
Your first realization is in what we’ve just mentioned. You can’t set a goal to save money by avoiding indulgences without knowing the nature of your indulgences. And we’re not talking about buying lattes either. This urge is much greater than that.
This is about cheesecake sells that rise 22 percent in a down economy. This occurs in times when money is most important.
So wine sells increasing by 6 percent in down times are evident of a greater issue. It occurs when staple items, the everyday things we need, decline in consumption. In other words, someone is making the decision to buy an extra movie ticket over the bath soap they’ll need to stay clean this week.
If you aren’t clear about this, trying to cut back on the indulgences to save money won’t work. You won’t have enough motivation. You won’t stop the problem at the root of its cause.
The problem is that people are oblivious to the behavior. They then can’t stop what they can’t understand. Today, you have a silver lining. You’re going to start cutting back. Not on those things you need. So buy as much of those as you want.
You’re going to save a lot monthly by protecting yourself from the nature of indulging. Make extra money out of the money you already have.
You Can Make Extra Money Now
Saving $5,000 over the next five years, for example, earns you $25,000. But let’s make this easier on you. You’re just starting to understand your indulgent behavior. We wouldn’t want you to jump the gun.
So $4,000 saved over five years is $20,000. This means that you only put away an extra $84 a week. This is 84 dollars you’re wasting on unplanned purchases, unscheduled meeting with friends. …etc.
The list goes on.
The Extra Money You Can Save Today
This is how we’ll put the advantage of cutting back into perspective. If you saved an extra $4,000 a year, in less than three years, you have a down payment to secure a house with. You can pay off the entire half of a new car regardless of your credit score.
But there are other things you’ll have to do: purchases you’ll have to stop. The first step to make extra money is to stop wasting your money.
Here they are below:
Leave debit and credit cards at home
Don’t leave home with them. You’re not living in remote Alaska where you need all your resources just to walk outside. Walking around with just emergency cash is not a big deal. There are people everywhere with cellphones, eyes, hand and ears.
Go food shopping once a month
This can be a tough one. The answer is simple. You learn to budget for food by starting with as little resources possible. That way, you know how many eggs you need. …etc.
Know your net worth
How much money do you have at the moment?
This includes:
- the change in your pocket
- the dollars in your glove compartment
- your checking account
- savings account
Notice that you calculate everything you HAVE. You DO NOT add up the money you’re supposed to get.
You don’t own it yet, so it can’t help you.
Take lunch to work (Duh!)
Get into the practice. Anyone can make a sandwich and pick out some fruit. Don’t worry about being cool. You’ll have money instead.
Cut the gym membership
The average cost of monthly gym membership is $58. You save $696 every year by cutting that back. Gyms see less than 25 percent of it members monthly. Why waste your time/money if you aren’t showing up. Buy a pair of running shoes, and call it a day. You’re not training to be the next Mike Tyson.
Cut Back the Cigarettes
A pack of cigarettes costs an average of $7.26 per day. If you cut back, you save $2,649.90 a year.
Cut Back on Alcohol
Americans put roughly one percent of their spending into alcohol. But per individual, this is $1,200 spent yearly on booze. Saving it is a better option.
Stop Eating Out
Eating out costs the average American almost $3,000 a year. You could be saving thousands by staying with the food from the grocery store.
Make extra money by saving the income you already have. Only purchase the necessities. Treat yourself every now and then..But, these treats turn into bad spending habits when they happen too often.
