Lets take a look at some great money saving tips that can help cut down expenses in your monthly budget.
- Limit eating out – This can be a huge hidden expense for peoples monthly budget
- Pay off your credit card debt– The interest in credit cards is the highest for any debt, so pay this off fast
- Invest in your home in moderation– Upgrades to your home can increase its value in the long term
- Don’t use a coupon for something you don’t need– Just because its on sale, or a good deal, does not mean you need it
- Know what your hidden fees are– some stores or services have hidden fees for things that can easily be avoided, make it your job to know what you are going to pay before buying.
If your expenses can be lowered by any of these tips you will create more money you can put towards savings and investing.
Small changes can have a BIG impact. For example;
The average person spends $3.28 a day on coffee. That’s $22.96 a week, or $91.84 a month or $1197.20 a year.
So in your the working lifetime from age 20-65 the average person will spend $53,874! That is not including what would happen if you invested that amount. $3.28 a day for 45 years (by investing the $1197.20 each year) in a low interest (5%) investment you would have $200,752.68!
A coffee a day for your whole working life, or $200,000 … I think I should switch to drinking more water!!