Many of us try to think of ways to make extra income anytime we are aiming to reach a financial goal. There are so many ways to ‘side hustle’ online these days, from freelance writing to selling used items. Earning more on top of your full time salary is entirely possible, but it’s only one small piece of your financial puzzle.
Reaching your financial goals isn’t only about making more money. It’s also about spending your existing income more wisely. And just bringing your coffee to work every day may not cut it either. Having optimal financial health can sometimes require larger lifestyle changes. Consider these four impactful life changes that can help improve your finances:
Downsizing Your Home
Downsizing Your HomeAccording to the census bureau, today’s homes are approximately 1,000 square feet larger than in 1973. That’s a lot more space that may not really be necessary. Owning a McMansion may seem like the American dream, but many homeowners couldn’t afford to pay their large mortgage when the housing market tanked and found that their homes drastically decreased in value. It’s wiser financially to live in a space that’s big enough but not too big. Not only will you be saving on the home itself but also the maintenance and upkeep expenses all homeowners and even renters have to face.
David’s Note: Living in McMansions doesn’t always provide a good lifestyle. I know quite a few people who grew up in one and a good portion of those friends don’t have a good relationship with their parents. Some of them seldom spent time with their parents because the adults were working all the time (perhaps to pay for the high expenses), while others lived in those 8 bedroom “castles” where they were always at one side of the house while their parents were in the opposite “wing” of the house. One of my friend complained to me that different cousins started visiting and living with them all the time soon after they bought a gigantic mansion. I thought that sounded nice at first, but she said it was very distracting when those visits happen literally all the time.
Your results may vary but these examples gives me pause about owning one of those big beautiful homes.
Automating Your Savings
Many people don’t save much every month not because they can’t afford to but because they forget. They don’t have a budget and before they know it, they’ve spent their paycheck on frivolous items they didn’t need. Don’t be that person. It’s simple to automate your savings every month through your bank. This way, a percentage of your income will automatically be put in your savings account. Out of sight, out of mind.
Minimizing Your Waste
Waste is a huge issue in this country of abundance. Think about your weekly trip to the supermarket – how much of it do you really consume and how much of it do you toss? Learning to buy only what you truly need will save you a lot of money over time. You can do this with some simple planning. For instance, when it comes to grocery shopping, sit down once a week and create a meal plan so you know exactly what you need to buy when you get to the store.
Investing in Memories
Many of us have an obsessions with things. After all, having the nicest car or the newest gadgets can serve as a status symbol. But let’s stop trying to keep up with the Joneses. Instead of spending your money of things that will depreciate in value, invest in memories instead. Take amazing trips, spend time with friends and family, go on an adventure. These are things that will last a lifetime and be truly worth your money.
Improving your finances can take a lot more than just saving money. It’s about changing your lifestyle as well. You do have to be committed for it to work though. Figure out what’s important to you and how you can use your money more wisely to get there. The result is worth the effort.
Editor’s Note: Did you know about the service called $5 meal plans? For $5 a month, they send you recipes of delicious, healthy, yet cheap food that costs just $5 a meal.
Several of my friends signed up and they are able to eat at home more because the instructions are easy to follow, making everything convenient. The deal also comes with grocery shopping lists, which saves them so much time. Check it out yourself by clicking here and you too may be able to save more and become healthier at the same time.