Frugal Living: Investing for Your Future and Happiness
Investing in your future security and happiness involves sacrificing some present luxuries, from that latest iPhone to those frequent out-of-town dinners. But come time to weed out the unnecessary expenses, most people find it difficult to rearrange their financial lifestyle in order to suit this newfound goal. Drive a Single Car If you live in an urban area where public transportation is accessible, it may even be better to ditch the car altogether. Nonetheless, if you are driving multiple cars, try driving a single car for the entire family. Try to set up a schedule where the entire family can carpool without being kept from their work or school.
Switch to a Smaller House A larger house equates to a higher down payment and monthly mortgage payments. It’s also costlier to maintain and repair. A smaller house gives you the same comfort without the financial pressure. Only consider a large house if you have many children and/or is living with relatives. Avoid Discount Deals Getting tempted to buy an item just because it’s buy-one-take-one is a bad spending habit that can cripple your ability to save and invest for the future. To avoid impulse buying, make a list of items you need to get on your next trip to the grocery store or department store. Once there, stick with the list and be on your way. Invest Savings Frugal living will only have a small impact if the savings are not invested into the appropriate interest-growing channel. Invest in stocks, government bonds, or even the riskier options and commodities. Consult a financial expert to help you identify investment opportunities with good risk premiums. Quit Bad Habits Financial stability must also go hand in hand with physical wellness in order to achieve future security and happiness. Quit smoking and drinking alcohol or minimize your intake gradually until you can completely remove the substances from your system. Premium cigarette packs can cost upwards of $14, and a regular smoker can consume about 2 packs of cigarette per week. Imagine how much you can save by cutting cigarette smoking from your lifestyle. Avoid Swiping Your Credit Cards Credit cards aren’t exactly the root of all evil, but they do give you the power to become financially irresponsible and impulsive. If you are living from paycheck to paycheck each month, it is best to limit your credit card transactions to avoid penalties on late payments. Jonah Engler is a financial expert from NYC.