So I share lots and lots of advice and stuff about how one can possibly go about stretching each and every one of their pennies spent, which is only a good thing I guess. After all, the cost of living is indeed rising at a rate which many of us cannot keep up with by default, so it’s a handy skill to learn, that of how to ensure you squeeze every bit of value out of any financial transaction you enter into.
While I’m happy to share what are effectively “micro” cash-saving tips and hacks, doing it in-the-small and occasionally in this fashion can only go so far. You have to take a few steps back and zoom out every once in a while so that you can have a good look at how the bigger-picture is developing. There has to be a bigger picture, for starters…
The bigger picture is that of the “end-goal” to reduce your cost of living and operate your personal finances in such a way that as time goes by, you build up a surplus which can either be saved up, ideally invested or just parked in case of a rainy day. Additionally, before moving to a new place or calling a state your home, it may be advisable to check for the average living cost of that place. For instance, you can visit https://tubac.com/tubac-az-cost-of-living or other such websites that can break down the cost of living of the region you wish to relocate to. That way, you can plan for your expenses and savings beforehand.
I mean look – it’s okay not knowing what to do with some money you have lying around for a while. You can always get back to it later – get back to how you’re going to proceed to make wise decisions about what you’re going to do with it, that is… In the meantime make sure not to spend it and undo all the efforts which went into uncovering it in the first place.
How do you do this though? It’s simple. You have to put some perspective on your living standards and proceed to determine what it is exactly you’re comfortable with. Try to make a list of all expenses that fall under the cost of living in Houston (or whichever city you live in) and separate those from the costs that can fall into the leisure category. Do not fall into the trap of proceeding to match your means to your living standard, especially if that living standard is higher than that which you would otherwise be content with.
What you can consider, however, is making upgrades to your home that offer you versatility or enable you to make savings. For example, you could have a look at modern flex room ideas, and renovate a room in accordance with your preferences. Maintaining a flex room enables you to transform that space, and turn it into an office, guest room, personal gym, or even a playroom. This reduces the need for you to make extensive changes to your home in many situations. One upgrade you can make to enjoy big savings is the addition of a solar power unit. The cells you attach to your roof can help produce electricity, and even heat up your home. This is a practical approach to enhancing your standard of living.
What you want to avoid doing is making unnecessary expenses that end with you having to pay more bills. Don’t upgrade to a bigger car which guzzles more gas for example and don’t start being reckless around the house with things that contribute to your variable costs, such as your utilities. A lot of the things which you spend your money on forming part of your existing life are perhaps representative of a standard of living you already find comfort in, some of which might even offer you a lot more value than what you pay for them.
Some of the best Christmas gifts to send can still be found on platforms such as Broadway Basketeers’s online store for example, so there isn’t all that much higher to go, if at all. Let the money pile up and if you can, invest it in a segmented way which allows for part of it to grow, fuelled by compounding interested.