Kathleen Elkins implemented a “cash scheme” – and it lasted for two months. The budget that she uses is $60 (nearly 1.4 million)/week to cover everything (including grocery store shopping, bars and restaurants, laundry, toilet paper, transportation, etc.) transportation), in addition to their fixed costs.
After four weeks of spending less than $60 a week, she’s learned some good ways to spend every penny in an expensive city like New York.
If you’re looking to save more and spend less, here are 7 tips she shared.
1. Track your spending
Kathleen Elkins always takes 5 minutes at the end of each day to record everything she buys into an Excel spreadsheet. This routine makes it easy for her to see the total cost.
We don’t realize how much money we’ve spent until we start writing down everything we buy. And this dashboard helps her get an idea of the expenses that tend to be mindless and the things that can be cut. At the end of each day, she also records an unnecessary expenditure that she has made.
This chart also helps her to be more responsible – feel more deliberate in every purchase.
It also challenged her to reduce expenses every day, every week, and every month. Recording expenses became a game and she started to see how many days in a row she could spend between $0 – $5.
An excel sheet will help you have an overview of spending by day, week and month. Illustration.
She also always knows exactly how much is left in her budget by looking at this chart. For example, if Monday and Tuesday are high spend days, she’ll make sure to cut for the rest of the week.
2. Make food at home
Restaurants and bars always have a way of making you spend more. The more food you make at home, the more you save. In addition, cooking for yourself is more hygienic than eating out.
Elkins also tries to limit the number of times she goes to the supermarket or convenience store, because this is also the time when she usually picks up more snacks or drinks.
Of course, this doesn’t mean Kathleen Elkins has eliminated going to restaurants and bars entirely. She still sees them as a fun way to socialize and just makes sure to set a budget for dining out and stick to it.
3. Cut down on grocery bills
Grocery bills are completely under control. Because you are not bound to a contract like you are using a cell phone or the internet. And you can very well find a way to cut back quickly.
Let’s start by figuring out how much you spend on groceries each month. View credit card statements or organize shopping receipts. Use the data to make an estimate and then aim to cut that number.
Set a realistic goal, such as cutting your bill by 25% or a specific amount, that will make sense for your spending habits. Illustration
4. Set a savings goal
Having a specific savings goal is an extremely effective money-saving strategy. For example, saving on travel, saving on upgrading laptops, phones, cars…
Saving for travel, buying a house, buying a car, money for children’s schooling… All will be the motivation to help you happily save every day. Illustration.
Every time you’re about to buy something you don’t necessarily need – like a cup of coffee, a manicure, etc., imagine what that money could buy you while traveling or other things. dream item. And then wonder if you really need to buy them?
5. Say no when necessary
It’s incredibly easy to spend money in any city, and the pressure to spend doesn’t help either. If your friends are ordering an appetizer and a few drinks, chances are you will too, even if you don’t have the money.
After living on $60 a week cash, Kathleen Elkins feels more comfortable turning down meetings politely.
Of course, you can completely agree to meetups without spending money – just build relationships, meet friends and family.
Just because eating is the most popular way to socialize doesn’t mean it’s the only way. You can find free or cheaper activities in the area like walking in the park, visiting museums, exhibitions… Artwork.
6. Walk, bike or use public transport to get to work
Instead of using motorbikes or cars to go to work, you can use public transport or walk to work if it’s close.
Like Kathleen Elkins used 12 minutes to take the subway or walk 35 minutes to get to work. This way helps her save 117 dollars (2.7 million)/month.
If your house is too far from the workplace, you can ask colleagues and share a car.
The distance of 2km is completely walkable – without worrying about traffic jams, while exercising and saving money. Illustration.
7. Cash only
When you’re on a tight budget, not using a card can make all the difference. It helps you to understand clearly and accurately how much money is being spent and how much is left in the budget. Also, seeing the coins disappear right in front of you makes you appreciate them more.
at Blogtuan.info – Source: Kenh14.Vn – Read the original article here