Regardless of how much income you have, cutting unnecessary expenses is absolutely critical to building wealth.
Here are some examples of small changes that I've made to save money:
What I was doing: Going to the movies once a month with my wife. 2 tickets @ $10 each = $20 + $8 for snacks = $28. $28 x 12 months = $336 per year.
How I saved: Subscribe to Netflix for $9 per month, and make our own snacks at home for about $2. So $11 per month x 12 months = $132 per year. Annual Savings = $204
What I was doing: Paying $39/month for my gym membership.
How I saved: Joined Planet Fitness for $10/month. Maybe it’s not as fancy, but I can still get in a good workout and save $29 per month. Multiply by 12 for an annual savings of $348.
What I was doing: Eating out at restaurants 2 times per week with my wife. With an average meal price of $40 for the two of us, that comes to $80 per week or $4,160 per year.
How I saved: We now eat out once a week instead, spending $40 per week. Each meal at home costs about $10, so we save $30 per week or $1,560 annually.
Those three steps alone will save us over $2,000 per year.
Now, you want to make sure that you’re still having fun and enjoying life. After all, what good is having millions of dollars in the bank if you spend your days feeling bored, sad, or anxious? If you are a big time movie buff, and going to the movie theater is something that’s extra special for you, then go for it! You can find savings somewhere else that will be less painful for you. The point isn't to deprive yourself of things you enjoy. In fact, it’s the opposite. By taking these small measures to improve your financial position, you will gain financial freedom. And in turn, you’ll be free to enjoy even more of life’s luxuries.
