3 Financially Unsound Ways to Spend Your Money When Living Paycheck to PaycheckPosted:
Are you living above your means? If you are, you aren’t alone. Even high earning individuals struggle with money.
Almost 30% of people making $150,000 or more have less than $1,000 saved. This means they are spending their money on unnecessary items.
No matter what your income, you can ease the financial pressure by making smart spending choices.
Keep reading for three ways you may be overspending and not realize it. Keep reading for three things that sabotage your efforts to spend your money wisely.
1. Eat Out a Lot
You’re eating out at a different place every night. It isn’t helping your wallet.
If you work in an office try bringing your lunch to work. If you work from home, you have no excuse; you are steps away from the kitchen.
This doesn’t mean you have to stop eating out altogether. You just need to budget your income to know what you can afford. There are places online, like this site, that can help you create paystubs and track payments.
You may find that you have enough extra income to go out to eat once a week.
2. Drive a Hot Sports Car
You don’t need to drive a junker, but you are also wasting money on a hot sports car payment every month. Your dream car and your budget probably don’t align.
Start by looking at your monthly budget and determine what you can comfortably afford. Now look for a vehicle in this range.
You can narrow your choice down further by deciding what features are important to you. Look at features like trunk space, gas mileage, and technology.
To save money even more, look for a vehicle that gets excellent gas mileage. You should also look for a reliable car that requires little maintenance and repair.
3. Buy a Big House in a Trendy Area
Real estate is notorious for raising and sinking property costs based on demand. So if you buy a home in the trendiest neighborhood, you will pay top dollar for it.
There is also the misconception that you need a huge home to show how successful you are. Then there is the theory you should buy big to prepare for those many kids you may have one day.
These are all pitfalls that people fall into and end up spending significantly more than necessary. You will have a house with a large down payment, high monthly mortgage, and expensive upkeep costs. All for a home that you won’t even use all of for many years.
Instead, look for a home that will be a good investment and is the size you need in the short term. Then you won’t have to worry about the monthly payments and upkeep. Because if you don’t keep that large home well taken care of, your investment will be worth nothing.
Instead, buy smaller and use the extra cash to improve on the home. Now you can breathe easy with a lower bill.
Spend Your Money Wisely
When you live paycheck to paycheck, you put yourself and your family into a precarious position. One emergency bill and you are now financially under water.
You can save yourself before this happens by adjusting your budget. Decide how you want to spend your money by focusing on the necessary items.
Don’t fall into the trap of giving in to social pressures and ideas. You don’t need a fast sports car or a trendy home.
Looking for more ways to save? Check out our local deals!
Information contained on this page is provided by an independent third-party content provider. Frankly and this Site make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact email@example.com