Here are a few ways I have been able to travel, have awesome gear for my hobbies and still have money left to save. These aren't hard and fast rules, just simple examples of things that worked for me.
You need a budget regardless of how you want to live, if you have no idea where your money is going you are likely spending more than you realize in categories that you'd rather not. I track expenses using Mint.com They made me aware of Chase charging me $20 / month in fees. I knew I qualified for a no fee account. I called Chase and they not only stopped charging me, but also gave me back $100 in charges that I had been falsely charged. Without a budget I would have never noticed and therefore had $100 less in my pocket and $20 less a month to spend on things i enjoy. Why the hell should Chase get my money? This is just one small example of things you catch when you have a budget.
Always wait a few days before making a non essential purchase. You will have a chance to think it over and either realize it's not that important to you, or research it more thoroughly, reducing the likelihood of buying the wrong model, or paying too much. Look on Craigslist for barely used versions of what you want. You can save thousands doing this. I bought a 3k macbook for $1300 and it still had 3 years of applecare.
Having a good credit score is worth more than just bragging rights and for getting a mortgage. When you qualify for top tier credit cards, you are eligible for ridiculous benefits. I just got the Chase sapphire reserve card, which gives you $1500 in free travel rewards for spending $4k in the first 3 months. The annual fee of $45 is offset by $300 in travel reimbursements and $100 towards TSA Pre check. Access to 900 airport lounges is free. Lounges have free food, water, and some even have showers. Forget paying $18 for a crappy panini bottle of water. This is an example of where a credit score can earn you free money and benefits that make travel more fun. How can Chase afford to do this? They make so much money on interest fees from all the people with huge credit card balances that they can give money away and still be profitable. You get to choose which side of the equation you want to be on.
Be Creative I love kayaking, fishing and spearfishing. It really makes me happy and I spend money on it. When I was buying an expensive new kayak this year, I found a company one state over. They shipped the kayak to me via a ferry making it an online purchase. Boom, saved $225.00 in taxes for an extra hour of my time. Used that money to add a fish finder at no extra cost. It's small things like this that add up over time.
Get what you can where you can I moved money from my Chase savings account to a trusted online banking site. My interest went from .09% with chase to 1.05% Ended up making an extra $200/year in interest per year for 15 minutes of my time. I can save that money or use it for fun. Bottom line is it's my money, why should Chase have it for free?
Spend on passions, Save on everything else If you love sailing, painting, photography and fine dining you should spend money on those things. If you don't you won't be happy. But that being said, once you know what matters to you, you also know what matters less. Maybe the 5th pair of boots that are on sale are cool, but not buying them leaves another $50 in the budget for brushes, a camera lens or dinner at that new burger joint. When we give in to every impulse we give up some of the experiences that actually matter to us.
You probably won't die tomorrow I know tragedy happens, I've had it happen in my own family. This is why following your passions is so important. However, it's important to realize though that this is statistically unlikely to happen to you. Spending beyond your means because you might die is like breaking up with your girlfriend because she might cheat on you. Do you use unlikely worst case scenarios to plan any other aspect of your life?
It All Adds Up Moving money around to make an extra $200. Buying a kayak out of state to save $225.00. Passing on a few sale items that you realize you don't really need. Calling your bank to get $100 in fees back. Credit card rewards points? Any of these things taken individually could easily seem negligible and dismissed as not really moving the needle. Together, they add up to be $2500 I saved this year by spending about 2 hours optimizing how I spent and stored my money. That's $2500 guilt-free bucks to spend on drinks, dinners, hobbies, flights or as one guy in the comments section of my last post said "cocaine off of a hooker". Though to be fair I'm not sure if you can redeem chase travel points for that.
The point of this was to show examples of how small changes can lead to big savings and can add to your enjoyment of life. You don't have to live like a pauper to make smart decisions and to save money.
Submitted January 10, 2017 at 03:48AM by hungryfreediver http://ift.tt/2j2ETig
