Written by Jeffrey Strain
When people talk about getting their personal finances in order, they usually try to find relatively pain-free and low-cost ways to reduce debt and increase savings but this is a long-term approach which some people just cannot “afford”. For them it may be worthwhile to consider taking the hard way out of debt. [Let me explain.]
Instead of making small changes, make big changes which can have a large impact. The advantage is that you can put a huge dent into any debt you might have or supercharge your saving rate, with large increases over a short period of time. Here are 10 hard ways to get your finances in order.
10. Live in the smallest house/apartment you can find – and save big!
Instead of buying the biggest house you can afford, live in the smallest house you can find. Sell your current house and buy one that is half the size or even smaller. Challenge yourself to find the smallest space that you can stand to live in. Take a chapter out of your college days and think one-bedroom or studio apartment (or a lot of roommates). Though it’s not easy to live small when everyone around you is living large, your finances will be healthy and well in no time as those around you struggle to make their mortgage payments.
9. Save 50%+ of your income – yes, 50%!
Saving 10% of your income is the common recommendation, but you can do a lot better than that. Shoot for saving 50% or more of you take home pay. With a bit of effort, anyone can save 10% of their income, but it takes discipline and effort to live on only 50% of your income. By doing so, you will ensure you don’t have any financial problems and that you can retire years, if not decades, earlier than your coworkers.
8. Get rid of all your gadgets – and save on pricey subscription fees!
20 years ago you didn’t haveiPods, cellphones, computers, DVD players, flat screen TVs and a lot of the other gadgets that are deemed “essential” today [- and you don’t really need them today]. You can get your news from a newspaper at your local library, where you can also check email or use the computer. Not only will you save hundreds a month on subscription costs, you’ll save thousands of dollars a year on hardware costs. While there is no doubt that many of today’s gadgets are convenient, it is readily possible to live without them if you are committed.
Leave A Comment