Many of us try to think of ways to make extra income anytime we are aiming to reach a financial goal. There are so many ways to ‘side hustle’ online these days, from freelance writing to selling used items. Earning more on top of your full time salary is entirely possible, but it’s only one small piece of your financial puzzle.
Reaching your financial goals isn’t only about making more money. It’s also about spending your existing income more wisely. And just bringing your coffee to work every day may not cut it either. Having optimal financial health can sometimes require larger lifestyle changes. Consider these four impactful life changes that can help improve your finances:
Downsizing Your Home
According to the census bureau, today’s homes are approximately 1,000 square feet larger than in 1973. That’s a lot more space that may not really be necessary. Owning a McMansion may seem like the American dream, but many homeowners couldn’t afford to pay their large mortgage when the housing market tanked and found that their homes drastically decreased in value. It’s wiser financially to live in a space that’s big enough but not too big. Not only will you be saving on the home itself but also the maintenance and upkeep expenses all homeowners and even renters have to face.
David’s Note: Living in McMansions doesn’t always provide a good lifestyle. I know quite a few people who grew up in one and a good portion of those friends don’t have a good relationship with their parents. Some of them seldom spent time with their parents because the adults were working all the time (perhaps to pay for the high expenses), while others lived in those 8 bedroom “castles” where they were always at one side of the house while their parents were in the opposite “wing” of the house. One of my friend complained to me that different cousins started visiting and living with them all the time soon after they bought a gigantic mansion. I thought that sounded nice at first, but she said it was very distracting when those visits happen literally all the time.
Your results may vary but these examples gives me pause about owning one of those big beautiful homes.
Automating Your Savings
Many people don’t save much every month not because they can’t afford to but because they forget. They don’t have a budget and before they know it, they’ve spent their paycheck on frivolous items they didn’t need. Don’t be that person. It’s simple to automate your savings every month through your bank. This way, a percentage of your income will automatically be put in your savings account. Out of sight, out of mind.
Minimizing Your Waste
Waste is a huge issue in this country of abundance. Think about your weekly trip to the supermarket – how much of it do you really consume and how much of it do you toss? Learning to buy only what you truly need will save you a lot of money over time. You can do this with some simple planning. For instance, when it comes to grocery shopping, sit down once a week and create a meal plan so you know exactly what you need to buy when you get to the store.
Investing in Memories
Many of us have an obsessions with things. After all, having the nicest car or the newest gadgets can serve as a status symbol. But let’s stop trying to keep up with the Joneses. Instead of spending your money of things that will depreciate in value, invest in memories instead. Take amazing trips, spend time with friends and family, go on an adventure. These are things that will last a lifetime and be truly worth your money.
Improving your finances can take a lot more than just saving money. It’s about changing your lifestyle as well. You do have to be committed for it to work though. Figure out what’s important to you and how you can use your money more wisely to get there. The result is worth the effort.
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Never fell into the trap of “keeping up with the Joneses.” Hubster and I, both in our late 50’s, live in a 1,100 square foot 100+-year-old home in one of the more affordable housing markets in the US. We drive 3 “hoopties,” all paid for, and have no debt except for our mortgage (which is nearly paid off as well). Our income is modest because we both work part-time – by choice – but what we do make is able to cover the bills, put money aside in an emergency fund, and enjoy a little extra for charitable giving, the occasional meal out, and a vacation here and there, which is usually tax deductible because we’re musicians and the travel typically involves a gig.
I could be doing a bit better in terms of retirement savings, but I’m working on that, too. Anyone who thinks I ought to be living in a McMansion and driving a newer car can just eff right off!
Thanks for taking time to create a helpful and informative article also for sharing us this unique content.
Great post! Agreed that changing your lifestyle is worth the effort.
Agree about the “McMansion” thing. These homes are not only a nightmare to clean, insure, heat and cool, but the property taxes are insane. A close relative lived in such a home in a desirable, high-dollar city (not going to get into particulars) and mentioned to me that the property taxes were upwards of $10,000! Really? No thanks.
I live in a small town in the Rocky Mountain region in a home built in 1919. Its living space is less than 1,100 square feet, and it’s just perfect for my husband and I. What it lacks in luxury on the inside, it makes up for in many different ways, like lots of trees, front yard the size of a small park, and best of all, property taxes that rarely exceed $500 a year. Because my overhead is so manageable, I don’t have to constantly chase high-stress jobs just because I need the money. People tell me all the time how lucky I am. I tend to agree.
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I always plan my shopping in an app on my phone and use that as my shopping list. That way I know what I need and also avoid buying unnecessary things that I don’t.