Thinking in Terms of Net Worth
Small Ways You Can Start Saving Money That Will Really Add Up
Almost all of us wish we had more money and would love to get a pay rise. In reality though, these two things are only somewhat correlated. Your salary on its own does not dictate how much money you have because it doesn't take into account your outgoings.
The smart money management approach is to think not in terms of salary but in terms of net worth – in terms of what you can do to save money so that what you have coming in goes further.
This is where the concept of kaizen can be very helpful and informative indeed. Kaizen is all about making small incremental changes to effect big change: and in this case that means saving money in lots of small ways throughout your normal routine. This can add up to have a huge effect, so read on to see just how much of a difference a few little savings can make throughout the days, weeks, months and years…
Easy Places to Save Money
- Forego your morning coffee – If you're currently reliant on a morning coffee to start your day, then kick the habit and you could save $2.50 or more every weekday. That adds up to $12.50 a week and $50 a month. That's then $600 a year. Which is enough for one person to go on a small holiday!
- Get off your bus/train a stop early and walk – Again this will likely save you up to $2.50 a day which can add up to another $600 a year. Now you've saved over a grand, which is a nice nest egg.
- Turn your heating down one degree – This is actually enough to potentially save $100 or more over the year but you're almost guaranteed not to notice it.
- Turn your brightness down – Turn the brightness down on your TV and you can also save yourself energy. Again, you're almost sure not to notice it either!
- Cancel subscriptions – This means magazines, Netflix, Spotify, maybe even the gym! Many of these things can be enjoyed for free in other ways (working out from home for instance or getting a library card to check out movies and books) and will save you a lot of money over time.
- Give up smoking – This is a huge one that can save thousands each year...not to mention your health and all those you live with.
Add all these things up and you could find yourself several grand richer without earning a penny more!
Until next time...
Cheers!
Lisa
P.S. Don't forget to check out the app I use to get money back when shopping at my favorite stores: https://www.rakuten.com/r/LADMCG?eeid=28187
The life philosophy of A House With Four Rooms suggests thinking of yourself as being four rooms: physical, mental, emotional, and spiritual rooms. It advocates for doing something daily for your physical, mental, emotional, and spiritual well-being.