It costs money to live. In fact, anything and everything can be bought with money. Food, water, shelter, transport – we pay for these necessities and many others. Money really does make the world go round. Of course, no matter how good your job may be, your earnings can quickly wash away if you aren’t adequately prepared to tackle the expensive parts of life. Becoming an adult is all about being smart with your finances.
The best way to tackle the expensive parts of life is often to avoid them altogether. You can’t always run from certain costs; you need to pay utility bills so that you have electricity and running water, for example. However, that doesn’t mean it’s impossible to reduce those costs so that your monthly expenses are a little easier to handle. Tackling the big expenses you’ll face during your life is all about planning. If you’re struggling to do that in your current situation then here are some financial pointers that could help to reduce your cost of living.
Create a budget
Firstly, you should aim to create a budget. Most of the expenses you face in life can be predicted and that means they can be managed. Instead of simply earning and spending money endlessly, you should have a plan of action. Creating a budget can help you to calculate how much of your earnings you’ll have available once you’ve covered all the necessary costs you face. Calculate how much your rent (or mortgage payments), home utilities, gas, groceries, and other bare necessities cost you every month. Set yourself a limit for these things if the sum occasionally fluctuates. Subtract this cost from your monthly earnings and you’ll know how much disposable income you have.
Most importantly, you need to learn that your disposable income doesn’t have to be spent. Yes, you’re allowed luxuries in life, but you need to think about all the unexpected costs that can come your way in life; accidents, fines, new clothes, new light bulbs, and other small but unexpected costs that slowly add up. It’s always good to have excess cash. When it comes to luxuries, you should set yourself the 30-day rule. If you see something you want in a shop then come back to it in 30 days. If you still want that non-essential item then treat yourself to it. If you’ve forgotten all about it then that’s a good thing; it means you never really wanted that thing in the first place.
Think of your health
The best way to save money in life is to think of your health. Of course, some might disagree because unhealthy food can be cheaper than healthy food, for example, but the damage to your health will end up costing you (both in terms of your wellbeing and your finances). Plus, a healthy diet and a healthy exercise routine don’t have to be costly. Running around your local park doesn’t have to cost you a thing, and a full but varied diet can be cost-effective too if you shop in the right places and learn about the food your body really needs. It’s worth it to avoid costly medical visits in the future.
Of course, we can’t always control what happens to our health. And there’s every chance that health problems in the past or the present have already caused you financial and emotional heartache. As briefly mentioned in an earlier point, accidents are often unexpected and costly. In fact, medical bills can be so expensive that they add an extra sting on top of whatever health problem you’ve already endured. Additionally, not all medical costs are entirely fair. You might want to look into medical malpractice lawyers if you feel that you or someone you love was the victim of a medical error. You might be entitled to compensation because negligence in medical environments is damaging both to patients and the families who still have to cover the costs, regardless of the mistake.
Start saving
If you want to tackle the expensive parts of life then you need to be ready for the unexpected. As explained throughout this article, you can’t predict every cost you’re going to face in life. However, you can create a financial safety net for yourself to avoid suffering a damaging blow to your bank account when such an unexpected event does arise. You should open a savings account and set up a standing order that regularly transfers a portion of your earnings to your savings. That way, you won’t be tempted to spend money from your emergency fund.
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