People who know that that their discretionary spending budgets are entirely too high may want to change their ways but they lack willpower. When you spend five days a week traveling for work, spend most of your income on housing, and only have a few hundred dollars a month to call your own, you might have difficulty resisting splurging. The rewards associated with saving money can’t be felt immediately, so there can be a lot of resistance when it comes to thinking logically and making wise investments.
One area that a lot of people pay more than they need to is on car loans that are usually taken out before they compare all of their financing choices. Paying even $5 extra a month on new vehicle financing can amount to a lot over the course of a loan.
These are the three ways that you can make an immediate impact on your budget that will help you to retire earlier.
1. Don’t Pay for Cable
If you really enjoy watching television, you might not be able to imagine going without premium channels. Cable television subscriptions make it convenient for you to watch all of your most beloved shows and movies in a neat little bundle, but there’s likely more than one way for you to get premium entertainment options.
Cancel your cable television or satellite subscription and officially cut the cord – to your bank account. Stream your live television shows for a fraction of the cost to watch local programming and perhaps upgrade for a few extra dollars so that you can watch premium channels as well. Lots of shows and movies are also streamed legally and for free on the web, so make a bit more effort when it comes to entertainment choices so that you can have a healthy budget.
2. Be Smart About Transport
Having transportation is not just important because you need a way to get to work, it can also help you manage your budget better. When you don’t have a vehicle, you need to pay for public transportation, take cabs or spend more time walking everywhere you need to go. However, taking out a loan on a new car just because you are approved can cause you to fall headfirst into a tumultuous world of bad debt. Figure out what you can comfortably spend on car payments then choose a vehicle and auto loan that meets your needs.
3. Always Use Coupons
You don’t need to carry around a binder full of neatly organized coupons in order to save a nice amount of money on expenses. What you should do is avoid going into any retail store without a plan in advance. When you visit the grocery store, know what products you are going to purchase and find out which deals are being offered. If you have coupons, pay attention to the expiration date so that you don’t waste discounts.
Cut out the cable subscription, spend a reasonable amount on car payments and use coupons on everyday purchases to increase your total yearly savings by thousands every year. Keep doing this for a decade and you will certainly be able to retire a little bit earlier. Take the money that you save by budgeting and invest it if you want to reach retirement well before your peers.