Saving Money

1.How to refrain from spending while still retaining your happiness

There are two main methods to determine if you are earning less than you spend.

  • Are you in debt?

If you are in debt, ask ‘what are your debts from?’ and if you can’t find an answer to that then it becomes a concerning issue. e.g. If you don’t own a car or a conservatory, but you’re wasting your budget on using cards or loans, it piles your debt.

  • Do a budget to work out where you’re WASTING cash

If you are overspending, there is an easy way to check. Use a budget planner to estimate your annual income and provide you with an estimate of how much you spend compared with what you earn.

2.How to cut down from overspending on everyday items e.g. coffee

  • Put any bonuses into savings.

Plan for what you’ll need for the week before going to the store to prevent you from picking up extra you do not need.

  • Manage your stuff in storage (closet, etc) and sell what you don’t need or want.

3.Efficient ways to save £5 per day

You don’t have to live a frugal lifestyle to save money. In fact, if you saved just a fiver per day, not only would you be living comfortably but you’d save one-million pounds in 32 years from now.

Reduce your monthly rent to £31

Try negotiating for a greater deal with your landlord to save you roughly £35 a week or perhaps consider moving to a cheaper place of residence. 

Cut down on expensive meals

You can easily live without that £50 meal every week and get by with sometimes having a £15 meal.

Negotiate prices

So many things for sale can be negotiated. For instance, if you bought a new tyre for your car, try to persuade to get a better deal to lower it down from £165 to £125… that is equal 8 days of saving in just a 1-minute conversation! 

Buy a cheaper car

At the end of the day, the car’s sole purpose is to commute. It shouldn’t concern you whether the car is luxury or not especially if you don’t commute often.

Get a cheaper haircut

Do you really need to pay £100+ for a haircut? You can get an equally and if not better haircut for a fifth of that price.

4. What the 30-day rule is and how to take advantage of it

The 30-day rule is a simple rule to prevent yourself from wasting your budget on something/service you’ll only use once.

Here’s how it works:

  1. Whenever you feel the impulse to spend — whether it’s for shoes, videogames, or a new car — force yourself to stop. If you’re already holding a product, put it back and leave whatever store you’re in.
  2. When you get home, note down the name of the good/service you want, the store where you found it, and its price. Also write down the date to make sure it’s been over 30 days.
  3. Now post this note somewhere you won’t forget (e.g. a calendar, the fridge, a bulletin board).
  4. For the next 30 days, consider if you really want the item, but do not buy it.
  5. If, at the end of the 30 days, the desire is still there, then definitely buy it.

5. How a billionaire spends their money compared to the average person and what to learn from them

The main difference between common folk is that the billionaires get pleasure making money, but do not enjoy spending it and are therefore frugal.

Frugality— a commitment to saving, spending less, and sticking to a budget, is one of the characteristics most predictive of net worth as spending less than you earn is a hyper- efficient form of saving money.

Warren Buffett, the third richest man in the world (after Jeff Bezos and Bill Gates consecutively) still lives in his childhood home in Omaha, Nebraska that he bought for $276,700 in 1958(in today’s dollars). He’s never upgraded to a smartphone, pays $18 for a haircut, and spends no more than $3.17 on his daily McDonald’s breakfast — even though his estimated net worth is $84.6 billion.

If you would like to know more about how billionaires spend their money, i’d definitely recommend you watch this video:

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