Money management has become a radical topic in the past few years. If you want to stay rich, you must save half of your income. Try to save at least 50 percent of your income after tax deductions. Funnel a part of your income towards emergency funds, a retirement portfolio and debt repayment. At first glance, this might seem like an absurd move. A lot of people treat this as an extreme idea. Believe it or not, a good number of people are saving more than 2/3rd of their income. This gives them freedom, peace of mind and lots of flexibility. Most of these individuals belong to the middle class. They make between 50,000 and 75,000 USD a year.
#1 Save a Partner’s Income
If you are a couple making dual-income, you must try and save a person’s income. Try to live on one person’s income. Adjust your budget to a single person’s income. The moment you feel comfortable with such a lifestyle, you will have no problems saving what you earn. Couples experience many benefits in following this pattern.
They become financially connected!
They will be able to save lots of money! Saving the breadwinner’s salary is a “big” move.
You can invest on bigger things. This includes cars, homes and real estate.
#2 Earn More Money
When you make a lucrative income, you will be able to save more! People who make 10,000 USD or less find it very difficult to save. On the other hand, people with six-figure salaries can save more than 2/3rd of their income. This is why you must look for ways that can boost your monthly income.
Every extra dime you make will become a saving.
#3 Cut Down on Housing, Transportation & Food
For most homeowners, transportation, food, and housing are three major expenses. By cutting down on these three expenses, you can save a lot of bucks. Here are few tips on how you can cut down:
Downsize your home. Move into a smaller property. By shifting to a triplex or duplex, you can save lots of money! The remaining amount can be used to buy your own property. Typically, housing covers 20 to 30 percent of your monthly budget.
You can cut down on transportation costs by driving fuel-efficient cars and by staying closer to your office. If possible, cycle or walk to the office.
Cut down on food. Try cheaper restaurants, share with a friend.