'A' List Savings & Tips

Our second lesson and the classroom filling up, nice. So we now know if we want to achieve goals in life we need to cut back on the "wants" list, but there also ways to trim the "needs" column so here we go.  

 A) Mortgage or Rent; taking in roommates you can either apply your sub rent directly to the mortgage (it will come straight off the principle saving you thousands of dollars over the term in interest) or if renting you can invest monthly your borders money making you wealthy in time.

 B) Groceries; we all need to eat but it doesn't have to cost as much by buying in the bulk sections so saving on volume and not paying for the packing. Also what is with society eating all this prefab meals anyway, ever wonder how it keeps its shelf-life so long?  So never mind talking about the health issues with the "convenient" way to eat, save big dollars by doing the cooking yourself by picking a day and prep your meals for the week with say a roast beef, turkey etc and be inventive to keep it tasty.

 C) Clothing; there is such a mark up on apparel even when it is 50% off your still paying too much, so look for those stores that mark down the designer brands and save the big $$$  and looking is half the fun is it not? Also learning to mix and match outfits which will reduce the need for more threads hanging in the closet (if you do not have an eye for it just ask a friend who does) and for under-garments and kids outfits any discount box store will do. Also ever notice how some people are styling no matter what they are wearing, its because they are in shape so in other words spending a lot of money on a suit/shoes etc. is not going to change your look, take care of the body first

 D) Transportation; everyone has different circumstances here, without saying using the car less saves you coin and if living near work/school the use of public transport or a car pool plus walking is great. But if buying a car look for the lease buybacks, why? it will have low mileage and warranty as the new car dealers take on the fleets from the rental car agencies to keep rotating their new products to them  Or go to any established used car dealer which offers the same and save big money, i know buying new seems glamorous but there is such a depreciation loss once you drive it of the lot, so
just get some nice air freshener and and think of all the dollars you just saved 

E) Furniture; another mark up king, used pieces or mark downs due to scratches/nicks are just as good. Personally i rummage through old antique stores and find some unique pieces at a great value. So as you see its all how you look at things, as my best friend says; "look beyond the bumpers"

The Beginnings

Before we can start to save for that dream property,
vacation, car, etc. we need to get our financial "house" in order. To begin; make a list of what comes in for income and what goes out for expenses (dates for both). Much like writing down what we would eat to make changes in our waistline, this we will call a financial diet and trim the fat from our expenses to fill that wallet of yours. Here is an example list; A) Rent/Mortgage B) Groceries C) Credit Cards D) Car/Transportation E) Clothing F) Personal Taxes G) Health Care H) Life Insurance I) Furniture  J) Eating Out K) Entertainment ( movies/bars etc) L) Recreation. 

Like any responsible business you need to have enough income coming in to cover the bills going out, so not running into the red. If you do not think this is how it works then you are delusional and should be running for political office 😅, as that is why most governments have a deficit  Also living on credit does not work either as the interest will kill you and you are just working for free, not much incentive to get up Monday morning is it?  Us humans are a funny breed, what we consider a must as part of our wants and needs (in most cases) has to change. 

There is an "A" list of bills;
having a place to live, to eat, clothing and transportation. 

               Wasteful Debt

Its the dining out at expensive restaurants or food deliveries, needing that $7 latte, meeting the boys downtown (every weekend, really), extra pair of shoes to go with the 100 you  already have, spa treatments, a gym membership that comes out each month that never gets used; you get what i am talking about. As North Americans we have grown used to living off borrowed money, well if you want more out of life you need to change that mindset. 

                                                           Outlook Reset

So with just a few small changes in lifestyle you can achieve whatever your dream is by paying yourself first, say 10% of your monthly salary (set it up either with work or your bank for automatic withdraw and you will not miss it) and put that on the "A" list and then start reducing some of those off your wants column . So if your goal is to buy a condo for example, a down payment/closing costs is $20,000 or that holiday in the South Pacific at the same price, then by paying yourself $600 per month for 33 months you achieved it, then get ready to turn that ownership key or book that flight to Australia. Just give up a few extra nights at the bar, maybe brown bag it to work three times per week, making your fav coffee at home for pennies a cup, whatever it is the above list will tell you what to cut back on. I am not saying to give up on everything as its a matter of perspective on what you really want in life, so look in the mirror and you decide.