Sharing Daily Discoveries About Personal Finance And Business Topics

Cut Or Reduce Your Non Essentials To Save Money

Some people have been telling me about their financial resolutions for this year and a lot of it revolved around trying to avoid specific things in order to save money. For example, not dining out as much, trying to quit cold turkey on bad habits, etc. People often say that most things done in moderation is okay. Example, if you normally spent like $200/month on coffee you don’t necessarily need to avoid it all together.

When it comes to saving money on things that are clearly more of a “want” I usually just cut it out first. For example, let’s say the movie budget was the $200/month figure. If for some reason I needed that $200/month for something else I would literally just say “No more movies.”

Now you may say that is a little harsh. But again, these are non essentials in my mind. If something else truly needs the funds which would be more beneficial it only makes sense to do it. But what’s the catch? I actually enable myself to spend money on the activity again by earning it. How? I have to find a way to earn more.

Basically, I need to generate an additional income stream for it. It’s like being a kid again. If you want to spend more on those snazzy items you can do things like open a weekend lemonade stand. I think as adults the essence is the same except what we are putting our money in is a little different. I find that this forces you to mange and make money efficiently. Not to mention how much experience you can gain from it as you are more open to all the ideas that are out there.

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