How To Kick Spending Habits Permanently

How To Kick Spending Habits Permanently

Savings
I have a copious addiction to good caffeine. It's a luxury I have allowed myself and accounted for in my budget. On average, I buy about 3-5 cups of coffee, instead of getting them for free at my office. This basically amounts to an extra $20 a week that I could easily be saving and investing. In your day-to-day life, what are the biggest spending habits and triggers causing you to lose large amounts of money over the long-run? Again, this goes back to documenting all of your spending on a monthly basis. Stop Your Spending Triggers Paul, what is a spending trigger? Glad you asked. A spending trigger would be something like having a bad day at work and immediately going for some retail therapy. These spending habits are…
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How Much Should You Be Saving?

How Much Should You Be Saving?

Financial Independence, Savings
Break It Down Monthly There's a variety of different rules and savings structures out there. Two very common saving allocations are the 50/30/20 rule and the 80/20 rule. The 50/30/20 rule advocates for utilizing 50 percent of your post-tax income towards addressing all of your necessities. This will include everything from rent, groceries, utilities, etc. 30 percent of your income will be diverted towards extra desires-dining out, entertainment, date nights, and the like. 20 percent of the rest of your income will be pushed into savings and investment accounts. The 80/20 rule is simply having 20 percent of your post-tax income be directed towards savings and 80 percent will be used for all of your other spending needs. In the spirit of aggressively saving/investing towards reaching financial independence at an…
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Savings And Where Is My Money Going?

Savings
So, now you have defined your exact goals and have a clear vision for where you want to go in your life. Let's assess how much savings you currently and your current savings rate in relation to your goals. But, to get to where you want to go, it's a necessity to figure out what you're doing now. I would highly recommend creating a Google spreadsheet and tracking all of your liquid expenses on a month to month basis. If you do this for 30 days, you will have an accurate painting of your present day financial habits. Track All Of Your Expenses For One Full Month I use Google Spreadsheets, as it's the most convenient for me to do so. I create multiple different categories for my expenses and…
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