Many people equate comfortable living with higher incomes. They might assume that it takes earning a six or even seven-figure income to achieve a comfortable financial life, but this doesn’t necessarily have to be the case in every situation.
In fact, a comfortable financial situation could be achieved with a fairly modest income. By adhering to the following three techniques, you may find that you achieve financial security, or at least more financial freedom or freedom of lifestyle, even when you aren’t earning the big bucks.
I’m amazed just how much can often be cut from a budget with a little work. From slicing food costs, to reducing clothing expenditures and utility bills, there is typically a variety of areas to pick and choose from when cutting costs on an average budget.
According to Bundle.com, “The average monthly cost of living (excluding mortgage and rent) for people in U.S. is $3867. Households in U.S. spend an average of $669 on Food & Drink, $674 on Getting Around, $643 on House & Home, $782 on Shopping, $822 on Health & Family, and $277 on Travel & Leisure per month.”
That’s over $46,000 a year! And being able to trim just five or ten percent from these numbers could add up to tens or even hundreds of thousands of extra dollars over time if saved and/or invested properly.
Debt can make it more difficult to live comfortably on a reduced income. A mortgage, home equity line of credit, vehicle loans, credit card debt, and more can not only increase your regular expenses but can cut the power of an income by giving additional dollars to someone else for the temporary use of their money.
While not all debt is bad, an infographic on creditloan.com puts the average American’s interest payments on debt at $600,000 over the course of a lifetime.
Not having this substantial cost added to your expense list could significantly reduce the amount of income upon which it is necessary to live.
Learning to delay gratification
Remember as a child that excitement you’d feel in the weeks or even months leading up to Christmas? It was the anticipation of what could be or what you might receive. The days leading up to Christmas might even have been more exciting than actually opening the gifts that morning.
Well, sometimes it’s the same in our adult lives. Prolonging a purchase – while almost taboo in our current consumer-based economy – might not only make the gratification of eventually buying the item stronger, but it could help in leading a more comfortable financial life.
Putting off a purchase, rather than running out and buying it right away or ordering it online might give you time to reconsider. After a few days or a few weeks, the urge to have the item could fade. You might realize that it wasn’t such a necessary purchase as you first thought. A better version might suddenly become available. Or maybe the price will drop, you will find a coupon, or the item might be discounted.
Whatever the case, a little delayed gratification could help lead not only a less materialistic lifestyle but a more comfortable financial lifestyle as well.
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Building a Revenue Producing Blog
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Preparing to Publish My First E-book
The author is not a licensed financial professional. This article is for informational purposes only and does not constitute advice of any kind. Any action taken by the reader due to the information provided in this article is solely at the reader’s discretion.